Pipestone Energy Corp. (PIPE) 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

Africa Oil Corp.

Peyto Exploration & Development Corp.

Athabasca Oil Corp.

NuVista Energy Ltd.

Paramount Resources Ltd.

Headwater Exploration, Inc.

Birchcliff Energy Ltd.

PetroTal Corp.

Pipestone Energy Corp.

Kelt Exploration Ltd.

Tamarack Valley Energy Ltd.

Why is Pipestone Energy Corp. ?

High Management Efficiency with a high ROCE of 17.47%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 5.76

Healthy long term growth as Net Sales has grown by an annual rate of 140.02% and Operating profit at 238.60%

The company has declared negative results in Dec'2024 after 4 consecutive positive quarters

INTEREST(Q) At CAD 60.6 MM has Grown at 15.87%
INTEREST COVERAGE RATIO(Q) Lowest at 603.63
RAW MATERIAL COST(Y) Grown by 29.08% (YoY)

With ROE of 10.31%, it has a very expensive valuation with a 0.96 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 33.22%, its profits have risen by 148.5% ; the PEG ratio of the company is 0.1

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 Pipestone Energy Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Pipestone Energy Corp.

42.64%

0.30

44.09%

S&P/TSX 60

19.1%

1.77

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

109.72%

EBIT Growth (5y)

141.64%

EBIT to Interest (avg)

5.70

Debt to EBITDA (avg)

1.41

Net Debt to Equity (avg)

0.50

Sales to Capital Employed (avg)

0.51

Tax Ratio

27.10%

Dividend Payout Ratio

26.97%

Pledged Shares

Institutional Holding

ROCE (avg)

38.66%

ROE (avg)

16.92%

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

1.34

EV to EBIT

9.32

EV to EBITDA

5.35

EV to Capital Employed

1.25

EV to Sales

2.33

PEG Ratio

1.37

Dividend Yield

ROCE (Latest)

13.41%

ROE (Latest)

10.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

1What is working for the Company

EPS(Q)

Highest at CAD 1.08

-15What is not working for the Company

INTEREST(Q)

At CAD 60.6 MM has Grown at 15.87%

INTEREST COVERAGE RATIO(Q)

Lowest at 603.63

RAW MATERIAL COST(Y)

Grown by 29.08% (YoY

NET SALES(Q)

Lowest at CAD 904.7 MM

OPERATING PROFIT(Q)

Lowest at CAD 365.8 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 40.43 %

PRE-TAX PROFIT(Q)

Lowest at CAD 143.7 MM

NET PROFIT(Q)

At CAD 115.35 MM has Fallen at -36.06%

Here's what is working for Pipestone Energy Corp.

EPS

Highest at CAD 1.08

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

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

Net Sales

At CAD 904.7 MM has Fallen at -26.2%

over average net sales of the previous four periods of CAD 1,225.85 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CAD MM)

Interest

At CAD 60.6 MM has Grown at 15.87%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest Coverage Ratio

Lowest at 603.63

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CAD 143.7 MM has Fallen at -42.28%

over average net sales of the previous four periods of CAD 248.98 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Sales

Lowest at CAD 904.7 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Operating Profit

Lowest at CAD 365.8 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at 40.43 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CAD 143.7 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 115.35 MM has Fallen at -36.06%

over average net sales of the previous four periods of CAD 180.42 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Raw Material Cost

Grown by 29.08% (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