TSX:BNP

Stock Analysis Report

Bonavista Energy

Executive Summary

Bonavista Energy Corporation acquires, develops, and holds interests in oil and natural gas properties and assets in Western Canada.

Snowflake

Fundamentals

Undervalued with poor track record.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-5.6%

BNP

0.4%

CA Oil and Gas

0.2%

CA Market


1 Year Return

-60.8%

BNP

-9.1%

CA Oil and Gas

3.5%

CA Market

Return vs Industry: BNP underperformed the Canadian Oil and Gas industry which returned -9.1% over the past year.

Return vs Market: BNP underperformed the Canadian Market which returned 3.5% over the past year.


Shareholder returns

BNPIndustryMarket
7 Day-5.6%0.4%0.2%
30 Day-28.2%-5.5%-3.3%
90 Day12.1%-2.0%-1.9%
1 Year-60.0%-60.8%-5.0%-9.1%7.3%3.5%
3 Year-87.9%-88.6%-15.3%-23.9%14.7%4.4%
5 Year-94.3%-95.2%-21.7%-33.6%26.2%7.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BNP (CA$0.51) is trading below our estimate of fair value (CA$1.51)

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


Price To Earnings Ratio

PE vs Industry: BNP is good value based on its PE Ratio (5.3x) compared to the Oil and Gas industry average (8.4x).

PE vs Market: BNP is good value based on its PE Ratio (5.3x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BNP is good value based on its PB Ratio (0.1x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is Bonavista Energy forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

2.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if BNP's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if BNP'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: BNP's revenue (2.3% per year) is forecast to grow slower than the Canadian market (5.5% per year).

High Growth Revenue: BNP's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BNP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Bonavista Energy performed over the past 5 years?

13.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BNP's earnings have grown by 13.1% per year over the past 5 years.

Accelerating Growth: BNP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BNP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (62.2%).


Return on Equity

High ROE: BNP's Return on Equity (1.7%) is considered low.


Return on Assets

ROA vs Industry: BNP's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: BNP's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Bonavista Energy's financial position?


Financial Position Analysis

Short Term Liabilities: BNP's short term assets (CA$117.3M) do not cover its short term liabilities (CA$142.9M)

Long Term Liabilities: BNP's short term assets (117.3M) do not cover its long term liabilities (1.2B)


Debt to Equity History and Analysis

Debt Level: BNP's debt to equity ratio (50.3%) is considered high

Reducing Debt: BNP's debt to equity ratio has increased from 44.3% to 50.3% over the past 5 years.

Debt Coverage: BNP's debt is well covered by operating cash flow (34.3%).

Interest Coverage: BNP's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: BNP's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

0.92%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%5.9%industryaverage4.8%forecastin3Years0.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate BNP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate BNP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if BNP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BNP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: BNP is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BNP's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Jason Skehar (46yo)

6.8yrs

Tenure

CA$1,604,430

Compensation

Mr. Jason Edward Skehar has been Director at Step Energy Services Ltd since June 22, 2012. He has been the Chief Executive Officer and President of Bonavista Energy Corporation (formerly, Bonavista Energy  ...


CEO Compensation Analysis

Compensation vs. Market: Jason's total compensation ($USD1.23M) is about average for companies of similar size in the Canadian market ($USD135.83K).

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


Management Age and Tenure

5.9yrs

Average Tenure

Experienced Management: BNP's management team is seasoned and experienced (5.9 years average tenure).


Board Age and Tenure

6.4yrs

Average Tenure

60yo

Average Age

Experienced Board: BNP's board of directors are considered experienced (6.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$3,063,29628 Aug 19
G2S2 Capital Inc.
EntityCompany
Shares6,126,600
Max PriceCA$0.50
BuyCA$1,000,00127 Aug 19
G2S2 Capital Inc.
EntityCompany
Shares2,000,000
Max PriceCA$0.50
BuyCA$24826 Aug 19
G2S2 Capital Inc.
EntityCompany
Shares500
Max PriceCA$0.49
BuyCA$88,03023 Aug 19
G2S2 Capital Inc.
EntityCompany
Shares177,000
Max PriceCA$0.50
BuyCA$60,23822 Aug 19
G2S2 Capital Inc.
EntityCompany
Shares120,500
Max PriceCA$0.50
BuyCA$497,68519 Aug 19
G2S2 Capital Inc.
EntityCompany
Shares1,033,500
Max PriceCA$0.51
BuyCA$721,46913 Aug 19
G2S2 Capital Inc.
EntityCompany
Shares1,545,000
Max PriceCA$0.47
BuyCA$508,09812 Aug 19
G2S2 Capital Inc.
EntityCompany
Shares1,141,000
Max PriceCA$0.47
BuyCA$2,800,00207 Aug 19
G2S2 Capital Inc.
EntityCompany
Shares5,600,000
Max PriceCA$0.50
BuyCA$14,00010 Jun 19
Jason Skehar
EntityIndividual
Role
Chief Executive Officer
President
Shares25,000
Max PriceCA$0.56
BuyCA$5,60006 Jun 19
David Carey
EntityIndividual
Role
Lead Director
Lead Director
Shares10,000
Max PriceCA$0.56
SellCA$42,78225 Feb 19
Keith A. MacPhail
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman of the Board
Shares35,000
Max PriceCA$1.23

Ownership Breakdown


Management Team

  • Grant Zawalsky (59yo)

    Corporate Secretary

    • Tenure: 0yrs
  • Jason Skehar (46yo)

    President

    • Tenure: 6.8yrs
    • Compensation: CA$1.60m
  • Dean Kobelka

    Chief Financial Officer

    • Tenure: 4.4yrs
    • Compensation: CA$1.16m
  • Lynda Robinson

    Vice President of Human Resources & Administration

    • Tenure: 13.8yrs
    • Compensation: CA$1.20m
  • Bruce Jensen

    Chief Operating Officer

    • Tenure: 5yrs
    • Compensation: CA$1.16m

Board Members

  • Bob Phillips (64yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: CA$130.34k
  • Theresa Jang (54yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: CA$114.13k
  • Keith A. MacPhail (62yo)

    Non-Executive Chairman of the Board

    • Tenure: 11.8yrs
    • Compensation: CA$156.08k
  • Chris Slubicki (60yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: CA$127.34k
  • Ron Poelzer (57yo)

    Independent Vice Chairman of the Board

    • Tenure: 11.3yrs
    • Compensation: CA$155.39k
  • Jason Skehar (46yo)

    President

    • Tenure: 6.8yrs
    • Compensation: CA$1.60m
  • Ian Brown (61yo)

    Independent Director

    • Tenure: 15.4yrs
    • Compensation: CA$137.84k
  • David Carey (62yo)

    Lead Director

    • Tenure: 0.8yrs
    • Compensation: CA$107.59k
  • Mary Hemmingsen (55yo)

    Independent Director

    • Tenure: 0.8yrs

Company Information

Bonavista Energy Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bonavista Energy Corporation
  • Ticker: BNP
  • Exchange: TSX
  • Founded: 1987
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$135.247m
  • Shares outstanding: 265.19m
  • Website: https://www.bonavistaenergy.com

Number of Employees


Location

  • Bonavista Energy Corporation
  • 525 – 8th Avenue SW
  • Suite 1500
  • Calgary
  • Alberta
  • T2P 1G1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BNPTSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 1988
BNPU.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1988
BV2DB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1988

Biography

Bonavista Energy Corporation acquires, develops, and holds interests in oil and natural gas properties and assets in Western Canada. The company was founded in 1987 and 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 Analysis2019/10/23 00:18
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.