GEAR ENERGY LTD (GXE.CA) Stock Fundamental Analysis
TSX:GXE - Toronto Stock Exchange - CA36830P1045 - Common Stock - Currency: CAD
GXE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 209 industry peers in the Oil, Gas & Consumable Fuels industry. GXE has only an average score on both its financial health and profitability. GXE is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year GXE was profitable.
In the past year GXE had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: GXE reported negative net income in multiple years.
Each year in the past 5 years GXE had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GXE (3.59%) is better than 61.46% of its industry peers.
With a Return On Equity value of 4.97%, GXE perfoms like the industry average, outperforming 50.24% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.79%, GXE is in the better half of the industry, outperforming 69.76% of the companies in the same industry.
GXE had an Average Return On Invested Capital over the past 3 years of 7.28%. This is in line with the industry average of 7.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 4.97% | ||
| ROIC | 5.79% |
ROA(3y)16.42%
ROA(5y)3.64%
ROE(3y)24.63%
ROE(5y)-0.59%
ROIC(3y)7.28%
ROIC(5y)4.5%
1.3 Margins
Looking at the Profit Margin, with a value of 9.19%, GXE is in line with its industry, outperforming 57.07% of the companies in the same industry.
In the last couple of years the Profit Margin of GXE has grown nicely.
GXE has a Operating Margin of 19.40%. This is comparable to the rest of the industry: GXE outperforms 59.02% of its industry peers.
GXE's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.4% | ||
| PM (TTM) | 9.19% | ||
| GM | N/A |
OM growth 3Y94.29%
OM growth 5Y15.28%
PM growth 3YN/A
PM growth 5Y5.23%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GXE is destroying value.
Compared to 1 year ago, GXE has more shares outstanding
The number of shares outstanding for GXE has been increased compared to 5 years ago.
Compared to 1 year ago, GXE has a worse debt to assets ratio.
2.2 Solvency
GXE has an Altman-Z score of 0.95. This is a bad value and indicates that GXE is not financially healthy and even has some risk of bankruptcy.
GXE's Altman-Z score of 0.95 is in line compared to the rest of the industry. GXE outperforms 57.07% of its industry peers.
The Debt to FCF ratio of GXE is 0.63, which is an excellent value as it means it would take GXE, only 0.63 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.63, GXE belongs to the best of the industry, outperforming 93.66% of the companies in the same industry.
GXE has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
GXE's Debt to Equity ratio of 0.06 is fine compared to the rest of the industry. GXE outperforms 71.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.71
WACC8.16%
2.3 Liquidity
A Current Ratio of 1.20 indicates that GXE should not have too much problems paying its short term obligations.
The Current ratio of GXE (1.20) is comparable to the rest of the industry.
GXE has a Quick Ratio of 1.20. This is a bad value and indicates that GXE is not financially healthy enough and could expect problems in meeting its short term obligations.
GXE has a Quick ratio (0.88) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
GXE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -68.75%.
Measured over the past years, GXE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.45% on average per year.
GXE shows a decrease in Revenue. In the last year, the revenue decreased by -0.86%.
The Revenue has been growing slightly by 5.46% on average over the past years.
EPS 1Y (TTM)-68.75%
EPS 3Y-46.87%
EPS 5Y8.45%
EPS Q2Q%0%
Revenue 1Y (TTM)-0.86%
Revenue growth 3Y18.65%
Revenue growth 5Y5.46%
Sales Q2Q%-19.86%
3.2 Future
GXE is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -27.35% yearly.
Based on estimates for the next years, GXE will show a decrease in Revenue. The Revenue will decrease by -2.21% on average per year.
EPS Next Y219.83%
EPS Next 2Y92.44%
EPS Next 3Y-12.35%
EPS Next 5Y-27.35%
Revenue Next Year-0.43%
Revenue Next 2Y0.82%
Revenue Next 3Y-5.63%
Revenue Next 5Y-2.21%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.60, the valuation of GXE can be described as reasonable.
GXE's Price/Earnings ratio is a bit cheaper when compared to the industry. GXE is cheaper than 65.85% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.53, GXE is valued rather cheaply.
The Price/Forward Earnings ratio is 4.32, which indicates a rather cheap valuation of GXE.
GXE's Price/Forward Earnings ratio is rather cheap when compared to the industry. GXE is cheaper than 89.27% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, GXE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 4.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GXE indicates a rather cheap valuation: GXE is cheaper than 95.12% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GXE is valued cheaply inside the industry as 94.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.23 | ||
| EV/EBITDA | 2.05 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A cheap valuation may be justified as GXE's earnings are expected to decrease with -12.35% in the coming years.
PEG (NY)0.04
PEG (5Y)1.14
EPS Next 2Y92.44%
EPS Next 3Y-12.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.50%, GXE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.54, GXE pays a better dividend. On top of this GXE pays more dividend than 98.54% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, GXE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.5% |
5.2 History
GXE has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
129.50% of the earnings are spent on dividend by GXE. This is not a sustainable payout ratio.
DP129.5%
EPS Next 2Y92.44%
EPS Next 3Y-12.35%
TSX:GXE (2/7/2025, 7:00:00 PM)
0.48
0 (0%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners2.42%
Inst Owner ChangeN/A
Ins Owners7.6%
Ins Owner ChangeN/A
Market Cap126.52M
Analysts74.29
Price Target0.77 (60.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.5% |
Yearly Dividend0.1
Dividend Growth(5Y)N/A
DP129.5%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.08%
Min EPS beat(2)-0.99%
Max EPS beat(2)13.15%
EPS beat(4)1
Avg EPS beat(4)-71.71%
Min EPS beat(4)-248.51%
Max EPS beat(4)13.15%
EPS beat(8)2
Avg EPS beat(8)-36.08%
EPS beat(12)4
Avg EPS beat(12)-25%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-13.72%
Min Revenue beat(2)-15.09%
Max Revenue beat(2)-12.35%
Revenue beat(4)0
Avg Revenue beat(4)-8.42%
Min Revenue beat(4)-15.09%
Max Revenue beat(4)-1.19%
Revenue beat(8)1
Avg Revenue beat(8)-10.63%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-15.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-50%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-12.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 4.32 | ||
| P/S | 0.95 | ||
| P/FCF | 5.23 | ||
| P/OCF | 2 | ||
| P/B | 0.52 | ||
| P/tB | 0.52 | ||
| EV/EBITDA | 2.05 |
EPS(TTM)0.05
EY10.42%
EPS(NY)0.11
Fwd EY23.15%
FCF(TTM)0.09
FCFY19.13%
OCF(TTM)0.24
OCFY49.98%
SpS0.5
BVpS0.93
TBVpS0.93
PEG (NY)0.04
PEG (5Y)1.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 4.97% | ||
| ROCE | 8.04% | ||
| ROIC | 5.79% | ||
| ROICexc | 5.79% | ||
| ROICexgc | 5.79% | ||
| OM | 19.4% | ||
| PM (TTM) | 9.19% | ||
| GM | N/A | ||
| FCFM | 18.27% |
ROA(3y)16.42%
ROA(5y)3.64%
ROE(3y)24.63%
ROE(5y)-0.59%
ROIC(3y)7.28%
ROIC(5y)4.5%
ROICexc(3y)7.28%
ROICexc(5y)4.5%
ROICexgc(3y)7.28%
ROICexgc(5y)4.5%
ROCE(3y)10.11%
ROCE(5y)6.25%
ROICexcg growth 3Y112.35%
ROICexcg growth 5Y25.04%
ROICexc growth 3Y112.35%
ROICexc growth 5Y25.04%
OM growth 3Y94.29%
OM growth 5Y15.28%
PM growth 3YN/A
PM growth 5Y5.23%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.63 | ||
| Debt/EBITDA | 0.22 | ||
| Cap/Depr | 89.43% | ||
| Cap/Sales | 29.45% | ||
| Interest Coverage | 11.02 | ||
| Cash Conversion | 91.19% | ||
| Profit Quality | 198.74% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 0.95 |
F-Score6
WACC8.16%
ROIC/WACC0.71
Cap/Depr(3y)109.76%
Cap/Depr(5y)88.27%
Cap/Sales(3y)32.62%
Cap/Sales(5y)29.83%
Profit Quality(3y)86.29%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-68.75%
EPS 3Y-46.87%
EPS 5Y8.45%
EPS Q2Q%0%
EPS Next Y219.83%
EPS Next 2Y92.44%
EPS Next 3Y-12.35%
EPS Next 5Y-27.35%
Revenue 1Y (TTM)-0.86%
Revenue growth 3Y18.65%
Revenue growth 5Y5.46%
Sales Q2Q%-19.86%
Revenue Next Year-0.43%
Revenue Next 2Y0.82%
Revenue Next 3Y-5.63%
Revenue Next 5Y-2.21%
EBIT growth 1Y-3.56%
EBIT growth 3Y130.53%
EBIT growth 5Y21.58%
EBIT Next Year206.84%
EBIT Next 3Y27.06%
EBIT Next 5Y16%
FCF growth 1Y-53.48%
FCF growth 3Y-4.92%
FCF growth 5YN/A
OCF growth 1Y-28.64%
OCF growth 3Y28.14%
OCF growth 5Y8.78%