Parex Resources, Inc. (PXT) 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

Canadian Natural Resources Ltd.

Topaz Energy Corp.

Parex Resources, Inc.

ARC Resources Ltd.

MEG Energy Corp.

Cardinal Energy Ltd.

Tourmaline Oil Corp.

Vermilion Energy, Inc.

Advantage Energy Ltd.

Crew Energy, Inc.

Obsidian Energy Ltd.

Why is Parex Resources, Inc. ?

High Management Efficiency with a high ROE of 23.16%

Company has very low debt and has enough cash to service the debt requirements

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

OPERATING CASH FLOW(Y) Lowest at CAD 669.89 MM
NET PROFIT(9M) At CAD 268.65 MM has Grown at -30.2%
NET SALES(Q) Lowest at CAD 288.28 MM

With ROE of 13.85%, it has a very attractive valuation with a 0.72 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 62.93%, its profits have fallen by -34.6%

Majority shareholders : Mutual Funds

Market Beating Performance

The stock has generated a return of 62.93% in the last 1 year, much higher than market (S&P/TSX 60) returns of 22.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Parex Resources, Inc. 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 Parex Resources, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Parex Resources, Inc.

-100.0%

-0.30

40.98%

S&P/TSX 60

19.1%

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)

5.78%

EBIT Growth (5y)

0.10%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

0.59

Tax Ratio

67.83%

Dividend Payout Ratio

186.65%

Pledged Shares

Institutional Holding

2.91%

ROCE (avg)

38.16%

ROE (avg)

23.16%

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

0.68

EV to EBIT

3.59

EV to EBITDA

2.17

EV to Capital Employed

0.67

EV to Sales

1.27

PEG Ratio

Dividend Yield

ROCE (Latest)

18.65%

ROE (Latest)

13.85%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

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

3What is working for the Company

NET PROFIT(HY)

At CAD 183.24 MM has Grown at 111.35%

-22What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 669.89 MM

NET PROFIT(9M)

At CAD 268.65 MM has Grown at -30.2%

NET SALES(Q)

Lowest at CAD 288.28 MM

INTEREST(Q)

At CAD 3.06 MM has Grown at 10.17%

RAW MATERIAL COST(Y)

Grown by 21.1% (YoY

OPERATING PROFIT(Q)

Lowest at CAD 163.74 MM

PRE-TAX PROFIT(Q)

Lowest at CAD 80.78 MM

Here's what is working for Parex Resources, Inc.

Net Profit

At CAD 183.24 MM has Grown at 111.35%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Here's what is not working for Parex Resources, Inc.

Operating Cash Flow

Lowest at CAD 669.89 MM and Fallen

In each year 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 288.28 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (CAD MM)

Net Sales

At CAD 288.28 MM has Fallen at -19.74%

over average net sales of the previous four periods of CAD 359.18 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CAD MM)

Interest

At CAD 3.06 MM has Grown at 10.17%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Pre-Tax Profit

At CAD 80.78 MM has Fallen at -40.52%

over average net sales of the previous four periods of CAD 135.81 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Operating Profit

Lowest at CAD 163.74 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Pre-Tax Profit

Lowest at CAD 80.78 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Raw Material Cost

Grown by 21.1% (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