TOURMALINE OIL CORP (TOU.CA) Stock Fundamental Analysis
TSX:TOU - Toronto Stock Exchange - CA89156V1067 - Common Stock - Currency: CAD
We assign a fundamental rating of 7 out of 10 to TOU. TOU was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. While TOU belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TOU is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make TOU a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year TOU was profitable.
In the past year TOU had a positive cash flow from operations.
TOU had positive earnings in each of the past 5 years.
TOU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TOU (5.50%) is better than 84.29% of its industry peers.
TOU's Return On Equity of 7.95% is fine compared to the rest of the industry. TOU outperforms 61.43% of its industry peers.
TOU has a better Return On Invested Capital (5.44%) than 71.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TOU is significantly above the industry average of 7.31%.
The 3 year average ROIC (13.45%) for TOU is well above the current ROIC(5.44%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 7.95% | ||
| ROIC | 5.44% |
ROA(3y)12.68%
ROA(5y)11.23%
ROE(3y)17.77%
ROE(5y)15.56%
ROIC(3y)13.45%
ROIC(5y)10.36%
1.3 Margins
TOU has a Profit Margin of 22.39%. This is amongst the best in the industry. TOU outperforms 84.76% of its industry peers.
TOU's Profit Margin has improved in the last couple of years.
TOU has a Operating Margin of 26.25%. This is in the better half of the industry: TOU outperforms 76.19% of its industry peers.
In the last couple of years the Operating Margin of TOU has grown nicely.
TOU's Gross Margin of 98.63% is amongst the best of the industry. TOU outperforms 100.00% of its industry peers.
TOU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.25% | ||
| PM (TTM) | 22.39% | ||
| GM | 98.63% |
OM growth 3Y-13.4%
OM growth 5Y8.65%
PM growth 3Y-20.73%
PM growth 5Y8.86%
GM growth 3Y-0.05%
GM growth 5Y0.07%
2. Health
2.1 Basic Checks
TOU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TOU has been increased compared to 1 year ago.
The number of shares outstanding for TOU has been increased compared to 5 years ago.
TOU has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.82 indicates that TOU is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.82, TOU is doing good in the industry, outperforming 77.62% of the companies in the same industry.
The Debt to FCF ratio of TOU is 1.87, which is an excellent value as it means it would take TOU, only 1.87 years of fcf income to pay off all of its debts.
TOU has a Debt to FCF ratio of 1.87. This is amongst the best in the industry. TOU outperforms 84.29% of its industry peers.
TOU has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
TOU has a Debt to Equity ratio of 0.08. This is in the better half of the industry: TOU outperforms 72.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 2.82 |
ROIC/WACC0.68
WACC8.05%
2.3 Liquidity
A Current Ratio of 0.67 indicates that TOU may have some problems paying its short term obligations.
The Current ratio of TOU (0.67) is worse than 64.29% of its industry peers.
A Quick Ratio of 0.67 indicates that TOU may have some problems paying its short term obligations.
With a Quick ratio value of 0.67, TOU perfoms like the industry average, outperforming 54.29% of the companies in the same industry.
The current and quick ratio evaluation for TOU is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
TOU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.60%.
TOU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.29% yearly.
TOU shows a decrease in Revenue. In the last year, the revenue decreased by -2.60%.
The Revenue has been growing by 20.93% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-32.6%
EPS 3Y-17.7%
EPS 5Y24.29%
EPS Q2Q%-18.84%
Revenue 1Y (TTM)-2.6%
Revenue growth 3Y7.8%
Revenue growth 5Y20.93%
Sales Q2Q%10.05%
3.2 Future
The Earnings Per Share is expected to grow by 30.49% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.09% on average over the next years. This is quite good.
EPS Next Y73.12%
EPS Next 2Y37.21%
EPS Next 3Y25.44%
EPS Next 5Y30.49%
Revenue Next Year33.82%
Revenue Next 2Y19.58%
Revenue Next 3Y12.09%
Revenue Next 5YN/A
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 accelerating.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
TOU is valuated rather expensively with a Price/Earnings ratio of 18.80.
TOU's Price/Earnings ratio is in line with the industry average.
TOU is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.61 indicates a reasonable valuation of TOU.
TOU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TOU is cheaper than 61.90% of the companies in the same industry.
TOU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.8 | ||
| Fwd PE | 9.61 |
4.2 Price Multiples
65.71% of the companies in the same industry are more expensive than TOU, based on the Enterprise Value to EBITDA ratio.
TOU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.28 | ||
| EV/EBITDA | 8.26 |
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.
The excellent profitability rating of TOU may justify a higher PE ratio.
A more expensive valuation may be justified as TOU's earnings are expected to grow with 25.44% in the coming years.
PEG (NY)0.26
PEG (5Y)0.77
EPS Next 2Y37.21%
EPS Next 3Y25.44%
5. Dividend
5.1 Amount
TOU has a Yearly Dividend Yield of 3.08%. Purely for dividend investing, there may be better candidates out there.
TOU's Dividend Yield is a higher than the industry average which is at 6.19.
TOU's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
5.2 History
On average, the dividend of TOU grows each year by 48.01%, which is quite nice.
TOU has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)48.01%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
99.26% of the earnings are spent on dividend by TOU. This is not a sustainable payout ratio.
The dividend of TOU is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP99.26%
EPS Next 2Y37.21%
EPS Next 3Y25.44%
TSX:TOU (7/4/2025, 7:00:00 PM)
63.35
-0.24 (-0.38%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners47.44%
Inst Owner ChangeN/A
Ins Owners0.79%
Ins Owner ChangeN/A
Market Cap23.73B
Analysts80
Price Target77.94 (23.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
Yearly Dividend3.27
Dividend Growth(5Y)48.01%
DP99.26%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-30.43%
Min EPS beat(2)-61.32%
Max EPS beat(2)0.46%
EPS beat(4)2
Avg EPS beat(4)-16.24%
Min EPS beat(4)-61.32%
Max EPS beat(4)15.43%
EPS beat(8)4
Avg EPS beat(8)-9.85%
EPS beat(12)6
Avg EPS beat(12)-1.92%
EPS beat(16)9
Avg EPS beat(16)9.24%
Revenue beat(2)0
Avg Revenue beat(2)-25.18%
Min Revenue beat(2)-30.54%
Max Revenue beat(2)-19.82%
Revenue beat(4)0
Avg Revenue beat(4)-28.72%
Min Revenue beat(4)-40%
Max Revenue beat(4)-19.82%
Revenue beat(8)2
Avg Revenue beat(8)-5.51%
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)-0.37%
PT rev (3m)-3.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.8 | ||
| Fwd PE | 9.61 | ||
| P/S | 4.31 | ||
| P/FCF | 36.28 | ||
| P/OCF | 7.47 | ||
| P/B | 1.53 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 8.26 |
EPS(TTM)3.37
EY5.32%
EPS(NY)6.59
Fwd EY10.4%
FCF(TTM)1.75
FCFY2.76%
OCF(TTM)8.48
OCFY13.39%
SpS14.69
BVpS41.37
TBVpS41.37
PEG (NY)0.26
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 7.95% | ||
| ROCE | 6.98% | ||
| ROIC | 5.44% | ||
| ROICexc | 5.44% | ||
| ROICexgc | 5.44% | ||
| OM | 26.25% | ||
| PM (TTM) | 22.39% | ||
| GM | 98.63% | ||
| FCFM | 11.89% |
ROA(3y)12.68%
ROA(5y)11.23%
ROE(3y)17.77%
ROE(5y)15.56%
ROIC(3y)13.45%
ROIC(5y)10.36%
ROICexc(3y)13.45%
ROICexc(5y)10.36%
ROICexgc(3y)13.45%
ROICexgc(5y)10.36%
ROCE(3y)17.25%
ROCE(5y)13.29%
ROICexcg growth 3Y-17.72%
ROICexcg growth 5Y15.13%
ROICexc growth 3Y-17.72%
ROICexc growth 5Y15.13%
OM growth 3Y-13.4%
OM growth 5Y8.65%
PM growth 3Y-20.73%
PM growth 5Y8.86%
GM growth 3Y-0.05%
GM growth 5Y0.07%
F-Score4
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.87 | ||
| Debt/EBITDA | 0.4 | ||
| Cap/Depr | 159.01% | ||
| Cap/Sales | 45.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 104.82% | ||
| Profit Quality | 53.09% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 2.82 |
F-Score4
WACC8.05%
ROIC/WACC0.68
Cap/Depr(3y)156.64%
Cap/Depr(5y)159.87%
Cap/Sales(3y)33.91%
Cap/Sales(5y)39.63%
Profit Quality(3y)77.43%
Profit Quality(5y)56.32%
High Growth Momentum
Growth
EPS 1Y (TTM)-32.6%
EPS 3Y-17.7%
EPS 5Y24.29%
EPS Q2Q%-18.84%
EPS Next Y73.12%
EPS Next 2Y37.21%
EPS Next 3Y25.44%
EPS Next 5Y30.49%
Revenue 1Y (TTM)-2.6%
Revenue growth 3Y7.8%
Revenue growth 5Y20.93%
Sales Q2Q%10.05%
Revenue Next Year33.82%
Revenue Next 2Y19.58%
Revenue Next 3Y12.09%
Revenue Next 5YN/A
EBIT growth 1Y-32.2%
EBIT growth 3Y-6.65%
EBIT growth 5Y31.39%
EBIT Next Year175.94%
EBIT Next 3Y46.8%
EBIT Next 5YN/A
FCF growth 1Y-78.54%
FCF growth 3Y-18.34%
FCF growth 5YN/A
OCF growth 1Y-37.91%
OCF growth 3Y-1.39%
OCF growth 5Y18.37%