TSX:PMT

Stock Analysis Report

Perpetual Energy

Executive Summary

Perpetual Energy Inc. engages in the exploration, development, and marketing of oil and natural gas based energy in Canada.

Snowflake

Fundamentals

Mediocre balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-2.9%

PMT

-0.5%

CA Oil and Gas

-0.2%

CA Market


1 Year Return

-38.9%

PMT

-12.6%

CA Oil and Gas

1.5%

CA Market

Return vs Industry: PMT underperformed the Canadian Oil and Gas industry which returned -12.6% over the past year.

Return vs Market: PMT underperformed the Canadian Market which returned 1.5% over the past year.


Shareholder returns

PMTIndustryMarket
7 Day-2.9%-0.5%-0.2%
30 Day-8.3%-6.1%-3.5%
90 Day-26.7%-4.5%-1.8%
1 Year-38.9%-38.9%-8.7%-12.6%5.1%1.5%
3 Year-91.5%-91.5%-17.1%-25.5%13.3%3.2%
5 Year-99.4%-99.4%-21.5%-33.4%25.2%7.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.099x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate PMT's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate PMT's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

PE vs Market: PMT 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 PMT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PMT 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 Perpetual Energy forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-3.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

Earnings vs Market: Insufficient data to determine if PMT'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: PMT's revenue is expected to decline over the next 3 years (-3.7% per year).

High Growth Revenue: PMT's revenue is forecast to decline over the next 3 years (-3.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Perpetual Energy performed over the past 5 years?

-15.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PMT is unprofitable, and losses have increased over the past 5 years at a rate of -15.2% per year.

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

Earnings vs Industry: PMT is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (62.2%).


Return on Equity

High ROE: PMT has a negative Return on Equity (-53.4%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: PMT is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: PMT is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Perpetual Energy's financial position?


Financial Position Analysis

Short Term Liabilities: PMT's short term assets (CA$34.9M) do not cover its short term liabilities (CA$35.2M)

Long Term Liabilities: PMT's short term assets (34.9M) do not cover its long term liabilities (157.0M)


Debt to Equity History and Analysis

Debt Level: PMT's debt to equity ratio (127.3%) is considered high

Reducing Debt: PMT's debt to equity ratio has reduced from 442.7% to 127.3% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: PMT's debt is not covered by short term assets (assets are 0.3x debt).


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 PMT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PMT is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 48.1% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%6.0%industryaverage4.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

10.6yrs

Average management tenure


CEO

Sue Rose (54yo)

14.4yrs

Tenure

CA$746,536

Compensation

Ms. Susan L. Riddell Rose, also known as Sue, B.Sc. has been the Chief Executive Officer and President of Perpetual Energy Inc. since 2002 and has been its Acting Chairman since 2018. Ms. Rose served as th ...


CEO Compensation Analysis

Compensation vs. Market: Sue's total compensation ($USD568.40K) is above average for companies of similar size in the Canadian market ($USD131.81K).

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


Management Age and Tenure

10.6yrs

Average Tenure

Experienced Management: PMT's management team is seasoned and experienced (10.6 years average tenure).


Board Age and Tenure

10.5yrs

Average Tenure

66yo

Average Age

Experienced Board: PMT's board of directors are seasoned and experienced ( 10.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellCA$5,50014 Aug 19
Marcello Rapini
EntityIndividual
Role
Head of Marketing
Vice President of Marketing
Shares25,000
Max PriceCA$0.22
SellCA$4,71513 Aug 19
Marcello Rapini
EntityIndividual
Role
Head of Marketing
Vice President of Marketing
Shares20,500
Max PriceCA$0.23
SellCA$95909 Aug 19
Marcello Rapini
EntityIndividual
Role
Head of Marketing
Vice President of Marketing
Shares4,000
Max PriceCA$0.24

Ownership Breakdown


Management Team

  • Sue Rose (54yo)

    CEO, President & Acting Chairman

    • Tenure: 14.4yrs
    • Compensation: CA$746.54k
  • Gary Jackson (65yo)

    Vice President of Land

    • Tenure: 0yrs
    • Compensation: CA$735.90k
  • Marcello Rapini

    Vice President of Marketing

    • Tenure: 12.8yrs
    • Compensation: CA$528.26k
  • Jeff Green

    Vice President of Corporate & Engineering Services

    • Tenure: 10.8yrs
    • Compensation: CA$411.21k
  • J. Strong

    Corporate Counsel and Corporate Secretary

    • Tenure: 10.4yrs
  • Linda McKean

    Vice President of Exploration & Development

    • Tenure: 7.8yrs
    • Compensation: CA$419.38k
  • W. Schweitzer

    VP of Finance & CFO

    • Tenure: 2.4yrs
    • Compensation: CA$363.93k

Board Members

  • Robert Maitland (66yo)

    Independent Director

    • Tenure: 11.7yrs
    • Compensation: CA$77.11k
  • Ryan Shay

    Independent Director

    • Tenure: 2yrs
    • Compensation: CA$65.51k
  • Don Nelson (71yo)

    Independent Director

    • Tenure: 17.3yrs
    • Compensation: CA$60.61k
  • Howard Ward (74yo)

    Independent Director

    • Tenure: 17.3yrs
    • Compensation: CA$56.11k
  • Sue Rose (54yo)

    CEO, President & Acting Chairman

    • Tenure: 14.4yrs
    • Compensation: CA$746.54k
  • Geoff Merritt (64yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: CA$66.61k

Company Information

Perpetual Energy Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Perpetual Energy Inc.
  • Ticker: PMT
  • Exchange: TSX
  • Founded: 2010
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$9.938m
  • Shares outstanding: 60.23m
  • Website: https://www.perpetualenergyinc.com

Number of Employees


Location

  • Perpetual Energy Inc.
  • 605 5th Avenue SW
  • Suite 3200
  • Calgary
  • Alberta
  • T2P 3H5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PMTTSX (The Toronto Stock Exchange)YesCommon SharesCACADFeb 2003
AGGNDB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 2003
PMGY.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 2003

Biography

Perpetual Energy Inc. engages in the exploration, development, and marketing of oil and natural gas based energy in Canada. Its asset portfolio includes liquids-rich natural gas, shallow natural gas, and c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:47
End of Day Share Price2019/10/17 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.