GEAR ENERGY LTD (GXE.CA) Stock Fundamental Analysis
TSX:GXE - Toronto Stock Exchange - CA36830P1045 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to GXE. GXE was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. GXE has only an average score on both its financial health and profitability. GXE has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
GXE had positive earnings in the past year.
GXE had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: GXE reported negative net income in multiple years.
In the past 5 years GXE always reported a positive cash flow from operatings.
1.2 Ratios
GXE has a better Return On Assets (3.59%) than 61.46% of its industry peers.
Looking at the Return On Equity, with a value of 4.97%, GXE is in line with its industry, outperforming 50.24% of the companies in the same industry.
GXE has a better Return On Invested Capital (5.79%) than 69.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GXE 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
GXE's Profit Margin of 9.19% is in line compared to the rest of the industry. GXE outperforms 57.07% of its industry peers.
GXE's Profit Margin has improved in the last couple of years.
GXE has a Operating Margin (19.40%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of GXE has grown nicely.
| 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
GXE has more shares outstanding than it did 5 years ago.
GXE has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that GXE is in the distress zone and has some risk of bankruptcy.
GXE has a Altman-Z score (0.95) which is comparable to the rest of the industry.
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.
GXE's Debt to FCF ratio of 0.63 is amongst the best of the industry. GXE outperforms 93.66% of its industry peers.
GXE has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.06, GXE is doing good in the industry, outperforming 71.71% of the companies in the same industry.
| 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.
GXE has a Current ratio (1.20) which is in line with its industry peers.
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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The earnings per share for GXE have decreased strongly by -68.75% in the last year.
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.
The Revenue has decreased by -0.86% in the past year.
GXE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.46% yearly.
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
Based on estimates for the next years, GXE will show a very negative growth in Earnings Per Share. The EPS will decrease by -27.35% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
GXE is valuated reasonably with a Price/Earnings ratio of 9.60.
Compared to the rest of the industry, the Price/Earnings ratio of GXE indicates a somewhat cheap valuation: GXE is cheaper than 65.85% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GXE to the average of the S&P500 Index (26.55), we can say GXE is valued rather cheaply.
With a Price/Forward Earnings ratio of 4.32, the valuation of GXE can be described as very cheap.
Based on the Price/Forward Earnings ratio, GXE is valued cheaper than 89.27% of the companies in the same industry.
GXE is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 4.32 |
4.2 Price Multiples
95.12% of the companies in the same industry are more expensive than GXE, based on the Enterprise Value to EBITDA ratio.
94.15% of the companies in the same industry are more expensive than GXE, based on the Price/Free Cash Flow ratio.
| 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.
GXE's earnings are expected to decrease with -12.35% in the coming years. This may justify a cheaper valuation.
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.
GXE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.5% |
5.2 History
GXE has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
GXE pays out 129.50% of its income as dividend. 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%