Africa Oil Corp. (AOI) 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

Peyto Exploration & Development Corp.

Headwater Exploration, Inc.

Tamarack Valley Energy Ltd.

Athabasca Oil Corp.

NuVista Energy Ltd.

Birchcliff Energy Ltd.

Baytex Energy Corp.

Kelt Exploration Ltd.

Africa Oil Corp.

Paramount Resources Ltd.

Enerplus Corp.

Why is Africa Oil Corp. ?

Negative results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 419.46
DEBT-EQUITY RATIO (HY) Highest at 30.33 %
INTEREST(Q) Highest at CAD 25.38 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 14.77%, its profits have fallen by -112.6%

Underperformed the market in the last 1 year

The stock has generated a return of 14.77% in the last 1 year, much lower than market (S&P/TSX 60) returns of 28.13%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Africa Oil Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Africa Oil Corp.

12.92%

3.45

37.31%

S&P/TSX 60

29.63%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

283.32%

EBIT Growth (5y)

58.84%

EBIT to Interest (avg)

-3.68

Debt to EBITDA (avg)

0.14

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

0.30

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

2.60%

ROE (avg)

18.26%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.33

EV to EBIT

9.65

EV to EBITDA

3.05

EV to Capital Employed

1.25

EV to Sales

1.92

PEG Ratio

Dividend Yield

ROCE (Latest)

13.00%

ROE (Latest)

-3.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

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

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 242.13 MM

PRE-TAX PROFIT(Q)

At CAD 10.7 MM has Grown at 455.09%

RAW MATERIAL COST(Y)

Fallen by -8,037.14% (YoY

NET SALES(Q)

At CAD 156.79 MM has Grown at 43.03%

-26What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 419.46

DEBT-EQUITY RATIO (HY)

Highest at 30.33 %

INTEREST(Q)

Highest at CAD 25.38 MM

NET PROFIT(Q)

Lowest at CAD -57.89 MM

Here's what is working for Africa Oil Corp.

Pre-Tax Profit

At CAD 10.7 MM has Grown at 455.09%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Operating Cash Flow

Highest at CAD 242.13 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Sales

At CAD 156.79 MM has Grown at 43.03%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Raw Material Cost

Fallen by -8,037.14% (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 Africa Oil Corp.

Net Profit

At CAD -57.89 MM has Fallen at -436.32%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Interest

At CAD 25.38 MM has Grown at 89.58%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest Coverage Ratio

Lowest at 419.46

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CAD 25.38 MM

in the last five periods and Increased by 89.58% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Net Profit

Lowest at CAD -57.89 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Debt-Equity Ratio

Highest at 30.33 %

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