Tourmaline Oil Corp. (TOU) 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 Tourmaline Oil Corp. ?

Strong Long Term Fundamental Strength with a 66.83% CAGR growth in Operating Profits

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 54.83
The company has been able to generate a Return on Capital Employed (avg) of 16.78% signifying high profitability per unit of total capital (equity and debt)

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

OPERATING CASH FLOW(Y) Lowest at CAD 3,226.51 MM
RAW MATERIAL COST(Y) Grown by 6.31% (YoY)
PRE-TAX PROFIT(Q) At CAD 325.89 MM has Fallen at -35.71%

With ROE of 9.28%, it has a fair valuation with a 1.40 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 6.53%, its profits have fallen by -9.8%

Majority shareholders : Mutual Funds

Underperformed the market in the last 1 year

The stock has generated a return of 6.53% in the last 1 year, much lower 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 Tourmaline Oil 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 Tourmaline Oil Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tourmaline Oil Corp.

0.88%

-0.21

27.51%

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)

23.51%

EBIT Growth (5y)

66.83%

EBIT to Interest (avg)

54.83

Debt to EBITDA (avg)

0.36

Net Debt to Equity (avg)

0.08

Sales to Capital Employed (avg)

0.39

Tax Ratio

24.35%

Dividend Payout Ratio

37.28%

Pledged Shares

Institutional Holding

0.12%

ROCE (avg)

16.78%

ROE (avg)

16.28%

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

1.37

EV to EBIT

18.08

EV to EBITDA

8.05

EV to Capital Employed

1.34

EV to Sales

4.34

PEG Ratio

Dividend Yield

ROCE (Latest)

7.40%

ROE (Latest)

9.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

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

3What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at CAD 8.68

EPS(Q)

Highest at CAD 1.35

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 3,226.51 MM

RAW MATERIAL COST(Y)

Grown by 6.31% (YoY

PRE-TAX PROFIT(Q)

At CAD 325.89 MM has Fallen at -35.71%

NET PROFIT(Q)

At CAD 246.09 MM has Fallen at -36.59%

Here's what is working for Tourmaline Oil Corp.

Dividend per share

Highest at CAD 8.68 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

EPS

Highest at CAD 1.35

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Depreciation

Highest at CAD 429.91 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Tourmaline Oil Corp.

Operating Cash Flow

Lowest at CAD 3,226.51 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)

Pre-Tax Profit

At CAD 325.89 MM has Fallen at -35.71%

over average net sales of the previous four periods of CAD 506.92 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 246.09 MM has Fallen at -36.59%

over average net sales of the previous four periods of CAD 388.08 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Raw Material Cost

Grown by 6.31% (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