PMG.TO  Petrominerales Ltd

Exchange

TSX

Sector

Energy

Industry

Market Cap.

1.043B

Vuru Grade

30.50/100

Current Price

$12.26
+0.01 (+0.08%)

Growth Price

$8.39
Overvalued by 31.60%

Company Metrics

  • P/E 30.3
  • P/S 1.14
  • P/B 1.07
  • EPS 0
  • Cash ROIC -4.71%
  • Cash Ratio 0.76
  • Dividend 0.375 / 3.06%
  • Avg. Vol. 806,675.00
  • Shares 121.38M
  • Market Cap. 1.043B

Company Description

Petrominerales Ltd. engages in the exploration, development, and production of crude oil in Colombia and Peru. It holds 15 exploration blocks covering 2.0 million acres in Colombia; and 5 blocks in Peru. The company was founded in 1996 and is headquartered in Bogota, Colombia.... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

There is no news available at this time.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for PMG.TO to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate PMG.TO's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$12.26 Current Price

$8.39 Growth Price (DCF)

Overvalued by 31.60%


Growth Rate Assumed by Market: 500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


PMG.TO's most recent year of (normalized) free cash flow is negative. This is the base number for forward projections. This means that if you increase the growth rate, the amount of negative FCF grows, thereby decreasing the price.

Show Free Cash Flow numbers

$30.45 Book Price

Undervalued by 148.39%


Very Poor Cash Return on Invested Capital over the past 5 years

PMG.TO has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

PMG.TO has lost $4.71 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20072008200920102011
Free Cash Flow -38.42M -58.40M -1.86M 72.92M -4.20M
divided by
Invested Capital 202.46M 420.81M 474.85M 732.61M 1.54B
Cash ROIC -18.97% -13.88% -0.39% 9.95% -0.27%

Excellent Return on Equity over the past 5 years

Over the past 5 years, PMG.TO has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

PMG.TO has generated $28.74 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20072008200920102011
Net Income 47.55M 131.14M 100.15M 239.70M 493.20M
divided by
Stockholders' Equity 279.07M 403.28M 494.98M 897.32M 1.04B
Return on Equity 17.04% 32.52% 20.23% 26.71% 47.20%

Poor Business Performance over the past 9 years

PMG.TO's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

PMG.TO has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
200320042005200620072008200920102011
Free Cash Flow - -1.92M -23.63M -43.35M -38.42M -58.40M -1.86M 72.92M -4.20M

Weak Balance Sheet

PMG.TO's financial position is not ideal. The key is to check whether PMG.TO is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
200320042005200620072008200920102011
Cash - 74,173.00 112,999.00 28.63M 171.10M 82.17M 61.60M 723.28M 295.40M
Current Assets - 1.79M 2.38M 30.64M 178.11M 111.62M 120.34M 889.21M 462.50M
Total Assets - 58.91M 88.15M 181.41M 441.46M 565.70M 720.12M 1.76B 2.23B
Current Liabilities - 3.92M 17.58M 19.17M 67.90M 62.72M 183.66M 309.00M 388.70M
Total Liabilities - 4.27M 18.12M 20.10M 162.40M 162.42M 225.14M 867.56M 1.18B
Stockholder' Equity - 54.64M 70.03M 161.30M 279.07M 403.28M 494.98M 897.32M 1.04B
Current Ratio - 0.46 0.14 1.60 2.62 1.78 0.66 2.88 1.19
TL-to-TA - 0.07 0.21 0.11 0.37 0.29 0.31 0.49 0.53

Consistent Reinvestment of Profits over the past 9 years

PMG.TO has consistently retained profits. This may put PMG.TO in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, PMG.TO can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
200320042005200620072008200920102011
Retained Earnings - -12.29M -10.29M 5.84M 53.39M 177.80M 263.51M 465.91M 712.20M
Retained Earnings Growth - - 16.28% 156.80% 813.99% 233.01% 48.21% 76.81% 52.86%

Erratic Net Profit Margins over the past 9 years

PMG.TO has had highly erratic net profit margins which are a great cause for concern. This company may operate in a highly volatile industry, or it may just have poor performance. Look at reasons for this inconsistency to understand if there is any reason to look past it.
Figures in USD. Fiscal year ends in December
200320042005200620072008200920102011
Net Income -12.88M 1.54M 2.33M 14.80M 47.55M 131.14M 100.15M 239.70M 493.20M
divided by
Revenue 9.75M 18.11M 17.27M 43.68M 121.80M 343.18M 421.84M 1.05B 1.42B
Net Profit Margin -132.11% 8.52% 13.52% 33.88% 39.04% 38.21% 23.74% 22.83% 34.72%

Strong Pricing Power over the past 9 years

PMG.TO has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$76.73 of every $100 worth of sales have been Gross Profit, on average over the past 9 years.
Figures in USD. Fiscal year ends in December
200320042005200620072008200920102011
Gross Profit 9.75M 13.48M 12.83M 34.67M 97.94M 264.02M 313.90M 673.51M 946.00M
divided by
Revenue 9.75M 18.11M 17.27M 43.68M 121.80M 343.18M 421.84M 1.05B 1.42B
Gross Margin 100.00% 74.42% 74.30% 79.38% 80.41% 76.93% 74.41% 64.16% 66.59%

High Capital Intensity over the past 9 years

PMG.TO spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

476.74% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
200320042005200620072008200920102011
Capital Expenditure - 11.59M 32.89M 73.37M 143.02M 267.76M 280.88M 510.23M 787.10M
divided by
Net Income -12.88M 1.54M 2.33M 14.80M 47.55M 131.14M 100.15M 239.70M 493.20M
Capital Expenditure Ratio - 751.27% 1,409.02% 495.78% 300.78% 204.17% 280.47% 212.87% 159.59%

No Dividend History over the past 9 years

PMG.TO has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
200320042005200620072008200920102011
Dividend Paid - - - - - - - - -
divided by
Shares Outstanding - 95.00M 95.00M 87.05M 97.04M 102.08M 99.99M 108.57M 121.38M
Dividend Paid Per Share - - - - - - - - -
Price at Year End - - - - 19.26 5.58 18.56 32.12 16.56
Dividend Yield - - - - - - - - -

History of Stock Buybacks over the past 9 years

PMG.TO has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
200320042005200620072008200920102011
Shares Outstanding - 95.00M 95.00M 87.05M 97.04M 102.08M 99.99M 108.57M 121.38M
Stock Bought Back - -100.00% - 9.14% -10.30% -4.94% 2.10% -7.90% -10.56%
Share your thoughts about PMG.TO

Sign Up or Log In to start contributing!


Discussion

Nothing here yet. Be the first to post!