Advantage Oil & Gas Ltd

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AAV : NYSE : Basic Materials
$6.6 0.0 | 0.0%
Today's Range: 6.5 - 6.65
Avg. Daily Volume: 86700.0
09/21/17 - 4:02 PM ET

Financial Analysis


ADVANTAGE OIL & GAS LTD's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. ADVANTAGE OIL & GAS LTD has weak liquidity. Currently, the Quick Ratio is 0.71 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 5.54% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)63.7527.12
EBITDA ($mil)46.8917.93
EBIT ($mil)17.2-13.36
Net Income ($mil)18.34-29.77


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)0.00.0
Total Assets ($mil)1541.741505.23
Total Debt ($mil)134.13194.03
Equity ($mil)1272.731205.83


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin78.9677.09
EBITDA Margin73.5566.1
Operating Margin26.98-49.26
Sales Turnover0.150.08
Return on Assets3.880.28
Return on Equity4.70.35
Debt Q2 FY17 Q2 FY16
Current Ratio1.262.23
Debt/Capital0.10.14
Interest Expense1.582.42
Interest Coverage10.92-5.53


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)185.95184.51
Div / share0.00.0
EPS0.1-0.16
Book value / share6.846.54
Institutional Own % n/a n/a
Avg Daily Volume86625.099479.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 54.14 for the Oil, Gas & Consumable Fuels industry and a discount compared to the S&P 500 average of 24.88. For additional comparison, its price-to-book ratio of 0.95 indicates a significant discount versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 475.26. 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 20.97 Peers 54.14   AAV 5.88 Peers 11.41

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 53.05   AAV NA Peers 0.57

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 0.95 Peers 475.26   AAV 933.33 Peers 184.28

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 5.18 Peers 2.13   AAV 93.41 Peers 21.12

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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