Gear Energy Ltd.

TSX:GXE Stock Report

Market Cap: CA$134.4m

Gear Energy Valuation

Is GXE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of GXE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GXE (CA$0.53) is trading below our estimate of fair value (CA$1.13)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GXE?

Key metric: As GXE is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for GXE. This is calculated by dividing GXE's market cap by their current earnings.
What is GXE's PE Ratio?
PE Ratio11.5x
EarningsCA$12.18m
Market CapCA$134.43m

Price to Earnings Ratio vs Peers

How does GXE's PE Ratio compare to its peers?

The above table shows the PE ratio for GXE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7.5x
LCX Lycos Energy
10.6xn/aCA$145.3m
BNE Bonterra Energy
4.7x-82.7%CA$127.3m
ORC.B Orca Energy Group
10.4xn/aCA$158.1m
CNE Canacol Energy
4.3x59.7%CA$116.3m
GXE Gear Energy
11.5xn/aCA$134.4m

Price-To-Earnings vs Peers: GXE is expensive based on its Price-To-Earnings Ratio (11.5x) compared to the peer average (7.8x).

Price to Earnings Ratio vs Industry

How does GXE's PE Ratio compare vs other companies in the CA Oil and Gas Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HAM Highwood Asset Management
1.3x-43.9%US$65.03m
ALPS.U Alpine Summit Energy Partners
1xn/aUS$24.02m
KUB.H Carcetti Capital
0.7xn/aUS$5.82m
GCOM Green Shift Commodities
1.4xn/aUS$4.93m
GXE 11.5xIndustry Avg. 11.0xNo. of Companies12PE0816243240+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GXE is expensive based on its Price-To-Earnings Ratio (11.5x) compared to the Canadian Oil and Gas industry average (11x).

Price to Earnings Ratio vs Fair Ratio

What is GXE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GXE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate GXE's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst GXE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$0.53
CA$0.83
+57.2%
14.1%CA$1.00CA$0.75n/a3
Nov ’25CA$0.52
CA$0.83
+60.3%
14.1%CA$1.00CA$0.75n/a3
Oct ’25CA$0.60
CA$0.92
+52.8%
12.9%CA$1.00CA$0.75n/a3
Sep ’25CA$0.67
CA$0.95
+41.8%
7.4%CA$1.00CA$0.85n/a3
Aug ’25CA$0.69
CA$0.98
+42.5%
10.4%CA$1.10CA$0.85n/a3
Jul ’25CA$0.69
CA$1.00
+44.9%
8.2%CA$1.10CA$0.90n/a3
Jun ’25CA$0.72
CA$1.00
+38.9%
8.2%CA$1.10CA$0.90n/a3
May ’25CA$0.71
CA$1.00
+40.8%
8.2%CA$1.10CA$0.90n/a3
Apr ’25CA$0.66
CA$0.97
+46.5%
12.9%CA$1.10CA$0.80n/a3
Mar ’25CA$0.67
CA$0.97
+44.3%
12.9%CA$1.10CA$0.80n/a3
Feb ’25CA$0.66
CA$1.03
+55.3%
2.4%CA$1.05CA$1.00n/a2
Jan ’25CA$0.64
CA$1.20
+87.5%
4.2%CA$1.25CA$1.15n/a2
Dec ’24CA$0.68
CA$1.23
+81.5%
2.0%CA$1.25CA$1.20n/a2
Nov ’24CA$0.82
CA$1.23
+49.4%
2.0%CA$1.25CA$1.20CA$0.522
Oct ’24CA$0.88
CA$1.27
+43.9%
13.4%CA$1.50CA$1.10CA$0.603
Sep ’24CA$0.86
CA$1.20
+39.5%
15.6%CA$1.50CA$1.00CA$0.674
Aug ’24CA$0.86
CA$1.20
+39.5%
15.6%CA$1.50CA$1.00CA$0.694
Jul ’24CA$0.96
CA$1.26
+31.5%
14.1%CA$1.50CA$1.00CA$0.694
Jun ’24CA$0.95
CA$1.26
+32.9%
14.1%CA$1.50CA$1.00CA$0.724
May ’24CA$1.04
CA$1.31
+26.2%
11.5%CA$1.50CA$1.10CA$0.714
Apr ’24CA$1.03
CA$1.31
+27.4%
11.5%CA$1.50CA$1.10CA$0.664
Mar ’24CA$1.08
CA$1.38
+27.3%
11.9%CA$1.50CA$1.10CA$0.674
Feb ’24CA$1.10
CA$1.50
+36.4%
14.7%CA$1.75CA$1.15CA$0.664
Jan ’24CA$1.13
CA$1.82
+60.8%
3.4%CA$1.90CA$1.75CA$0.643
Dec ’23CA$1.18
CA$1.88
+59.6%
5.5%CA$2.00CA$1.75CA$0.683
Nov ’23CA$1.43
CA$1.95
+36.4%
7.5%CA$2.10CA$1.75CA$0.823

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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