Alvopetro Energy Ltd. (ALV) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Surge Energy, Inc.

Alvopetro Energy Ltd.

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Spartan Delta Corp.

Cardinal Energy Ltd.

Frontera Energy Corp.

Crew Energy, Inc.

Pine Cliff Energy Ltd.

Obsidian Energy Ltd.

Trillion Energy International, Inc.

CGX Energy, Inc.

Why is Alvopetro Energy Ltd. ?

High Management Efficiency with a high ROE of 28.03%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 14.53

Healthy long term growth as Net Sales has grown by an annual rate of 132.38% and Operating profit at 56.55%

With ROE of 24.42%, it has a very attractive valuation with a 1.85 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 40.46%, its profits have fallen by -6.2%

Market Beating Performance

The stock has generated a return of 40.46% in the last 1 year, much higher than market (S&P/TSX 60) returns of 19.10%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Alvopetro 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 Alvopetro Energy Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Alvopetro Energy Ltd.

40.46%

0.91

30.07%

S&P/TSX 60

19.1%

1.25

15.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

132.38%

EBIT Growth (5y)

56.55%

EBIT to Interest (avg)

14.53

Debt to EBITDA (avg)

0.15

Net Debt to Equity (avg)

-0.19

Sales to Capital Employed (avg)

0.60

Tax Ratio

14.36%

Dividend Payout Ratio

82.89%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

40.50%

ROE (avg)

28.03%

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

1.85

EV to EBIT

6.03

EV to EBITDA

4.32

EV to Capital Employed

2.00

EV to Sales

3.23

PEG Ratio

Dividend Yield

ROCE (Latest)

33.16%

ROE (Latest)

24.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly 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

9What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 3,152.44

NET SALES(Q)

Highest at CAD 18.48 MM

OPERATING PROFIT(Q)

Highest at CAD 14.31 MM

OPERATING PROFIT MARGIN(Q)

Highest at 77.45 %

PRE-TAX PROFIT(Q)

At CAD 11.01 MM has Grown at 51.93%

NET PROFIT(Q)

At CAD 9.45 MM has Grown at 52.3%

-2What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 7.95% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -8.1 %

Here's what is working for Alvopetro Energy Ltd.

Interest Coverage Ratio

Highest at 3,152.44

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at CAD 18.48 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 14.31 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 77.45 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At CAD 11.01 MM has Grown at 51.93%

over average net sales of the previous four periods of CAD 7.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 9.45 MM has Grown at 52.3%

over average net sales of the previous four periods of CAD 6.21 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

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

Debt-Equity Ratio

Highest at -8.1 %

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

Raw Material Cost

Grown by 7.95% (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