PXX.TO  Pearl Exploration & Prod L...

Exchange

TSX

Sector

Energy

Industry

Market Cap.

553.82M

Vuru Grade

22.94/100

Current Price

$1.65
-0.03 (-1.79%)

Growth Price

$1.77
Undervalued by 7.41%

Company Metrics

  • P/E 118.57
  • P/S 6.75
  • P/B 0.90
  • EPS -0.15
  • Cash ROIC -3.64%
  • Cash Ratio 0.16
  • Dividend 0 / N/A %
  • Avg. Vol. 216,053.00
  • Shares 335.65M
  • Market Cap. 553.82M

Company Description

BlackPearl Resources Inc. engages in the acquisition, exploration, development, and production of oil and natural gas in Canada and the United States. The company explores for heavy oil, bitumen, and oil sands. Its core properties include Onion Lake, a conventional heavy oil property located in the Lloydminster area in Saskatchewan; Blackrod, an in situ (SAGD) oil sands project located in northern... more


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

News

BlackPearl Resources Inc. (PXX) Price Target Increased to C$3.25 by the ...
Petro Global News 24 - Jan 2, 2017
BlackPearl Resources Inc. (TSE:PXX) had its price objective boosted by research analysts at TD Securities from C$2.25 to C$3.25 in a research report issued on Monday, StockTargetPrices.
BlackPearl Publishes 2016 Annual Filings - Marketwired (press release)
BRIEF-Blackpearl Resources Inc Q4 loss per share $0.01
Reuters - 12 hours ago
BRIEF-Blackpearl Resources Inc Q4 loss per share $0.01. Feb 23 Blackpearl Resources Inc. * Blackpearl announces fourth quarter and full year 2016 financial and operating results and year-end reserves and resources, work commences on phase 2 thermal ...
Research Reports Initiated on Energy Stocks BlackPearl Resources, Painted Pony ...
Yahoo Finance - Feb 22, 2017
Active Wall St. has initiated research reports on the following equities: BlackPearl Resources Inc. (TSX: PXX), Painted Pony Petroleum Ltd.
BlackPearl Resources Inc. (PXX) to Release Quarterly Earnings on Thursday
Chaffey Breeze - Feb 22, 2017
BlackPearl Resources logo BlackPearl Resources Inc. (TSE:PXX) will issue its quarterly earnings data after the market closes on Thursday, February 23rd.
The Analysts Set BlackPearl Resources Inc. (PXX) Price Target at $1.98
DailyQuint - Feb 21, 2017
Shares of BlackPearl Resources Inc. (TSE:PXX) have earned a consensus rating of “Buy” from the nine ratings firms that are presently covering the firm.
BlackPearl Resources Inc. (PXX) Raised to “Outperform” at AltaCorp Capital
The Cerbat Gem - Jan 10, 2017
BlackPearl Resources Inc. (TSE:PXX) was upgraded by investment analysts at AltaCorp Capital from a “sector perform” rating to an “outperform” rating in a report released on Monday.
Analysts Set BlackPearl Resources Inc. (PXX) Price Target at $1.98
Sports Perspectives - Feb 2, 2017
BlackPearl Resources logo BlackPearl Resources Inc. (TSE:PXX) has earned an average rating of “Buy” from the nine research firms that are currently covering the company.
BlackPearl Resources shuts in 1000 barrels a day, further slashes budget
Calgary Herald - Feb 26, 2016
Junior heavy oil producer BlackPearl Resources Inc. is shutting in 1,000 barrels a day of higher-cost oil production and has slashed its already frugal 2016 capital budget by another $5 million as oil prices remain low.
BlackPearl Resources Inc. (PXX) Scheduled to Post Quarterly Earnings on Thursday
Community Financial News - Feb 21, 2017
BlackPearl Resources logo BlackPearl Resources Inc. (TSE:PXX) is scheduled to issue its quarterly earnings data after the market closes on Thursday, February 23rd.
Analysts Set BlackPearl Resources Inc. (PXX) PT at $1.89
Sports Perspectives - Jan 1, 2017
BlackPearl Resources logo BlackPearl Resources Inc. (TSE:PXX) has received a consensus recommendation of “Buy” from the nine research firms that are covering the company.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for PXX.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 PXX.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.

$1.65 Current Price

$1.77 Growth Price (DCF)

Undervalued by 7.41%


Growth Rate Assumed by Market: -337.89%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


PXX.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

$2.63 Book Price

Undervalued by 59.17%


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

PXX.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.

PXX.TO has lost $3.64 of cash for every $100 invested.
Figures in CAD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 75.40M -59.31M -12.39M -156.72M -6.02M
divided by
Invested Capital 470.45M 561.40M 605.08M 752.34M 791.57M
Cash ROIC 16.03% -10.57% -2.05% -20.83% -0.76%

Poor Return on Equity over the past 5 years

PXX.TO has shown an inability to deliver strong results for shareholders. This could be due to poor management, PXX.TO operating in a highly competitive industry, or having a weak business in general.

PXX.TO has only generated $0.27 of Earnings for every $100 of Shareholders' Equity.
Figures in CAD. Fiscal year ends in December
20112012201320142015
Net Income 18.91M 45,000.00 6.45M 26.83M -46.79M
divided by
Stockholders' Equity 530.12M 545.00M 558.94M 679.04M 638.26M
Return on Equity 3.57% 0.01% 1.15% 3.95% -7.33%

Poor Business Performance over the past 10 years

PXX.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.

PXX.TO has been losing money for the majority of the past 10 years.
Figures in CAD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow -21.58M -222.30M -37.86M -28.47M -37.00M 75.40M -59.31M -12.39M -156.72M -6.02M

Good Balance Sheet

PXX.TO's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in CAD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 8.72M 4.80M 24.06M 56.35M 169.60M 59.67M 16.98M 8.40M 23.55M 2.30M
Current Assets 13.92M 35.75M 40.86M 74.31M 192.11M 83.80M 34.56M 29.95M 43.65M 25.54M
Total Assets 129.07M 575.87M 472.14M 468.31M 543.83M 606.52M 620.73M 652.22M 837.77M 808.34M
Current Liabilities 17.68M 69.90M 34.41M 16.32M 48.08M 76.40M 42.35M 38.73M 61.89M 14.47M
Total Liabilities 26.98M 86.49M 58.51M 41.75M 66.94M 76.40M 75.72M 93.28M 158.74M 170.09M
Stockholder' Equity 102.09M 489.38M 413.64M 426.56M 476.89M 530.12M 545.00M 558.94M 679.04M 638.26M
Current Ratio 0.79 0.51 1.19 4.55 4.00 1.10 0.82 0.77 0.71 1.76
TL-to-TA 0.21 0.15 0.12 0.09 0.12 0.13 0.12 0.14 0.19 0.21

Low or No Reinvestment of Profits over the past 10 years

PXX.TO has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to PXX.TO operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in CAD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings -15.31M -242.52M -321.38M -368.70M -399.97M -358.21M -358.16M -351.71M -324.89M -371.68M
Retained Earnings Growth - -1,483.64% -32.52% -14.72% -8.48% 10.44% 0.01% 1.80% 7.63% -14.40%

Erratic Net Profit Margins over the past 10 years

PXX.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 CAD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income -8.95M -227.21M -78.86M -47.32M -31.27M 18.91M 45,000.00 6.45M 26.83M -46.79M
divided by
Revenue 3.63M 128.52M 183.54M 68.38M 146.89M 179.44M 204.53M 222.16M 250.84M 122.20M
Net Profit Margin -246.31% -176.78% -42.97% -69.20% -21.29% 10.54% 0.02% 2.90% 10.69% -38.29%

Varying Pricing Power over the past 10 years

PXX.TO has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. However, there is a substantial variation in their Gross Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$51.58 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in CAD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 2.21M 45.93M 84.77M 35.45M 70.54M 179.44M 90.50M 96.65M 118.79M 46.69M
divided by
Revenue 3.63M 128.52M 183.54M 68.38M 146.89M 179.44M 204.53M 222.16M 250.84M 122.20M
Gross Margin 60.67% 35.74% 46.19% 51.84% 48.02% 100.00% 44.25% 43.50% 47.36% 38.21%

High Capital Intensity over the past 10 years

PXX.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.

103,865.13% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in CAD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 20.62M 217.32M 107.37M 27.88M 95.83M - 139.17M 93.08M 235.11M 68.36M
divided by
Net Income -8.95M -227.21M -78.86M -47.32M -31.27M 18.91M 45,000.00 6.45M 26.83M -46.79M
Capital Expenditure Ratio -230.30% -95.65% -136.15% -58.92% -306.44% - 309,275.56% 1,443.37% 876.45% -146.09%

No Dividend History over the past 10 years

PXX.TO has never distributed dividends or has recently suspended their dividend distribution.
Figures in CAD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 38.65M 132.53M 189.24M 243.19M 269.03M 301.19M 292.66M 300.15M 327.96M 335.64M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End - - 0.75 2.53 5.91 4.11 3.02 2.25 1.13 0.75
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

PXX.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 CAD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 38.65M 132.53M 189.24M 243.19M 269.03M 301.19M 292.66M 300.15M 327.96M 335.64M
Stock Bought Back - -70.84% -29.97% -22.18% -9.61% -10.68% 2.92% -2.49% -8.48% -2.29%
Share your thoughts about PXX.TO

Sign Up or Log In to start contributing!


Discussion

Nothing here yet. Be the first to post!