Advantage Oil & Gas Ltd

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AAV : NYSE : Basic Materials
$6.1 up 0.15 | 2.52%
Today's Range: 5.9 - 6.16
Avg. Daily Volume: 110400.0
03/23/17 - 4:02 PM ET

Financial Analysis


ADVANTAGE OIL & GAS LTD's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. ADVANTAGE OIL & GAS LTD has weak liquidity. Currently, the Quick Ratio is 0.72 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 9.73% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)43.2135.33
EBITDA ($mil)34.528.27
EBIT ($mil)2.254.33
Net Income ($mil)8.196.96


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)0.00.0
Total Assets ($mil)1512.091518.96
Total Debt ($mil)178.97285.71
Equity ($mil)1215.551107.7


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin86.2586.09
EBITDA Margin79.8580.01
Operating Margin5.212.25
Sales Turnover0.090.09
Return on Assets0.364.12
Return on Equity0.455.65
Debt Q3 FY16 Q3 FY15
Current Ratio1.421.53
Debt/Capital0.130.21
Interest Expense2.152.67
Interest Coverage1.041.62


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)184.61170.72
Div / share0.00.0
EPS0.040.04
Book value / share6.586.49
Institutional Own % n/a n/a
Avg Daily Volume107742.0116333.0

Valuation


HOLD. ADVANTAGE OIL & GAS LTD's P/E ratio indicates a significant premium compared to an average of 145.31 for the Oil, Gas & Consumable Fuels industry and a significant premium compared to the S&P 500 average of 26.73. For additional comparison, its price-to-book ratio of 0.91 indicates a significant discount versus the S&P 500 average of 2.98 and a significant discount versus the industry average of 34.50. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, ADVANTAGE OIL & GAS LTD seems to be trading at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AAV 200.00 Peers 145.31   AAV 7.39 Peers 12.23

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

AAV is trading at a significant premium to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

AAV is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AAV NA Peers 35.06   AAV NA Peers 0.51

Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.

Ratio not available.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AAV 0.91 Peers 34.50   AAV -91.90 Peers 23.65

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

AAV is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, AAV is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AAV 8.61 Peers 2.55   AAV -7.46 Peers -10.24

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

AAV is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

AAV has a sales growth rate that significantly exceeds its peers.

 

 

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