Advantage Energy Ltd.
Advantage Energy Ltd. Fundamental Analysis
Advantage Energy Ltd. (AAV.TO) shows weak financial fundamentals with a PE ratio of 35.12, profit margin of 7.80%, and ROE of 3.19%. The company generates $0.7B in annual revenue with moderate year-over-year growth of 7.99%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AAV.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakAAV.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateAAV.TO shows balanced valuation metrics.
Growth Score
ModerateAAV.TO shows steady but slowing expansion.
Financial Health Score
ModerateAAV.TO shows balanced financial health with some risks.
Profitability Score
WeakAAV.TO struggles to sustain strong margins.
Key Financial Metrics
Is AAV.TO Expensive or Cheap?
P/E Ratio
AAV.TO trades at 35.12 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AAV.TO's PEG of -3.16 indicates potential undervaluation.
Price to Book
The market values Advantage Energy Ltd. at 1.10 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.75 times EBITDA. This is generally considered low.
How Well Does AAV.TO Make Money?
Net Profit Margin
For every $100 in sales, Advantage Energy Ltd. keeps $7.80 as profit after all expenses.
Operating Margin
Core operations generate 14.33 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.19 in profit for every $100 of shareholder equity.
ROA
Advantage Energy Ltd. generates $1.73 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Advantage Energy Ltd. generates strong operating cash flow of $357.49M, reflecting robust business health.
Free Cash Flow
Advantage Energy Ltd. generates weak or negative free cash flow of $-33.57M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.20 in free cash annually.
FCF Yield
AAV.TO converts -1.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.16
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.52
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How AAV.TO Stacks Against Its Sector Peers
| Metric | AAV.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.12 | 21.23 | Worse (Expensive) |
| ROE | 3.19% | 945.00% | Weak |
| Net Margin | 7.80% | -60038.00% (disorted) | Weak |
| Debt/Equity | 0.52 | -0.49 (disorted) | Distorted |
| Current Ratio | 0.39 | 6.45 | Weak Liquidity |
| ROA | 1.73% | -11001215.00% (disorted) | Weak |
AAV.TO outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Advantage Energy Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
148.39%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
200.29%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
58.69%
Industry Style: Cyclical, Value, Commodity
High Growth