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

Topaz Energy Corp.

ARC Resources Ltd.

Cardinal Energy Ltd.

Canadian Natural Resources Ltd.

MEG Energy Corp.

Advantage Energy Ltd.

Parex Resources, Inc.

Obsidian Energy Ltd.

Tourmaline Oil Corp.

Vermilion Energy, Inc.

Crew Energy, Inc.

Why is Tourmaline Oil Corp. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 54.83

Healthy long term growth as Net Sales has grown by an annual rate of 17.27% and Operating profit at -145.94%

Flat results in Mar 26

NET PROFIT(HY) At CAD -69.33 MM has Grown at -106.68%
ROCE(HY) Lowest at 4.5%
RAW MATERIAL COST(Y) Grown by 12.95% (YoY)

With ROE of 2.46%, it has a expensive valuation with a 1.54 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 -9.85%, its profits have fallen by -74.7%

Majority shareholders : Mutual Funds

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -9.85% 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 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.

-9.85%

-0.39

26.02%

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)

17.27%

EBIT Growth (5y)

-145.94%

EBIT to Interest (avg)

54.83

Debt to EBITDA (avg)

0.36

Net Debt to Equity (avg)

0.08

Sales to Capital Employed (avg)

0.33

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

1.54

EV to EBIT

-2006.94

EV to EBITDA

8.44

EV to Capital Employed

1.50

EV to Sales

4.43

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.07%

ROE (Latest)

2.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

9What is working for the Company

PRE-TAX PROFIT(Q)

At CAD 424.26 MM has Grown at 242.67%

INTEREST COVERAGE RATIO(Q)

Highest at 6,110.5

NET PROFIT(Q)

At CAD 328.72 MM has Grown at 161.33%

DEBT-EQUITY RATIO (HY)

Lowest at 7.14 %

EPS(Q)

Highest at CAD 1.69

-14What is not working for the Company

NET PROFIT(HY)

At CAD -69.33 MM has Grown at -106.68%

ROCE(HY)

Lowest at 4.5%

RAW MATERIAL COST(Y)

Grown by 12.95% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.54 times

Here's what is working for Tourmaline Oil Corp.

Pre-Tax Profit

At CAD 424.26 MM has Grown at 242.67%

over average net sales of the previous four periods of CAD 123.81 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Interest Coverage Ratio

Highest at 6,110.5

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

At CAD 328.72 MM has Grown at 161.33%

over average net sales of the previous four periods of CAD 125.79 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

EPS

Highest at CAD 1.69

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Debt-Equity Ratio

Lowest at 7.14 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

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

Debtors Turnover Ratio

Lowest at 7.54 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 12.95% (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