TSX:FEC

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Frontera Energy

Market Cap

CA$737.1m

Last Updated

2021/07/28 02:21 UTC

Data Sources

Company Financials +

Executive Summary

Frontera Energy Corporation explores for, develops, and produces crude oil and natural gas in South America. More Details


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FEC is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: FEC's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

5.7%

FEC

1.9%

CA Oil and Gas

1.2%

CA Market


1 Year Return

150.8%

FEC

35.6%

CA Oil and Gas

27.8%

CA Market

Return vs Industry: FEC exceeded the Canadian Oil and Gas industry which returned 35.8% over the past year.

Return vs Market: FEC exceeded the Canadian Market which returned 27.9% over the past year.


Shareholder returns

FECIndustryMarket
7 Day5.7%1.9%1.2%
30 Day-1.8%-7.0%-1.5%
90 Day20.4%5.4%2.1%
1 Year150.8%150.8%42.7%35.6%31.7%27.8%
3 Year-51.3%-59.9%-7.5%-19.0%29.5%17.0%
5 Yearn/a3.2%-15.4%51.9%29.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Frontera 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: FEC (CA$7.6) is trading below our estimate of fair value (CA$17.29)

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


Price To Earnings Ratio

PE vs Industry: FEC is unprofitable, so we can't compare its PE Ratio to the Canadian Oil and Gas industry average.

PE vs Market: FEC is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FEC is good value based on its PB Ratio (0.9x) compared to the CA Oil and Gas industry average (1.7x).


Future Growth

How is Frontera Energy forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

5.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if FEC's forecast earnings growth is above the savings rate (1.5%).

Earnings vs Market: Insufficient data to determine if FEC'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: FEC's revenue (5.9% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: FEC's revenue (5.9% 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 FEC's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Frontera Energy performed over the past 5 years?

22.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FEC is currently unprofitable.

Growing Profit Margin: FEC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FEC is unprofitable, but has reduced losses over the past 5 years at a rate of 22.9% per year.

Accelerating Growth: Unable to compare FEC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FEC is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-27.4%).


Return on Equity

High ROE: FEC has a negative Return on Equity (-14.75%), as it is currently unprofitable.


Financial Health

How is Frontera Energy's financial position?


Financial Position Analysis

Short Term Liabilities: FEC's short term assets ($671.7M) do not cover its short term liabilities ($711.5M).

Long Term Liabilities: FEC's short term assets ($671.7M) exceed its long term liabilities ($531.3M).


Debt to Equity History and Analysis

Debt Level: FEC's debt to equity ratio (74.7%) is considered high.

Reducing Debt: FEC had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable FEC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: FEC is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 60.6% per year.


Dividend

What is Frontera Energy current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Orlando Cabrales Segovia (51 yo)

0.33

Tenure

US$148,216

Compensation

Mr. Orlando Cabrales Segovia is a Chief Executive Officer of Frontera Energy Corporation since March 15, 2021. He is a Director of Isagen S.A. E.S.P. He has been a Director General of National Hydrocarbons...


Leadership Team

Experienced Management: FEC's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: FEC's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FEC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Frontera Energy Corporation
  • Ticker: FEC
  • Exchange: TSX
  • Founded: 1985
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$737.088m
  • Shares outstanding: 96.99m
  • Website: https://www.fronteraenergy.ca

Number of Employees


Location

  • Frontera Energy Corporation
  • 333 Bay Street
  • Suite 1100
  • Toronto
  • Ontario
  • M5H 2R2
  • Canada

Listings


Biography

Frontera Energy Corporation explores for, develops, and produces crude oil and natural gas in South America. The company has a portfolio of assets, which consists of interests in 40 exploration and product...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/28 02:21
End of Day Share Price2021/07/27 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.