PetroTal Corp. (TAL) 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.

NuVista Energy Ltd.

Birchcliff Energy Ltd.

Athabasca Oil Corp.

Baytex Energy Corp.

Headwater Exploration, Inc.

PetroTal Corp.

Kelt Exploration Ltd.

Tamarack Valley Energy Ltd.

Africa Oil Corp.

Paramount Resources Ltd.

Why is PetroTal Corp. ?

High Management Efficiency with a high ROE of 22.02%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 16.12

Healthy long term growth as Net Sales has grown by an annual rate of 34.11% and Operating profit at 52.90%

With a fall in Operating Profit of -14.4%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 4 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at CAD 164.16 MM
INTEREST(9M) At CAD 6.2 MM has Grown at 24.15%
ROCE(HY) Lowest at 5.24%

With ROE of 5.34%, it has a attractive valuation with a 0.73 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -26.09%, its profits have fallen by -72.3%

Majority shareholders : FIIs

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -26.09% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

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 PetroTal Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

PetroTal Corp.

-100.0%

-0.54

61.02%

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)

34.11%

EBIT Growth (5y)

52.90%

EBIT to Interest (avg)

16.12

Debt to EBITDA (avg)

0.33

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

0.57

Tax Ratio

26.85%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.08%

ROCE (avg)

33.30%

ROE (avg)

22.02%

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

0.73

EV to EBIT

7.56

EV to EBITDA

2.61

EV to Capital Employed

0.70

EV to Sales

1.36

PEG Ratio

Dividend Yield

ROCE (Latest)

9.20%

ROE (Latest)

5.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

2What is working for the Company

CASH AND EQV(HY)

Highest at CAD 342.99 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 12.16 times

-27What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 164.16 MM

INTEREST(9M)

At CAD 6.2 MM has Grown at 24.15%

ROCE(HY)

Lowest at 5.24%

NET PROFIT(Q)

At CAD 10.71 MM has Fallen at -42.52%

RAW MATERIAL COST(Y)

Grown by 21.33% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -4.33 %

NET SALES(Q)

At CAD 81.75 MM has Fallen at -16.31%

PRE-TAX PROFIT(Q)

At CAD 18.44 MM has Fallen at -28.22%

Here's what is working for PetroTal Corp.

Cash and Eqv

Highest at CAD 342.99 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 12.16 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 PetroTal Corp.

Net Profit

At CAD 10.71 MM has Fallen at -42.52%

over average net sales of the previous four periods of CAD 18.63 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Interest

At CAD 6.2 MM has Grown at 24.15%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Operating Cash Flow

Lowest at CAD 164.16 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

At CAD 81.75 MM has Fallen at -16.31%

over average net sales of the previous four periods of CAD 97.68 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Pre-Tax Profit

At CAD 18.44 MM has Fallen at -28.22%

over average net sales of the previous four periods of CAD 25.68 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Debt-Equity Ratio

Highest at -4.33 %

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

Raw Material Cost

Grown by 21.33% (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