Whitecap Resources, Inc. (WCP) 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

Suncor Energy, Inc.

Whitecap Resources, Inc.

Peyto Exploration & Development Corp.

Athabasca Oil Corp.

Baytex Energy Corp.

Crescent Point Energy Corp.

NuVista Energy Ltd.

Cenovus Energy, Inc.

Paramount Resources Ltd.

Imperial Oil Ltd.

Enerplus Corp.

Why is Whitecap Resources, Inc. ?

High Management Efficiency with a high ROCE of 16.03%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 15.12

Healthy long term growth as Net Sales has grown by an annual rate of 31.16% and Operating profit at 81.51%

With ROE of 8.11%, it has a very attractive valuation with a 1.22 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 8.22%, its profits have risen by 14.8% ; the PEG ratio of the company is 0.9

Majority shareholders : Mutual Funds

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Whitecap Resources, Inc. 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 Whitecap Resources, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Whitecap Resources, Inc.

16.31%

0.21

35.67%

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)

37.58%

EBIT Growth (5y)

93.91%

EBIT to Interest (avg)

15.12

Debt to EBITDA (avg)

0.97

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

0.46

Tax Ratio

24.53%

Dividend Payout Ratio

53.43%

Pledged Shares

Institutional Holding

0.47%

ROCE (avg)

16.03%

ROE (avg)

14.29%

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

1.16

EV to EBIT

15.79

EV to EBITDA

7.27

EV to Capital Employed

1.13

EV to Sales

4.19

PEG Ratio

0.85

Dividend Yield

ROCE (Latest)

7.14%

ROE (Latest)

8.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

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

5What is working for the Company

NET SALES(Q)

Highest at CAD 1,261 MM

OPERATING PROFIT(Q)

Highest at CAD 700 MM

-9What is not working for the Company

ROCE(HY)

Lowest at 11.76%

RAW MATERIAL COST(Y)

Grown by 23.52% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 31.86 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.08%

INTEREST(Q)

Highest at CAD 33.2 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 55.51 %

Here's what is working for Whitecap Resources, Inc.

Net Sales

At CAD 1,261 MM has Grown at 48.12%

over average net sales of the previous four periods of CAD 851.33 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CAD MM)

Net Sales

Highest at CAD 1,261 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 700 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Depreciation

Highest at CAD 410.7 MM

in the last five periods

MOJO Watch

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

Depreciation (CAD MM)

Depreciation

At CAD 410.7 MM has Grown at 61.12%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (CAD MM)

Here's what is not working for Whitecap Resources, Inc.

Interest

At CAD 33.2 MM has Grown at 172.13%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest

Highest at CAD 33.2 MM

in the last five periods and Increased by 172.13% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Operating Profit Margin

Lowest at 55.51 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 31.86 %

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

Debtors Turnover Ratio

Lowest at 6.08%

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 23.52% (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