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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Canadian Natural Resources Ltd.

Topaz Energy Corp.

ARC Resources Ltd.

Parex Resources, Inc.

MEG Energy Corp.

Advantage Energy Ltd.

Cardinal Energy Ltd.

Obsidian Energy Ltd.

Tourmaline Oil Corp.

Crew Energy, Inc.

Vermilion Energy, Inc.

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 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 Tourmaline Oil Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tourmaline Oil Corp.

5.14%

-0.21

27.51%

S&P/TSX 60

23.72%

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)

22.40%

EBIT Growth (5y)

48.06%

EBIT to Interest (avg)

54.83

Debt to EBITDA (avg)

0.36

Net Debt to Equity (avg)

0.08

Sales to Capital Employed (avg)

0.35

Tax Ratio

24.35%

Dividend Payout Ratio

290.57%

Pledged Shares

Institutional Holding

0.18%

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

1.67

EV to EBIT

398.74

EV to EBITDA

8.93

EV to Capital Employed

1.60

EV to Sales

4.76

PEG Ratio

Dividend Yield

ROCE (Latest)

0.40%

ROE (Latest)

3.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

3What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at CAD 8.08

DIVIDEND PAYOUT RATIO(Y)

Highest at 101.61%

-10What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 19.51% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 10.85 %

OPERATING PROFIT MARGIN(Q)

Lowest at 47.76 %

PRE-TAX PROFIT(Q)

Lowest at CAD 285.15 MM

NET PROFIT(Q)

Lowest at CAD 215.42 MM

EPS(Q)

Lowest at CAD 0.49

Here's what is working for Tourmaline Oil Corp.

Dividend per share

Highest at CAD 8.08 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Dividend Payout Ratio

Highest at 101.61%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at CAD 469.54 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.

Pre-Tax Profit

At CAD 285.15 MM has Fallen at -42.65%

over average net sales of the previous four periods of CAD 497.18 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 215.42 MM has Fallen at -43.67%

over average net sales of the previous four periods of CAD 382.42 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Operating Profit Margin

Lowest at 47.76 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CAD 285.15 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD 215.42 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS

Lowest at CAD 0.49

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Debt-Equity Ratio

Highest at 10.85 %

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 19.51% (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