PetroTal Corp. Fundamental Analysis (TSX: TAL.TO)
PetroTal Corp. (TSX: TAL.TO) shows weak financial fundamentals with a PE ratio of 23.93, profit margin of 6.47%, and ROE of 2.94%. The company generates $0.2B in annual revenue with weak year-over-year growth of -15.11%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 21.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TAL.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakTAL.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTAL.TO trades at attractive valuation levels.
Growth Score
WeakTAL.TO faces weak or negative growth trends.
Financial Health Score
ExcellentTAL.TO maintains a strong and stable balance sheet.
Profitability Score
ModerateTAL.TO maintains healthy but balanced margins.
Key Financial Metrics
Is TAL.TO Expensive or Cheap?
P/E Ratio
TAL.TO trades at 23.93 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TAL.TO's PEG of -0.42 indicates potential undervaluation.
Price to Book
The market values PetroTal Corp. at 0.69 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.34 times EBITDA. This is generally considered low.
How Well Does TAL.TO Make Money?
Net Profit Margin
For every $100 in sales, PetroTal Corp. keeps $6.47 as profit after all expenses.
Operating Margin
Core operations generate 25.37 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.94 in profit for every $100 of shareholder equity.
ROA
PetroTal Corp. generates $2.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PetroTal Corp. generates strong operating cash flow of $95.91M, reflecting robust business health.
Free Cash Flow
PetroTal Corp. generates strong free cash flow of $41.75M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.05 in free cash annually.
FCF Yield
TAL.TO converts 11.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.69
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.10
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
0.09
vs 25 benchmark
How TAL.TO Stacks Against Its Sector Peers
| Metric | TAL.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.93 | 21.23 | Worse (Expensive) |
| ROE | 2.94% | 1266.00% | Weak |
| Net Margin | 6.47% | 1278.00% | Weak |
| Debt/Equity | 0.14 | -1.82 (disorted) | Distorted |
| Current Ratio | 3.10 | 2.24 | Strong Liquidity |
| ROA | 2.01% | 4418.00% | Weak |
TAL.TO outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews PetroTal Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
276.52%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
2518.78%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
910.72%
Industry Style: Cyclical, Value, Commodity
High Growth