Frontera Energy Corp. (FEC) 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.

ARC Resources Ltd.

Cardinal Energy Ltd.

MEG Energy Corp.

Advantage Energy Ltd.

Parex Resources, Inc.

Obsidian Energy Ltd.

Tourmaline Oil Corp.

Vermilion Energy, Inc.

Crew Energy, Inc.

Frontera Energy Corp.

Why is Frontera Energy Corp. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.80% over the last 5 years

With a fall in Operating Profit of -86.6%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 2 consecutive quarters
NET PROFIT(HY) At CAD -42.39 MM has Grown at -179.34%
OPERATING CASH FLOW(Y) Lowest at CAD 414.82 MM
ROCE(HY) Lowest at -90.98%

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 127.07%, its profits have fallen by -59.2%

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 Frontera Energy Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Frontera Energy Corp.

127.07%

1.57

58.02%

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)

5.80%

EBIT Growth (5y)

13.18%

EBIT to Interest (avg)

3.82

Debt to EBITDA (avg)

0.77

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

0.61

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

10.13%

ROE (avg)

7.29%

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

1.38

EV to EBIT

-188.38

EV to EBITDA

4.44

EV to Capital Employed

1.30

EV to Sales

1.28

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.69%

ROE (Latest)

3.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bearish

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

2What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 27.51 times

PRE-TAX PROFIT(Q)

At CAD -0.89 MM has Grown at 94.62%

-29What is not working for the Company

NET PROFIT(HY)

At CAD -42.39 MM has Grown at -179.34%

OPERATING CASH FLOW(Y)

Lowest at CAD 414.82 MM

ROCE(HY)

Lowest at -90.98%

INTEREST COVERAGE RATIO(Q)

Lowest at 43.87

RAW MATERIAL COST(Y)

Grown by 13.11% (YoY

CASH AND EQV(HY)

Lowest at CAD 343.36 MM

NET SALES(Q)

Lowest at CAD 17.36 MM

OPERATING PROFIT(Q)

Lowest at CAD 3.45 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 19.86 %

Here's what is working for Frontera Energy Corp.

Pre-Tax Profit

At CAD -0.89 MM has Grown at 94.62%

over average net sales of the previous four periods of CAD -16.52 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Inventory Turnover Ratio

Highest at 27.51 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Frontera Energy Corp.

Net Profit

At CAD -42.39 MM has Grown at -179.34%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Net Sales

At CAD 17.36 MM has Fallen at -95.09%

over average net sales of the previous four periods of CAD 353.41 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CAD MM)

Interest Coverage Ratio

Lowest at 43.87

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CAD 414.82 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Net Sales

Lowest at CAD 17.36 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Operating Profit

Lowest at CAD 3.45 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at 19.86 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CAD 343.36 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 13.11% (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