Whitecap Resources Inc. Fundamental Analysis (TSX: WCP.TO)
Whitecap Resources Inc. Fundamental Analysis (TSX: WCP.TO)
Whitecap Resources Inc. (TSX: WCP.TO) shows weak financial fundamentals with a PE ratio of 21.49, profit margin of 13.32%, and ROE of 7.70%. The company generates $6.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WCP.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakWCP.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentWCP.TO trades at attractive valuation levels.
Growth Score
ModerateWCP.TO shows steady but slowing expansion.
Financial Health Score
ModerateWCP.TO shows balanced financial health with some risks.
Profitability Score
WeakWCP.TO struggles to sustain strong margins.
Key Financial Metrics
Is WCP.TO Expensive or Cheap?
P/E Ratio
WCP.TO trades at 21.49 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, WCP.TO's PEG of -0.43 indicates potential undervaluation.
Price to Book
The market values Whitecap Resources Inc. at 1.85 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.91 times EBITDA. This is generally considered low.
How Well Does WCP.TO Make Money?
Net Profit Margin
For every $100 in sales, Whitecap Resources Inc. keeps $13.32 as profit after all expenses.
Operating Margin
Core operations generate 24.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.70 in profit for every $100 of shareholder equity.
ROA
Whitecap Resources Inc. generates $4.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Whitecap Resources Inc. generates strong operating cash flow of $3.53B, reflecting robust business health.
Free Cash Flow
Whitecap Resources Inc. generates strong free cash flow of $1.17B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.97 in free cash annually.
FCF Yield
WCP.TO converts 5.87% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.49
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.54
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
0.09
vs 25 benchmark
How WCP.TO Stacks Against Its Sector Peers
| Metric | WCP.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.49 | 22.19 | Neutral |
| ROE | 7.70% | 1142.00% | Weak |
| Net Margin | 13.32% | 1205.00% | Weak |
| Debt/Equity | 0.33 | 2.82 | Strong (Low Leverage) |
| Current Ratio | 0.54 | 3.03 | Weak Liquidity |
| ROA | 4.29% | 477.00% | Weak |
WCP.TO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Whitecap Resources Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Commodity
EPS CAGR
N/A
Industry Style: Cyclical, Value, Commodity
FCF CAGR
N/A
Industry Style: Cyclical, Value, Commodity