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

Topaz Energy Corp.

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Advantage Energy Ltd.

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Obsidian Energy Ltd.

Tourmaline Oil Corp.

Vermilion Energy, Inc.

Crew 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 18.83% and Operating profit at 13.72%

Flat results in Mar 26

DEBT-EQUITY RATIO (HY) Highest at 51.44 %
RAW MATERIAL COST(Y) Grown by 12.48% (YoY)
DEBTORS TURNOVER RATIO(HY) Lowest at 6.91 times

With ROE of 4.64%, it has a fair valuation with a 0.96 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 -21.26%, its profits have risen by 26.1% ; the PEG ratio of the company is 0.8

Majority shareholders : FIIs

Below par performance in long term as well as near term

Along with generating -21.26% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

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?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Advantage Energy Ltd.

-21.26%

16.96

31.51%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.83%

EBIT Growth (5y)

13.72%

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

0.96

EV to EBIT

30.39

EV to EBITDA

8.14

EV to Capital Employed

0.97

EV to Sales

3.99

PEG Ratio

0.79

Dividend Yield

ROCE (Latest)

3.20%

ROE (Latest)

4.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

No Trend

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 351.62 MM

ROCE(HY)

Highest at 6.7%

PRE-TAX PROFIT(Q)

At CAD 52.62 MM has Grown at 78.27%

NET PROFIT(Q)

At CAD 37.43 MM has Grown at 50.84%

-4What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 51.44 %

RAW MATERIAL COST(Y)

Grown by 12.48% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.91 times

Here's what is working for Advantage Energy Ltd.

Operating Cash Flow

Highest at CAD 351.62 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Pre-Tax Profit

At CAD 52.62 MM has Grown at 78.27%

over average net sales of the previous four periods of CAD 29.51 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 37.43 MM has Grown at 50.84%

over average net sales of the previous four periods of CAD 24.82 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

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

Debt-Equity Ratio

Highest at 51.44 % 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

Debtors Turnover Ratio

Lowest at 6.91 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 12.48% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales