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PAREX RESOURCES INC (PXT.CA) Stock Fundamental Analysis

TSX:PXT - Toronto Stock Exchange - CA69946Q1046 - Common Stock - Currency: CAD

13.96  -0.15 (-1.06%)

Fundamental Rating

6

Overall PXT gets a fundamental rating of 6 out of 10. We evaluated PXT against 214 industry peers in the Oil, Gas & Consumable Fuels industry. PXT gets an excellent profitability rating and is at the same time showing great financial health properties. PXT is cheap, but on the other hand it scores bad on growth. With these ratings, PXT could be worth investigating further for value investing!.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

PXT had positive earnings in the past year.
PXT had a positive operating cash flow in the past year.
In the past 5 years PXT has always been profitable.
In the past 5 years PXT always reported a positive cash flow from operatings.
PXT.CA Yearly Net Income VS EBIT VS OCF VS FCFPXT.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M 800M

1.2 Ratios

PXT's Return On Assets of 11.50% is amongst the best of the industry. PXT outperforms 93.03% of its industry peers.
The Return On Equity of PXT (13.56%) is better than 81.59% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.75%, PXT belongs to the top of the industry, outperforming 97.01% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PXT is significantly above the industry average of 7.73%.
The last Return On Invested Capital (19.75%) for PXT is well below the 3 year average (28.48%), which needs to be investigated, but indicates that PXT had better years and this may not be a problem.
Industry RankSector Rank
ROA 11.5%
ROE 13.56%
ROIC 19.75%
ROA(3y)20.81%
ROA(5y)17.67%
ROE(3y)26.96%
ROE(5y)22.34%
ROIC(3y)28.48%
ROIC(5y)24.76%
PXT.CA Yearly ROA, ROE, ROICPXT.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

1.3 Margins

PXT has a Profit Margin of 22.77%. This is in the better half of the industry: PXT outperforms 78.11% of its industry peers.
PXT's Profit Margin has declined in the last couple of years.
PXT's Operating Margin of 46.64% is amongst the best of the industry. PXT outperforms 96.52% of its industry peers.
PXT's Operating Margin has declined in the last couple of years.
PXT's Gross Margin of 77.47% is amongst the best of the industry. PXT outperforms 90.55% of its industry peers.
In the last couple of years the Gross Margin of PXT has remained more or less at the same level.
Industry RankSector Rank
OM 46.64%
PM (TTM) 22.77%
GM 77.47%
OM growth 3Y11.55%
OM growth 5Y-3.72%
PM growth 3Y28.12%
PM growth 5Y-4.09%
GM growth 3Y1.52%
GM growth 5Y-1.37%
PXT.CA Yearly Profit, Operating, Gross MarginsPXT.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60 80

8

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PXT is creating value.
PXT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PXT has less shares outstanding
Compared to 1 year ago, PXT has a worse debt to assets ratio.
PXT.CA Yearly Shares OutstandingPXT.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
PXT.CA Yearly Total Debt VS Total AssetsPXT.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

2.2 Solvency

An Altman-Z score of 3.76 indicates that PXT is not in any danger for bankruptcy at the moment.
PXT has a better Altman-Z score (3.76) than 83.58% of its industry peers.
The Debt to FCF ratio of PXT is 0.11, which is an excellent value as it means it would take PXT, only 0.11 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.11, PXT belongs to the best of the industry, outperforming 96.52% of the companies in the same industry.
A Debt/Equity ratio of 0.02 indicates that PXT is not too dependend on debt financing.
The Debt to Equity ratio of PXT (0.02) is better than 75.12% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.02
Debt/FCF 0.11
Altman-Z 3.76
ROIC/WACC2.6
WACC7.6%
PXT.CA Yearly LT Debt VS Equity VS FCFPXT.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B

2.3 Liquidity

A Current Ratio of 1.18 indicates that PXT should not have too much problems paying its short term obligations.
PXT's Current ratio of 1.18 is in line compared to the rest of the industry. PXT outperforms 56.22% of its industry peers.
A Quick Ratio of 1.13 indicates that PXT should not have too much problems paying its short term obligations.
The Quick ratio of PXT (1.13) is better than 62.19% of its industry peers.
Industry RankSector Rank
Current Ratio 1.18
Quick Ratio 1.13
PXT.CA Yearly Current Assets VS Current LiabilitesPXT.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M

1

3. Growth

3.1 Past

PXT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -52.13%.
The Earnings Per Share has been growing by 11.30% on average over the past years. This is quite good.
Looking at the last year, PXT shows a decrease in Revenue. The Revenue has decreased by -1.24% in the last year.
The Revenue has been growing slightly by 7.03% on average over the past years.
EPS 1Y (TTM)-52.13%
EPS 3Y82.58%
EPS 5Y11.3%
EPS Q2Q%-42.48%
Revenue 1Y (TTM)-1.24%
Revenue growth 3Y30.05%
Revenue growth 5Y7.03%
Sales Q2Q%-18.1%

3.2 Future

PXT is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -30.30% yearly.
PXT is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.85% yearly.
EPS Next Y-55.66%
EPS Next 2Y-26.04%
EPS Next 3Y-30.3%
EPS Next 5YN/A
Revenue Next Year-12.25%
Revenue Next 2Y-13.85%
Revenue Next 3Y-11.77%
Revenue Next 5Y-0.85%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
PXT.CA Yearly Revenue VS EstimatesPXT.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M 1B
PXT.CA Yearly EPS VS EstimatesPXT.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 1 2 3 4

8

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 3.84, which indicates a rather cheap valuation of PXT.
Based on the Price/Earnings ratio, PXT is valued cheaper than 96.02% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.35, PXT is valued rather cheaply.
PXT is valuated cheaply with a Price/Forward Earnings ratio of 4.19.
Based on the Price/Forward Earnings ratio, PXT is valued cheaply inside the industry as 90.55% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 95.00. PXT is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 3.84
Fwd PE 4.19
PXT.CA Price Earnings VS Forward Price EarningsPXT.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, PXT is valued cheaply inside the industry as 99.00% of the companies are valued more expensively.
PXT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PXT is cheaper than 97.01% of the companies in the same industry.
Industry RankSector Rank
P/FCF 2.92
EV/EBITDA 1.13
PXT.CA Per share dataPXT.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

PXT has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as PXT's earnings are expected to decrease with -30.30% in the coming years.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y-26.04%
EPS Next 3Y-30.3%

5

5. Dividend

5.1 Amount

PXT has a Yearly Dividend Yield of 10.84%, which is a nice return.
Compared to an average industry Dividend Yield of 6.59, PXT pays a better dividend. On top of this PXT pays more dividend than 97.01% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, PXT pays a better dividend.
Industry RankSector Rank
Dividend Yield 10.84%

5.2 History

PXT has been paying a dividend for less than 5 years, so it still needs to build a track record.
PXT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
PXT.CA Yearly Dividends per sharePXT.CA Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 0.5 1 1.5

5.3 Sustainability

43.64% of the earnings are spent on dividend by PXT. This is a bit on the high side, but may be sustainable.
DP43.64%
EPS Next 2Y-26.04%
EPS Next 3Y-30.3%
PXT.CA Yearly Income VS Free CF VS DividendPXT.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M
PXT.CA Dividend Payout.PXT.CA Dividend Payout, showing the Payout Ratio.PXT.CA Dividend Payout.PayoutRetained Earnings

PAREX RESOURCES INC

TSX:PXT (2/5/2025, 7:00:00 PM)

13.96

-0.15 (-1.06%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-05 2024-11-05/amc
Earnings (Next)02-26 2025-02-26/amc
Inst Owners55.57%
Inst Owner ChangeN/A
Ins Owners0.35%
Ins Owner ChangeN/A
Market Cap1.39B
Analysts68.33
Price Target19.73 (41.33%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 10.84%
Yearly Dividend1.11
Dividend Growth(5Y)N/A
DP43.64%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-60.08%
Min EPS beat(2)-94.99%
Max EPS beat(2)-25.17%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)2.95%
PT rev (3m)-11.09%
EPS NQ rev (1m)-37.42%
EPS NQ rev (3m)-37.42%
EPS NY rev (1m)7.31%
EPS NY rev (3m)-7.3%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.62%
Revenue NY rev (3m)-0.43%
Valuation
Industry RankSector Rank
PE 3.84
Fwd PE 4.19
P/S 0.84
P/FCF 2.92
P/OCF 1.4
P/B 0.5
P/tB 0.52
EV/EBITDA 1.13
EPS(TTM)3.64
EY26.07%
EPS(NY)3.33
Fwd EY23.86%
FCF(TTM)4.78
FCFY34.26%
OCF(TTM)10.01
OCFY71.67%
SpS16.63
BVpS27.92
TBVpS26.87
PEG (NY)N/A
PEG (5Y)0.34
Profitability
Industry RankSector Rank
ROA 11.5%
ROE 13.56%
ROCE 25.95%
ROIC 19.75%
ROICexc 21.26%
ROICexgc 22.1%
OM 46.64%
PM (TTM) 22.77%
GM 77.47%
FCFM 28.76%
ROA(3y)20.81%
ROA(5y)17.67%
ROE(3y)26.96%
ROE(5y)22.34%
ROIC(3y)28.48%
ROIC(5y)24.76%
ROICexc(3y)35.66%
ROICexc(5y)31.76%
ROICexgc(3y)37.65%
ROICexgc(5y)33.71%
ROCE(3y)37.42%
ROCE(5y)32.53%
ROICexcg growth 3Y16.81%
ROICexcg growth 5Y-13.9%
ROICexc growth 3Y18.09%
ROICexc growth 5Y-13.01%
OM growth 3Y11.55%
OM growth 5Y-3.72%
PM growth 3Y28.12%
PM growth 5Y-4.09%
GM growth 3Y1.52%
GM growth 5Y-1.37%
F-Score5
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 0.02
Debt/FCF 0.11
Debt/EBITDA 0.05
Cap/Depr 165.52%
Cap/Sales 31.41%
Interest Coverage 158.65
Cash Conversion 91.7%
Profit Quality 126.31%
Current Ratio 1.18
Quick Ratio 1.13
Altman-Z 3.76
F-Score5
WACC7.6%
ROIC/WACC2.6
Cap/Depr(3y)311.41%
Cap/Depr(5y)244.75%
Cap/Sales(3y)41.75%
Cap/Sales(5y)34.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-52.13%
EPS 3Y82.58%
EPS 5Y11.3%
EPS Q2Q%-42.48%
EPS Next Y-55.66%
EPS Next 2Y-26.04%
EPS Next 3Y-30.3%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.24%
Revenue growth 3Y30.05%
Revenue growth 5Y7.03%
Sales Q2Q%-18.1%
Revenue Next Year-12.25%
Revenue Next 2Y-13.85%
Revenue Next 3Y-11.77%
Revenue Next 5Y-0.85%
EBIT growth 1Y-18.17%
EBIT growth 3Y45.07%
EBIT growth 5Y3.04%
EBIT Next Year27.07%
EBIT Next 3Y6.71%
EBIT Next 5Y10.93%
FCF growth 1Y12.79%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-19.22%
OCF growth 3Y9.09%
OCF growth 5Y-6.67%