PXX.TO  Pearl Exploration & Prod L...

Exchange

TSX

Sector

Energy

Industry

Market Cap.

359.81M

Vuru Grade

38.00/100

Current Price

$1.07
+0.02 (+1.90%)

Growth Price

$2.43
Undervalued by 127.52%

Company Metrics

  • P/E 26.75
  • P/S 2.86
  • P/B 0.55
  • EPS 0.04
  • Cash ROIC -5.94%
  • Cash Ratio 0.22
  • Dividend 0 / 0%
  • Avg. Vol. 105,290.00
  • Shares 336.27M
  • Market Cap. 359.81M

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 Is Weathering The Current Oil Storm
Seeking Alpha - Jan 4, 2016
Almost two years ago, Itinerant presented BlackPearl Resources (OTCPK:BLKPF) as a "low-risk, high-reward story." Unfortunately, this company was hit by external factors and now has to try to survive the current oil glut, just like 99% of all the other ...
Tenkan Sen Shows Bearish Movement For Blackpearl Resources Inc (PXX.TO)
The Business Union - 59 minutes ago
Blackpearl Resources Inc (PXX.TO)'s moving averages reveal that the Tenkan line of the shares are below the Kijun-Sen line, indicating potential downward momentum building in the bearish chart.
BLACKPEARL ANNOUNCES $75 MILLION SENIOR SECURED SECOND LIEN NOTE FINANCING AND ...
GlobeNewswire (press release) - Jun 30, 2017
CALGARY, ALBERTA - BlackPearl Resources Inc. ("BlackPearl" or the "Company") (TSX:PXX) (NASDAQ OMX Stockholm:PXXS) is pleased to announce that it has issued $75 million aggregate principal amount of senior secured second lien notes (”Notes”) to ...
CANADA RESEARCH ROUNDUP-Blackpearl Resources, Teck Resources
Reuters - Mar 24, 2016
March 24 (Reuters) - Securities analysts revised their ratings and price targets on several Canadian companies, including Blackpearl Resources, Teck Resources and Power Corporation of Canada, on Thursday. HIGHLIGHTS * AGT Food and Ingredients Inc ...
Blackpearl Resources Inc (PXXS-SDB) Plunged -2.11% on Oct 21
UtahHerald.com - Oct 21, 2017
Shares of Blackpearl Resources Inc (STO:PXXS-SDB) last traded at 6.95, representing a move of -2.11%, or -0.15 per share, on volume of 234,565 shares.
BlackPearl Resources Inc. (PXX) Trading Down 3.7%
The Ledger Gazette - Oct 21, 2017
BlackPearl Resources logo Shares of BlackPearl Resources Inc. (TSE:PXX) fell 3.7% on Thursday . The company traded as low as C$1.04 and last traded at C$1.04.
Can analysts adopt a bullish outlook for BlackPearl Resources Inc. (TSE:PXX)?
Weekly Register - Oct 6, 2017
Among 6 analysts covering Blackpearl Resources Inc. (TSE:PXX), 3 have Buy rating, 0 Sell and 3 Hold. Therefore 50% are positive.
Stochastic RSI Displaying Bearish Divergence for Blackpearl Resources Inc (PXX.TO)
Stock Daily Review - Oct 19, 2017
Taking a closer look at shares of Blackpearl Resources Inc (PXX.TO), we have seen that the 14 day Stochastic RSI is showing signs of a bearish divergence.
Blackpearl Resources Inc (PXXS-SDB) Declined -2.11% on Oct 22
San Times - Oct 21, 2017
Shares of Blackpearl Resources Inc (STO:PXXS-SDB) last traded at 6.95, representing a move of -2.11%, or -0.15 per share, on volume of 234,565 shares.
BlackPearl wants partner for newly approved Canada oil sands project
Reuters - Sep 16, 2016
CALGARY, Alberta (Reuters) - Canadian producer BlackPearl Resources Inc is looking for a partner to develop its 80,000-barrel-per-day Blackrod oil sands project in northern Alberta, the company's chief executive told Reuters on Friday.
Varcoe: New oilsands projects approved but questions loom over emissions cap - Calgary Herald
Calgary oilsands developer applauds Alberta NDP's approval of multi-billion ... - Globalnews.ca
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.

$1.07 Current Price

$2.43 Growth Price (DCF)

Undervalued by 127.52%


Growth Rate Assumed by Market: -500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$2.53 Book Price

Undervalued by 136.30%


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 $5.94 of cash for every $100 invested.
Figures in CAD. Fiscal year ends in December
20122013201420152016
Free Cash Flow -59.31M -12.39M -156.72M -6.02M 31.57M
divided by
Invested Capital 561.40M 605.08M 752.34M 791.57M 702.53M
Cash ROIC -10.57% -2.05% -20.83% -0.76% 4.49%

Very Poor Return on Equity over the past 5 years

PXX.TO has shown an inability to deliver 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 generated a $1.08 loss for every $100 of Shareholders' Equity.
Figures in CAD. Fiscal year ends in December
20122013201420152016
Net Income 45,000.00 6.45M 26.83M -46.79M -19.93M
divided by
Stockholders' Equity 545.00M 558.94M 679.04M 638.26M 621.90M
Return on Equity 0.01% 1.15% 3.95% -7.33% -3.20%

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
2007200820092010201120122013201420152016
Free Cash Flow -222.30M -37.86M -28.47M -37.00M 75.40M -59.31M -12.39M -156.72M -6.02M 31.57M

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
2007200820092010201120122013201420152016
Cash 4.80M 24.06M 56.35M 169.60M 59.67M 16.98M 8.40M 23.55M 2.30M 5.37M
Current Assets 35.75M 40.86M 74.31M 192.11M 83.80M 34.56M 29.95M 43.65M 25.54M 19.51M
Total Assets 575.87M 472.14M 468.31M 543.83M 606.52M 620.73M 652.22M 837.77M 808.34M 732.40M
Current Liabilities 69.90M 34.41M 16.32M 48.08M 76.40M 42.35M 38.73M 61.89M 14.47M 24.51M
Total Liabilities 86.49M 58.51M 41.75M 66.94M 76.40M 75.72M 93.28M 158.74M 170.09M 110.50M
Stockholder' Equity 489.38M 413.64M 426.56M 476.89M 530.12M 545.00M 558.94M 679.04M 638.26M 621.90M
Current Ratio 0.51 1.19 4.55 4.00 1.10 0.82 0.77 0.71 1.76 0.80
TL-to-TA 0.15 0.12 0.09 0.12 0.13 0.12 0.14 0.19 0.21 0.15

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
2007200820092010201120122013201420152016
Retained Earnings -242.52M -321.38M -368.70M -399.97M -358.21M -358.16M -351.71M -324.89M -371.68M -391.61M
Retained Earnings Growth - -32.52% -14.72% -8.48% 10.44% 0.01% 1.80% 7.63% -14.40% -5.36%

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
2007200820092010201120122013201420152016
Net Income -227.21M -78.86M -47.32M -31.27M 18.91M 45,000.00 6.45M 26.83M -46.79M -19.93M
divided by
Revenue 128.52M 183.54M 68.38M 146.89M 179.44M 204.53M 222.16M 250.84M 122.20M 104.58M
Net Profit Margin -176.78% -42.97% -69.20% -21.29% 10.54% 0.02% 2.90% 10.69% -38.29% -19.06%

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.

$49.30 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
2007200820092010201120122013201420152016
Gross Profit 45.93M 84.77M 35.45M 70.54M 179.44M 90.50M 96.65M 118.79M 46.69M 39.66M
divided by
Revenue 128.52M 183.54M 68.38M 146.89M 179.44M 204.53M 222.16M 250.84M 122.20M 104.58M
Gross Margin 35.74% 46.19% 51.84% 48.02% 100.00% 44.25% 43.50% 47.36% 38.21% 37.92%

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
2007200820092010201120122013201420152016
Capital Expenditure 217.32M 107.37M 27.88M 95.83M - 139.17M 93.08M 235.11M 68.36M 10.93M
divided by
Net Income -227.21M -78.86M -47.32M -31.27M 18.91M 45,000.00 6.45M 26.83M -46.79M -19.93M
Capital Expenditure Ratio -95.65% -136.15% -58.92% -306.44% - 309,275.56% 1,443.37% 876.45% -146.09% -54.82%

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
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 132.53M 189.24M 243.19M 269.03M 301.19M 292.66M 300.15M 327.96M 335.64M 335.67M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End - 0.75 2.53 5.91 4.11 3.02 2.25 1.13 0.75 1.63
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
2007200820092010201120122013201420152016
Shares Outstanding 132.53M 189.24M 243.19M 269.03M 301.19M 292.66M 300.15M 327.96M 335.64M 335.67M
Stock Bought Back - -29.97% -22.18% -9.61% -10.68% 2.92% -2.49% -8.48% -2.29% -0.01%
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