Topaz Energy Corp.
Topaz Energy Corp. Fundamental Analysis
Topaz Energy Corp. (TPZ.TO) shows weak financial fundamentals with a PE ratio of 37.16, profit margin of 39.18%, and ROE of 9.77%. The company generates $0.3B in annual revenue with weak year-over-year growth of -2.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TPZ.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakTPZ.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateTPZ.TO shows balanced valuation metrics.
Growth Score
WeakTPZ.TO faces weak or negative growth trends.
Financial Health Score
ExcellentTPZ.TO maintains a strong and stable balance sheet.
Profitability Score
ModerateTPZ.TO maintains healthy but balanced margins.
Key Financial Metrics
Is TPZ.TO Expensive or Cheap?
P/E Ratio
TPZ.TO trades at 37.16 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TPZ.TO's PEG of 0.28 indicates potential undervaluation.
Price to Book
The market values Topaz Energy Corp. at 3.15 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.99 times EBITDA. This signals the market has high growth expectations.
How Well Does TPZ.TO Make Money?
Net Profit Margin
For every $100 in sales, Topaz Energy Corp. keeps $39.18 as profit after all expenses.
Operating Margin
Core operations generate 60.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.77 in profit for every $100 of shareholder equity.
ROA
Topaz Energy Corp. generates $5.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Topaz Energy Corp. generates strong operating cash flow of $309.99M, reflecting robust business health.
Free Cash Flow
Topaz Energy Corp. generates strong free cash flow of $261.07M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.69 in free cash annually.
FCF Yield
TPZ.TO converts 5.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
37.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
14.62
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
11.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How TPZ.TO Stacks Against Its Sector Peers
| Metric | TPZ.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 37.16 | 21.17 | Worse (Expensive) |
| ROE | 9.77% | 943.00% | Weak |
| Net Margin | 39.18% | -75302.00% (disorted) | Strong |
| Debt/Equity | 0.38 | -0.48 (disorted) | Distorted |
| Current Ratio | 11.26 | 6.33 | Strong Liquidity |
| ROA | 5.74% | -10948340.00% (disorted) | Weak |
TPZ.TO outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Topaz Energy Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
129.73%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
4345.24%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
1072.98%
Industry Style: Cyclical, Value, Commodity
High Growth