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.

Headwater Exploration, Inc.

Tamarack Valley Energy Ltd.

Athabasca Oil Corp.

NuVista Energy Ltd.

Birchcliff Energy Ltd.

Baytex Energy Corp.

PetroTal Corp.

Kelt Exploration 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 0.57 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 -32.88%, its profits have fallen by -72.3%

Majority shareholders : FIIs

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -32.88% 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 hold?

Overall Portfolio exposure to PetroTal Corp. 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 PetroTal Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

PetroTal Corp.

-32.86%

-0.56

63.32%

S&P/TSX 60

29.63%

2.33

12.07%

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)

17.73

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

0.57

Tax Ratio

34.25%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.08%

ROCE (avg)

34.55%

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

0.57

EV to EBIT

5.56

EV to EBITDA

1.92

EV to Capital Employed

0.51

EV to Sales

1.00

PEG Ratio

Dividend Yield

ROCE (Latest)

9.20%

ROE (Latest)

5.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

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

NET PROFIT(Q)

At CAD 22.25 MM has Grown at 124.96%

RAW MATERIAL COST(Y)

Fallen by -48.29% (YoY

CASH AND EQV(HY)

Highest at CAD 346.03 MM

OPERATING PROFIT(Q)

Highest at CAD 65.43 MM

OPERATING PROFIT MARGIN(Q)

Highest at 72.92 %

PRE-TAX PROFIT(Q)

Highest at CAD 38.23 MM

-26What is not working for the Company

NET PROFIT(HY)

At CAD 32.96 MM has Grown at -52.58%

OPERATING CASH FLOW(Y)

Lowest at CAD 133.02 MM

NET SALES(HY)

At CAD 171.48 MM has Grown at -28.04%

ROCE(HY)

Lowest at 2.93%

INTEREST(Q)

At CAD 2.49 MM has Grown at 27.36%

Here's what is working for PetroTal Corp.

Pre-Tax Profit

At CAD 38.23 MM has Grown at 182.83%

over average net sales of the previous four periods of CAD 13.52 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 22.25 MM has Grown at 124.96%

over average net sales of the previous four periods of CAD 9.89 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Operating Profit

Highest at CAD 65.43 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 72.92 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CAD 38.23 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Cash and Eqv

Highest at CAD 346.03 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -48.29% (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 PetroTal Corp.

Interest

At CAD 2.49 MM has Grown at 27.36%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Net Sales

At CAD 171.48 MM has Grown at -28.04%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Operating Cash Flow

Lowest at CAD 133.02 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)