TSX:IPCO

Stock Analysis Report

International Petroleum

Executive Summary

International Petroleum Corporation operates as an oil and gas exploration and production company.

Snowflake

Fundamentals

Good value with proven track record.

Share Price & News

How has International Petroleum's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.0%

IPCO

1.2%

CA Oil and Gas

0.3%

CA Market


1 Year Return

-25.1%

IPCO

-13.3%

CA Oil and Gas

0.1%

CA Market

Return vs Industry: IPCO underperformed the Canadian Oil and Gas industry which returned -13.3% over the past year.

Return vs Market: IPCO underperformed the Canadian Market which returned 0.1% over the past year.


Shareholder returns

IPCOIndustryMarket
7 Day2.0%1.2%0.3%
30 Day-14.3%-4.7%-2.5%
90 Day-17.0%-4.0%-1.4%
1 Year-25.1%-25.1%-9.3%-13.3%3.6%0.1%
3 Yearn/a-15.8%-24.3%14.3%4.1%
5 Yearn/a-22.2%-34.0%25.0%6.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is International Petroleum undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: IPCO (CA$4.69) is trading below our estimate of fair value (CA$12.67)

Significantly Undervalued: IPCO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IPCO is good value based on its PE Ratio (4x) compared to the Oil and Gas industry average (8.3x).

PE vs Market: IPCO is good value based on its PE Ratio (4x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: IPCO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: IPCO is overvalued based on its PB Ratio (0.8x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is International Petroleum forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IPCO's earnings are forecast to decline over the next 3 years (-6.9% per year).

Earnings vs Market: IPCO's earnings are forecast to decline over the next 3 years (-6.9% per year).

High Growth Earnings: IPCO's earnings are forecast to decline over the next 3 years.

Revenue vs Market: IPCO's revenue (1.3% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: IPCO's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: IPCO's Return on Equity is forecast to be low in 3 years time (7%).


Next Steps

Past Performance

How has International Petroleum performed over the past 5 years?

54.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: IPCO's earnings have grown significantly by 54.4% per year over the past 5 years.

Accelerating Growth: IPCO's earnings growth over the past year (94.6%) exceeds its 5-year average (54.4% per year).

Earnings vs Industry: IPCO earnings growth over the past year (94.6%) exceeded the Oil and Gas industry 62.2%.


Return on Equity

High ROE: IPCO's Return on Equity (15%) is considered low.


Return on Assets

ROA vs Industry: IPCO has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is International Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: IPCO's short term assets ($103.7M) exceeds its short term liabilities ($86.0M)

Long Term Liabilities: IPCO's short term assets (103.7M) do not cover its long term liabilities (481.7M)


Debt to Equity History and Analysis

Debt Level: IPCO's debt to equity ratio (32%) is considered satisfactory

Reducing Debt: Insufficient data to determine if IPCO's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: IPCO's debt is well covered by operating cash flow (99.2%).

Interest Coverage: IPCO's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: IPCO's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is International Petroleum's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage4.9%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate IPCO'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 IPCO's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IPCO'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 International Petroleum's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Mike Nicholson (48yo)

2.5yrs

Tenure

US$2,477,428

Compensation

Mr. Mike Nicholson serves as Chief Executive Officer and President since April 2017 and Director of International Petroleum Corporation since February 20, 2017. Mr. Nicholson served as the Chief Financial  ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Mike's total compensation is reasonable compared to companies of similar size in the Canadian market.

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


Management Age and Tenure

2.5yrs

Average Tenure

48yo

Average Age

Experienced Management: IPCO's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

59yo

Average Age

Experienced Board: IPCO's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$700,22012 Aug 19
Lukas Lundin
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares150,000
Max PriceUS$4.67
SellUS$307,94528 Jun 19
John Festival
EntityIndividual
Role
Member of the Board of Directors
Director
Shares50,816
Max PriceUS$6.06
BuyUS$294,99325 Jun 19
Chris Bruijnzeels
EntityIndividual
Role
Member of the Board of Directors
Director
Shares50,000
Max PriceUS$5.90
BuyUS$3,470,46611 Dec 18
Nemesia S.A.R.L.
EntityCompany
Shares705,058
Max PriceUS$4.92
BuyUS$25,35526 Nov 18
Rebecca Gordon
EntityIndividual
Role
Head of Investor Relations
Vice President of Corporate Planning & Investor Relations
Shares5,500
Max PriceUS$4.61
BuyUS$38,73414 Nov 18
Rebecca Gordon
EntityIndividual
Role
Head of Investor Relations
Vice President of Corporate Planning & Investor Relations
Shares6,400
Max PriceUS$6.05

Ownership Breakdown


Management Team

  • Jeffrey Fountain (50yo)

    General Counsel & Corporate Secretary

    • Tenure: 2.5yrs
    • Compensation: US$1.40m
  • Mike Nicholson (48yo)

    President

    • Tenure: 2.5yrs
    • Compensation: US$2.48m
  • Chris Hogue (45yo)

    Senior Vice President of Canada

    • Tenure: 0.8yrs
  • Ed Sobel (55yo)

    Vice President of Exploration

    • Tenure: 0.8yrs
  • Christophe Nerguararian (44yo)

    Chief Financial Officer

    • Tenure: 2.5yrs
    • Compensation: US$1.44m
  • Daniel Fitzgerald

    Chief Operating Officer

    • Tenure: 2.5yrs
    • Compensation: US$890.88k
  • Rebecca Gordon

    Vice President of Corporate Planning & Investor Relations

    • Tenure: 2.5yrs

Board Members

  • Don Charter (63yo)

    Director

    • Tenure: 2.6yrs
    • Compensation: US$150.06k
  • Lukas Lundin (61yo)

    Chairman of the Board

    • Tenure: 2.6yrs
    • Compensation: US$150.06k
  • Charles Ashley Heppenstall (57yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$139.83k
  • Daniella Dimitrov (49yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$84.25k
  • John Festival (58yo)

    Director

    • Tenure: 0.8yrs
  • Torstein Sanness (72yo)

    Director

    • Tenure: 2.6yrs
    • Compensation: US$115.96k
  • Chris Bruijnzeels (60yo)

    Director

    • Tenure: 2.6yrs
    • Compensation: US$102.32k
  • Mike Nicholson (48yo)

    President

    • Tenure: 2.5yrs
    • Compensation: US$2.48m

Company Information

International Petroleum Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: International Petroleum Corporation
  • Ticker: IPCO
  • Exchange: TSX
  • Founded: 2017
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$767.847m
  • Shares outstanding: 163.72m
  • Website: https://www.international-petroleum.com

Number of Employees


Location

  • International Petroleum Corporation
  • 885 West Georgia Street
  • Suite 2000
  • Vancouver
  • British Columbia
  • V6C 3E8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IPCOTSX (The Toronto Stock Exchange)YesCommon SharesCACADApr 2017
IPCOOM (OMX Nordic Exchange Stockholm)YesCommon SharesSESEKApr 2017
IPTDB (Deutsche Boerse AG)YesCommon SharesDEEURApr 2017
IPCF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDApr 2017
0V1LLSE (London Stock Exchange)YesCommon SharesGBSEKApr 2017
IPCO NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNApr 2017
IPCOSBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBSEKApr 2017

Biography

International Petroleum Corporation operates as an oil and gas exploration and production company. The company holds interests in a portfolio of oil and gas assets located in Alberta and Saskatchewan, Cana ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 00:40
End of Day Share Price2019/10/15 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.