Advantage Energy Ltd. (AAV) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Canadian Natural Resources Ltd.

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Parex Resources, Inc.

MEG Energy Corp.

Advantage Energy Ltd.

Cardinal Energy Ltd.

Obsidian Energy Ltd.

Tourmaline Oil Corp.

Crew Energy, Inc.

Vermilion Energy, Inc.

Why is Advantage Energy Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 9.09

Healthy long term growth as Net Sales has grown by an annual rate of 22.36% and Operating profit at 120.03%

The company has declared Negative results for the last 8 consecutive quarters

INTEREST(HY) At CAD 30.01 MM has Grown at 77.28%

With ROE of 4.88%, it has a expensive valuation with a 1.14 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 26.53%, its profits have risen by 24.6% ; the PEG ratio of the company is 1.2

Majority shareholders : FIIs

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Advantage Energy Ltd. should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Advantage Energy Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Advantage Energy Ltd.

20.51%

16.43

38.11%

S&P/TSX 60

23.72%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

22.45%

EBIT Growth (5y)

56.76%

EBIT to Interest (avg)

9.09

Debt to EBITDA (avg)

1.39

Net Debt to Equity (avg)

0.47

Sales to Capital Employed (avg)

0.24

Tax Ratio

5.73%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

11.07%

ROE (avg)

7.70%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.13

EV to EBIT

28.68

EV to EBITDA

8.49

EV to Capital Employed

1.08

EV to Sales

4.28

PEG Ratio

0.05

Dividend Yield

ROCE (Latest)

3.78%

ROE (Latest)

6.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

NET PROFIT(HY)

At CAD 16.29 MM has Grown at 223.43%

RAW MATERIAL COST(Y)

Fallen by -52.54% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 10.48 times

-19What is not working for the Company

PRE-TAX PROFIT(Q)

At CAD 7.2 MM has Fallen at -67.03%

NET PROFIT(Q)

At CAD -1.55 MM has Fallen at -107.41%

INTEREST(HY)

At CAD 30.05 MM has Grown at 15.98%

DEBT-EQUITY RATIO (HY)

Highest at 48.3 %

NET SALES(Q)

Lowest at CAD 120.54 MM

OPERATING PROFIT(Q)

Lowest at CAD 43.69 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 36.24 %

Here's what is working for Advantage Energy Ltd.

Debtors Turnover Ratio

Highest at 10.48 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -52.54% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Advantage Energy Ltd.

Net Sales

At CAD 120.54 MM has Fallen at -22.97%

over average net sales of the previous four periods of CAD 156.49 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CAD MM)

Pre-Tax Profit

At CAD 7.2 MM has Fallen at -67.03%

over average net sales of the previous four periods of CAD 21.85 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -1.55 MM has Fallen at -107.41%

over average net sales of the previous four periods of CAD 20.93 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Interest

At CAD 30.05 MM has Grown at 15.98%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Debt-Equity Ratio

Highest at 48.3 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Sales

Lowest at CAD 120.54 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Operating Profit

Lowest at CAD 43.69 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at 36.24 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Non Operating Income

Highest at CAD 18.5 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income