Journey Energy Inc.
Journey Energy Inc. Fundamental Analysis
Journey Energy Inc. (JOY.TO) shows moderate financial fundamentals with a PE ratio of 14.23, profit margin of 13.26%, and ROE of 7.54%. The company generates $0.2B in annual revenue with moderate year-over-year growth of 9.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze JOY.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakJOY.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentJOY.TO trades at attractive valuation levels.
Growth Score
ModerateJOY.TO shows steady but slowing expansion.
Financial Health Score
ModerateJOY.TO shows balanced financial health with some risks.
Profitability Score
WeakJOY.TO struggles to sustain strong margins.
Key Financial Metrics
Is JOY.TO Expensive or Cheap?
P/E Ratio
JOY.TO trades at 14.23 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, JOY.TO's PEG of 0.47 indicates potential undervaluation.
Price to Book
The market values Journey Energy Inc. at 1.04 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.14 times EBITDA. This is generally considered low.
How Well Does JOY.TO Make Money?
Net Profit Margin
For every $100 in sales, Journey Energy Inc. keeps $13.26 as profit after all expenses.
Operating Margin
Core operations generate 12.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.54 in profit for every $100 of shareholder equity.
ROA
Journey Energy Inc. generates $4.50 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Journey Energy Inc. generates strong operating cash flow of $50.33M, reflecting robust business health.
Free Cash Flow
Journey Energy Inc. generates weak or negative free cash flow of $-5.71M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.08 in free cash annually.
FCF Yield
JOY.TO converts -1.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.23
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.47
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How JOY.TO Stacks Against Its Sector Peers
| Metric | JOY.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.23 | 21.23 | Better (Cheaper) |
| ROE | 7.54% | 945.00% | Weak |
| Net Margin | 13.26% | -60038.00% (disorted) | Strong |
| Debt/Equity | 0.14 | -0.49 (disorted) | Distorted |
| Current Ratio | 0.65 | 6.45 | Weak Liquidity |
| ROA | 4.50% | -11001215.00% (disorted) | Weak |
JOY.TO outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Journey Energy Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
20.37%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
110.57%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-17.31%
Industry Style: Cyclical, Value, Commodity
Declining