GEAR ENERGY LTD (GXE.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:GXE • CA36830P1045
0.48 CAD
0 (0%)
Last: Feb 7, 2025, 07:00 PM
GXE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 216 industry peers in the Oil, Gas & Consumable Fuels industry. GXE has an average financial health and profitability rating. GXE has a bad growth rate and is valued cheaply.
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.
- In the past 5 years GXE always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of GXE (3.59%) is better than 61.46% of its industry peers.
- The Return On Equity of GXE (4.97%) is comparable to the rest of the industry.
- GXE's Return On Invested Capital of 5.79% is fine compared to the rest of the industry. GXE outperforms 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 6.50%.
| 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 (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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GXE is destroying value.
- Compared to 1 year ago, GXE has more shares outstanding
- GXE has a worse debt/assets ratio than last year.
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.
- With a Altman-Z score value of 0.95, GXE perfoms like the industry average, outperforming 57.07% of the companies in the same industry.
- GXE has a debt to FCF ratio of 0.63. This is a very positive value and a sign of high solvency as it would only need 0.63 years to pay back of all of its debts.
- GXE has a Debt to FCF ratio of 0.63. This is amongst the best in the industry. GXE outperforms 93.66% of its industry peers.
- A Debt/Equity ratio of 0.06 indicates that GXE is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.06, GXE is in the better half of 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
- GXE has a Current Ratio of 1.20. This is a normal value and indicates that GXE is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.20, GXE perfoms like the industry average, outperforming 58.05% of the companies in the same industry.
- A Quick Ratio of 0.88 indicates that GXE may have some problems paying its short term obligations.
- With a Quick ratio value of 0.88, GXE perfoms like the industry average, outperforming 52.68% of the companies in the same 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.
- Looking at the last year, GXE shows a decrease in Revenue. The Revenue has decreased by -0.86% in the last 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
- 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.
- The Revenue is expected to decrease by -2.21% on average over the next years.
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
- The Price/Earnings ratio is 9.60, which indicates a very decent valuation of GXE.
- 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.
- GXE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.32.
- The Price/Forward Earnings ratio is 4.32, which indicates a rather cheap valuation of GXE.
- Based on the Price/Forward Earnings ratio, GXE is valued cheaply inside the industry as 89.27% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, GXE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 4.32 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GXE is valued cheaper than 95.12% of the companies 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
- GXE's 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.
- GXE's Dividend Yield is rather good when compared to the industry average which is at 3.01. GXE pays more dividend than 98.54% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, 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%
GEAR ENERGY LTD / GXE.CA FAQ
What is the ChartMill fundamental rating of GEAR ENERGY LTD (GXE.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to GXE.CA.
What is the valuation status of GEAR ENERGY LTD (GXE.CA) stock?
ChartMill assigns a valuation rating of 8 / 10 to GEAR ENERGY LTD (GXE.CA). This can be considered as Undervalued.
Can you provide the profitability details for GEAR ENERGY LTD?
GEAR ENERGY LTD (GXE.CA) has a profitability rating of 5 / 10.
What is the valuation of GEAR ENERGY LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GEAR ENERGY LTD (GXE.CA) is 9.6 and the Price/Book (PB) ratio is 0.52.
Can you provide the expected EPS growth for GXE stock?
The Earnings per Share (EPS) of GEAR ENERGY LTD (GXE.CA) is expected to grow by 219.83% in the next year.