INTERNATIONAL PETROLEUM CORP (IPCO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:IPCO - CA46016U1084 - Common Stock
27.15 CAD
+1.17 (+4.5%)
Taking everything into account, IPCO scores 4 out of 10 in our fundamental rating. IPCO was compared to 206 industry peers in the Oil, Gas & Consumable Fuels industry. IPCO has an average financial health and profitability rating. IPCO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year IPCO was profitable.
- IPCO had a positive operating cash flow in the past year.
- Of the past 5 years IPCO 4 years were profitable.
- IPCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of IPCO (1.74%) is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 3.72%, IPCO is in line with its industry, outperforming 57.77% of the companies in the same industry.
- IPCO has a better Return On Invested Capital (5.34%) than 75.73% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for IPCO is significantly above the industry average of 6.62%.
- The last Return On Invested Capital (5.34%) for IPCO is well below the 3 year average (14.23%), which needs to be investigated, but indicates that IPCO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 3.72% | ||
| ROIC | 5.34% |
ROA(3y)11.24%
ROA(5y)7.87%
ROE(3y)20.63%
ROE(5y)13.62%
ROIC(3y)14.23%
ROIC(5y)N/A
1.3 Margins
- IPCO's Profit Margin of 4.84% is in line compared to the rest of the industry. IPCO outperforms 57.28% of its industry peers.
- IPCO's Profit Margin has declined in the last couple of years.
- IPCO's Operating Margin of 17.92% is fine compared to the rest of the industry. IPCO outperforms 74.27% of its industry peers.
- In the last couple of years the Operating Margin of IPCO has remained more or less at the same level.
- IPCO's Gross Margin of 20.13% is in line compared to the rest of the industry. IPCO outperforms 51.46% of its industry peers.
- In the last couple of years the Gross Margin of IPCO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.92% | ||
| PM (TTM) | 4.84% | ||
| GM | 20.13% |
OM growth 3Y-6.32%
OM growth 5Y-0.81%
PM growth 3Y-16.38%
PM growth 5Y-7.29%
GM growth 3Y-5.84%
GM growth 5Y-0.94%
2. Health
2.1 Basic Checks
- IPCO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, IPCO has less shares outstanding
- Compared to 5 years ago, IPCO has less shares outstanding
- The debt/assets ratio for IPCO is higher compared to a year ago.
2.2 Solvency
- IPCO has an Altman-Z score of 2.50. This is not the best score and indicates that IPCO is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of IPCO (2.50) is better than 72.82% of its industry peers.
- A Debt/Equity ratio of 0.51 indicates that IPCO is somewhat dependend on debt financing.
- IPCO has a Debt to Equity ratio (0.51) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.5 |
ROIC/WACC0.68
WACC7.83%
2.3 Liquidity
- A Current Ratio of 1.00 indicates that IPCO should not have too much problems paying its short term obligations.
- With a decent Current ratio value of 1.00, IPCO is doing good in the industry, outperforming 63.11% of the companies in the same industry.
- A Quick Ratio of 0.86 indicates that IPCO may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.86, IPCO is in the better half of the industry, outperforming 60.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
- The earnings per share for IPCO have decreased strongly by -72.25% in the last year.
- IPCO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.65% yearly.
- IPCO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.08%.
- IPCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.58% yearly.
EPS 1Y (TTM)-72.25%
EPS 3Y-4.43%
EPS 5Y5.65%
EPS Q2Q%-83.33%
Revenue 1Y (TTM)-11.08%
Revenue growth 3Y6.18%
Revenue growth 5Y7.58%
Sales Q2Q%-0.52%
3.2 Future
- The Earnings Per Share is expected to grow by 20.56% on average over the next years. This is a very strong growth
- Based on estimates for the next years, IPCO will show a quite strong growth in Revenue. The Revenue will grow by 10.30% on average per year.
EPS Next Y-47.07%
EPS Next 2Y-12.22%
EPS Next 3Y34.55%
EPS Next 5Y20.56%
Revenue Next Year-14.98%
Revenue Next 2Y-5.66%
Revenue Next 3Y10.72%
Revenue Next 5Y10.3%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- IPCO is valuated quite expensively with a Price/Earnings ratio of 69.62.
- The rest of the industry has a similar Price/Earnings ratio as IPCO.
- IPCO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.82.
- With a Price/Forward Earnings ratio of 32.08, IPCO can be considered very expensive at the moment.
- IPCO's Price/Forward Earnings ratio is in line with the industry average.
- IPCO's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.62 | ||
| Fwd PE | 32.08 |
4.2 Price Multiples
- IPCO's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.29 |
4.3 Compensation for Growth
- IPCO has a very decent profitability rating, which may justify a higher PE ratio.
- IPCO's earnings are expected to grow with 34.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)12.32
EPS Next 2Y-12.22%
EPS Next 3Y34.55%
5. Dividend
5.1 Amount
- No dividends for IPCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
INTERNATIONAL PETROLEUM CORP / IPCO.CA FAQ
What is the ChartMill fundamental rating of INTERNATIONAL PETROLEUM CORP (IPCO.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to IPCO.CA.
What is the valuation status of INTERNATIONAL PETROLEUM CORP (IPCO.CA) stock?
ChartMill assigns a valuation rating of 2 / 10 to INTERNATIONAL PETROLEUM CORP (IPCO.CA). This can be considered as Overvalued.
How profitable is INTERNATIONAL PETROLEUM CORP (IPCO.CA) stock?
INTERNATIONAL PETROLEUM CORP (IPCO.CA) has a profitability rating of 6 / 10.
Can you provide the financial health for IPCO stock?
The financial health rating of INTERNATIONAL PETROLEUM CORP (IPCO.CA) is 4 / 10.