ScoreWhy is Parex Resources, Inc. ?
1
High Management Efficiency with a high ROE of 23.16%
2
Company has very low debt and has enough cash to service the debt requirements
3
The company has declared negative results for the last 13 consecutive quarters
- INTEREST COVERAGE RATIO(Q) Lowest at 2,960.38
- PRE-TAX PROFIT(Q) Lowest at CAD 56.06 MM
- NET PROFIT(Q) Lowest at CAD 10.8 MM
4
With ROE of 9.67%, it has a very attractive valuation with a 0.94 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 71.48%, its profits have fallen by -12%
5
Market Beating Performance
- The stock has generated a return of 71.48% in the last 1 year, much higher than market (S&P/TSX 60) returns of 29.60%
Real-Time Research ReportHow 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.
71.48%
0.45
39.73%
S&P/TSX 60
29.6%
2.31
12.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.95%
EBIT Growth (5y)
2.47%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.02
Sales to Capital Employed (avg)
0.53
Tax Ratio
67.83%
Dividend Payout Ratio
41.99%
Pledged Shares
0
Institutional Holding
2.91%
ROCE (avg)
38.16%
ROE (avg)
23.16%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
0.94
EV to EBIT
8.02
EV to EBITDA
4.18
EV to Capital Employed
0.94
EV to Sales
2.06
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
11.73%
ROE (Latest)
9.67%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 586.89%
RAW MATERIAL COST(Y)
Fallen by 1.14% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 150.93 times
-26What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 2,960.38
PRE-TAX PROFIT(Q)
Lowest at CAD 56.06 MM
NET PROFIT(Q)
Lowest at CAD 10.8 MM
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.95 times
INTEREST(Q)
Highest at CAD 5 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 45.68 %
EPS(Q)
Lowest at CAD 0.07
Here's what is working for Parex Resources, Inc.
Inventory Turnover Ratio
Highest at 150.93 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend Payout Ratio
Highest at 586.89%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by 1.14% (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 Parex Resources, Inc.
Interest Coverage Ratio
Lowest at 2,960.38 and Fallen
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Profit
At CAD 10.8 MM has Fallen at -88.19%
over average net sales of the previous four periods of CAD 91.46 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CAD MM)
Interest
At CAD 5 MM has Grown at 42.6%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CAD MM)
Pre-Tax Profit
Lowest at CAD 56.06 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CAD MM)
Net Profit
Lowest at CAD 10.8 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CAD MM)
Interest
Highest at CAD 5 MM
in the last five periods and Increased by 42.6% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CAD MM)
Operating Profit Margin
Lowest at 45.68 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
At CAD 56.06 MM has Fallen at -33.53%
over average net sales of the previous four periods of CAD 84.34 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CAD MM)
EPS
Lowest at CAD 0.07
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CAD)
Debtors Turnover Ratio
Lowest at 4.95 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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