Advantage Oil & Gas Ltd

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AAV : NYSE : Basic Materials
$6.56 | %
Today's Range: 6.42 - 6.58
Avg. Daily Volume: 84,500
07/22/16 - 4:02 PM ET

Financial Analysis


ADVANTAGE OIL & GAS LTD's gross profit margin for the first quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Even though sales decreased, the net income has increased. ADVANTAGE OIL & GAS LTD has very weak liquidity. Currently, the Quick Ratio is 0.44 which clearly 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 12.26% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)25.7931.09
EBITDA ($mil)17.9123.94
EBIT ($mil)-7.032.93
Net Income ($mil)14.694.07


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)0.00.0
Total Assets ($mil)1554.141508.44
Total Debt ($mil)202.54261.24
Equity ($mil)1233.91099.09


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin78.7886.25
EBITDA Margin69.4276.99
Operating Margin-27.269.42
Sales Turnover0.080.12
Return on Assets2.056.38
Return on Equity2.598.76
Debt Q1 FY16 Q1 FY15
Current Ratio2.930.8
Debt/Capital0.140.19
Interest Expense2.852.58
Interest Coverage-2.471.13


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)184.45170.32
Div / share0.00.0
EPS0.080.02
Book value / share6.696.45
Institutional Own % n/a n/a
Avg Daily Volume84501.0128727.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 70.76 for the Oil, Gas & Consumable Fuels industry and a significant premium compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 0.96 indicates a significant discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 11.73. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, ADVANTAGE OIL & GAS LTD proves to trade at a discount 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 35.72 Peers 70.76   AAV 9.52 Peers 306.30

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

AAV is trading at a significant discount 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 39.26   AAV NA Peers 2.07

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 0.96 Peers 11.73   AAV -67.86 Peers -202.73

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.

 

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

AAV is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AAV 9.79 Peers 2.43   AAV -32.91 Peers -25.78

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

AAV significantly trails its peers on the basis of sales growth

 

 

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