Gibson Energy Inc.
Gibson Energy Inc. Fundamental Analysis
Gibson Energy Inc. (GEI.TO) shows moderate financial fundamentals with a PE ratio of 24.86, profit margin of 1.85%, and ROE of 22.62%. The company generates $11.2B in annual revenue with moderate year-over-year growth of 6.95%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GEI.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakGEI.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGEI.TO trades at attractive valuation levels.
Growth Score
ModerateGEI.TO shows steady but slowing expansion.
Financial Health Score
ModerateGEI.TO shows balanced financial health with some risks.
Profitability Score
ModerateGEI.TO maintains healthy but balanced margins.
Key Financial Metrics
Is GEI.TO Expensive or Cheap?
P/E Ratio
GEI.TO trades at 24.86 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GEI.TO's PEG of 0.83 indicates potential undervaluation.
Price to Book
The market values Gibson Energy Inc. at 5.98 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.48 times EBITDA. This is generally considered low.
How Well Does GEI.TO Make Money?
Net Profit Margin
For every $100 in sales, Gibson Energy Inc. keeps $1.85 as profit after all expenses.
Operating Margin
Core operations generate 3.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.62 in profit for every $100 of shareholder equity.
ROA
Gibson Energy Inc. generates $4.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Gibson Energy Inc. generates limited operating cash flow of $402.27M, signaling weaker underlying cash strength.
Free Cash Flow
Gibson Energy Inc. generates weak or negative free cash flow of $217.61M, restricting financial flexibility.
FCF Per Share
Each share generates $1.27 in free cash annually.
FCF Yield
GEI.TO converts 4.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.83
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.46
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How GEI.TO Stacks Against Its Sector Peers
| Metric | GEI.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.86 | 21.17 | Worse (Expensive) |
| ROE | 22.62% | 943.00% | Weak |
| Net Margin | 1.85% | -75302.00% (disorted) | Weak |
| Debt/Equity | 3.46 | -0.48 (disorted) | Distorted |
| Current Ratio | 1.05 | 6.33 | Neutral |
| ROA | 4.27% | -10948340.00% (disorted) | Weak |
GEI.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 Gibson Energy Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
43.56%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-25.62%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
35.13%
Industry Style: Cyclical, Value, Commodity
High Growth