Tamarack Valley Energy Ltd. Fundamental Analysis (TSX: TVE.TO)
Tamarack Valley Energy Ltd. Fundamental Analysis (TSX: TVE.TO)
Tamarack Valley Energy Ltd. (TSX: TVE.TO) shows weak financial fundamentals with a PE ratio of 191.77, profit margin of 1.50%, and ROE of 1.34%. The company generates $1.6B in annual revenue with weak year-over-year growth of -22.62%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 9.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TVE.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakTVE.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateTVE.TO shows balanced valuation metrics.
Growth Score
WeakTVE.TO faces weak or negative growth trends.
Financial Health Score
ExcellentTVE.TO maintains a strong and stable balance sheet.
Profitability Score
ModerateTVE.TO maintains healthy but balanced margins.
Key Financial Metrics
Is TVE.TO Expensive or Cheap?
P/E Ratio
TVE.TO trades at 191.77 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TVE.TO's PEG of -4.88 indicates potential undervaluation.
Price to Book
The market values Tamarack Valley Energy Ltd. at 3.53 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.65 times EBITDA. This signals the market has high growth expectations.
How Well Does TVE.TO Make Money?
Net Profit Margin
For every $100 in sales, Tamarack Valley Energy Ltd. keeps $1.50 as profit after all expenses.
Operating Margin
Core operations generate 39.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.34 in profit for every $100 of shareholder equity.
ROA
Tamarack Valley Energy Ltd. generates $0.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tamarack Valley Energy Ltd. generates strong operating cash flow of $894.04M, reflecting robust business health.
Free Cash Flow
Tamarack Valley Energy Ltd. generates strong free cash flow of $491.28M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.03 in free cash annually.
FCF Yield
TVE.TO converts 7.54% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
191.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.88
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.001
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How TVE.TO Stacks Against Its Sector Peers
| Metric | TVE.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 191.77 | 21.23 | Worse (Expensive) |
| ROE | 1.34% | 1266.00% | Weak |
| Net Margin | 1.50% | 1278.00% | Weak |
| Debt/Equity | 0.18 | -1.82 (disorted) | Distorted |
| Current Ratio | 2.30 | 2.24 | Strong Liquidity |
| ROA | 0.79% | 4418.00% | Weak |
TVE.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 Tamarack Valley Energy Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
169.73%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
94.81%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
176.35%
Industry Style: Cyclical, Value, Commodity
High Growth