TSX:BNE

Stock Analysis Report

Bonterra Energy

Executive Summary

Bonterra Energy Corp., an upstream oil and gas company, engages in the production and sale of crude oil, natural gas, and natural gas liquids.

Rewards

Trading at 59.2% below its fair value

Pays a reliable dividend of 2.78%

Risk Analysis

Earnings have declined by -3.58% per year over past 5 years

Interest payments are not well covered by earnings

Does not have a meaningful market cap (CA$130M)



Snowflake Analysis

Undervalued average dividend payer.

Share Price & News

How has Bonterra Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BNE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-9.3%

BNE

-0.5%

CA Oil and Gas

0.8%

CA Market


1 Year Return

-36.0%

BNE

5.5%

CA Oil and Gas

10.6%

CA Market

Return vs Industry: BNE underperformed the Canadian Oil and Gas industry which returned 5.3% over the past year.

Return vs Market: BNE underperformed the Canadian Market which returned 10.4% over the past year.


Shareholder returns

BNEIndustryMarket
7 Day-9.3%-0.5%0.8%
30 Day-5.2%-0.3%2.1%
90 Day8.5%9.5%6.6%
1 Year-34.3%-36.0%10.1%5.5%14.1%10.6%
3 Year-82.8%-85.4%-8.2%-17.8%17.0%6.4%
5 Year-87.1%-90.3%-3.6%-19.0%38.5%18.2%

Price Volatility Vs. Market

How volatile is Bonterra Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bonterra Energy undervalued compared to its fair value and its price relative to the market?

22.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BNE (CA$4.31) is trading below our estimate of fair value (CA$10.56)

Significantly Below Fair Value: BNE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BNE is good value based on its PE Ratio (11.6x) compared to the Oil and Gas industry average (11.8x).

PE vs Market: BNE is good value based on its PE Ratio (11.6x) compared to the Canadian market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BNE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BNE is good value based on its PB Ratio (0.3x) compared to the CA Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Bonterra Energy forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

3.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if BNE's forecast earnings growth is above the savings rate (1.4%).

Earnings vs Market: Insufficient data to determine if BNE's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BNE's revenue (3.6% per year) is forecast to grow slower than the Canadian market (5% per year).

High Growth Revenue: BNE's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BNE is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Bonterra Energy performed over the past 5 years?

-3.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BNE has high quality earnings.

Growing Profit Margin: BNE's current net profit margins (7.2%) are lower than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: BNE's earnings have declined by -3.6% per year over the past 5 years.

Accelerating Growth: BNE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BNE had negative earnings growth (-38.5%) over the past year, making it difficult to compare to the Oil and Gas industry average (16.5%).


Return on Equity

High ROE: BNE's Return on Equity (2.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bonterra Energy's financial position?


Financial Position Analysis

Short Term Liabilities: BNE's short term assets (CA$25.0M) do not cover its short term liabilities (CA$49.6M).

Long Term Liabilities: BNE's short term assets (CA$25.0M) do not cover its long term liabilities (CA$577.5M).


Debt to Equity History and Analysis

Debt Level: BNE's debt to equity ratio (59.9%) is considered high.

Reducing Debt: BNE's debt to equity ratio has increased from 27.6% to 59.9% over the past 5 years.

Debt Coverage: BNE's debt is well covered by operating cash flow (26.7%).

Interest Coverage: BNE's interest payments on its debt are not well covered by EBIT (0.2x coverage).


Balance Sheet

Inventory Level: BNE has a high level of physical assets or inventory.

Debt Coverage by Assets: BNE's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Bonterra Energy's current dividend yield, its reliability and sustainability?

3.15%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.9%markettop25%5.5%industryaverage4.6%forecastin3Years3.1%

Current dividend yield vs market & industry

Notable Dividend: BNE's dividend (2.78%) is higher than the bottom 25% of dividend payers in the Canadian market (1.88%).

High Dividend: BNE's dividend (2.78%) is low compared to the top 25% of dividend payers in the Canadian market (5.48%).


Stability and Growth of Payments

Stable Dividend: BNE's dividends per share have been stable in the past 10 years.

Growing Dividend: BNE's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.5%), BNE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BNE's dividends in 3 years are forecast to be well covered by earnings (16.5% payout ratio).


Next Steps

Management

What is the CEO of Bonterra Energy's salary, the management and board of directors tenure and is there insider trading?

7.7yrs

Average management tenure


CEO

George Fink (79yo)

39yrs

Tenure

CA$400,939

Compensation

Mr. George Frederick Fink, B. Comm., C.A., has been the Chief Executive Officer at Bonterra Energy Corp since January 1981. Mr. Fink serves as the Chief Executive Officer of CanAmericas (Argentina) Energy  ...


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD306.88K) is above average for companies of similar size in the Canadian market ($USD165.67K).

Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.7yrs

Average Tenure

Experienced Management: BNE's management team is seasoned and experienced (7.7 years average tenure).


Board Age and Tenure

6.7yrs

Average Tenure

72.5yo

Average Age

Experienced Board: BNE's board of directors are considered experienced (6.7 years average tenure).


Insider Trading

Insider Buying: BNE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCA$186,29311 Dec 19
Adrian Neumann
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares50,761
Max PriceCA$3.67
BuyCA$186,29311 Dec 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares50,761
Max PriceCA$3.67
BuyCA$11,65210 Dec 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares3,239
Max PriceCA$3.60
BuyCA$12,03928 Nov 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares4,000
Max PriceCA$3.01
BuyCA$12,08022 Nov 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares4,000
Max PriceCA$3.02
BuyCA$9,72320 Nov 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares3,338
Max PriceCA$2.93
BuyCA$11,68019 Nov 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares4,000
Max PriceCA$2.92
BuyCA$24,49318 Nov 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares8,000
Max PriceCA$3.12
BuyCA$52,51214 Nov 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares17,000
Max PriceCA$3.29
BuyCA$17,22528 Oct 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares5,000
Max PriceCA$3.45
BuyCA$18,20618 Oct 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares5,000
Max PriceCA$3.64
BuyCA$39,55116 Oct 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares10,000
Max PriceCA$3.97
BuyCA$78,14209 Oct 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares20,000
Max PriceCA$3.92
BuyCA$51,61324 Jul 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares10,000
Max PriceCA$5.16
BuyCA$30,29819 Jul 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares5,900
Max PriceCA$5.14
BuyCA$50,46118 Jul 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares10,000
Max PriceCA$5.05
BuyCA$53,37315 Jul 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares10,000
Max PriceCA$5.34
BuyCA$52,47408 Jul 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares10,000
Max PriceCA$5.25
BuyCA$100,81117 Jun 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares20,000
Max PriceCA$5.08
BuyCA$51,79214 Jun 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares10,000
Max PriceCA$5.18
BuyCA$53,50006 Jun 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares10,000
Max PriceCA$5.35
BuyCA$56,81705 Jun 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares10,000
Max PriceCA$5.68
BuyCA$58,02530 May 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares10,000
Max PriceCA$5.80
BuyCA$100,14315 May 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares15,000
Max PriceCA$6.68
BuyCA$98,90013 May 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares15,000
Max PriceCA$6.59
BuyCA$93,79904 Apr 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares15,000
Max PriceCA$6.25
BuyCA$414,74801 Apr 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares66,000
Max PriceCA$6.32
BuyCA$51,67104 Feb 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares8,500
Max PriceCA$6.08
BuyCA$23,33228 Jan 19
George Fink
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares4,000
Max PriceCA$5.83

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • George Fink (79yo)

    Chairman & CEO

    • Tenure: 39yrs
    • Compensation: CA$400.94k
  • Robb Thompson

    CFO & Corporate Secretary

    • Tenure: 8.9yrs
    • Compensation: CA$400.94k
  • Brad Curtis

    Senior Vice President of Business Development

    • Tenure: 2.8yrs
    • Compensation: CA$362.94k
  • Adrian Neumann

    Chief Operating Officer

    • Tenure: 6.5yrs
    • Compensation: CA$400.94k

Board Members

  • Aidan Walsh (64yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: CA$82.05k
  • George Fink (79yo)

    Chairman & CEO

    • Tenure: 39yrs
    • Compensation: CA$400.94k
  • Gary Drummond (68yo)

    Independent Director

    • Tenure: 20.4yrs
    • Compensation: CA$82.05k
  • Rodger Tourigny (77yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: CA$82.05k
  • Randy Jarock

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: CA$82.05k
  • Dan Reuter

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: CA$152.86k

Company Information

Bonterra Energy Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bonterra Energy Corp.
  • Ticker: BNE
  • Exchange: TSX
  • Founded:
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$127.211m
  • Shares outstanding: 33.39m
  • Website: https://www.bonterraenergy.com

Number of Employees


Location

  • Bonterra Energy Corp.
  • 1015 - 4th Street SW
  • Suite 901
  • Calgary
  • Alberta
  • T2R 1J4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BNEF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 2001
BNETSX (The Toronto Stock Exchange)YesCommon SharesCACADJul 2001
QNC1DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2001

Biography

Bonterra Energy Corp., an upstream oil and gas company, engages in the production and sale of crude oil, natural gas, and natural gas liquids. It primarily focuses on the development of its Cardium zone within the Pembina and Willesden Green areas located in west central Alberta. The company also holds interests in the Shaunavon area located in southwest Saskatchewan, and the Prespatou area located in northeast British Columbia. Bonterra Energy Corp. is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/23 00:30
End of Day Share Price2020/01/22 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.