Pine Cliff Energy (TSX:PNE) - Share price, News & Analysis

PNE fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	3/6
Financial Health	3/6
Dividends	2/6

PNE Stock Overview

Pine Cliff Energy Ltd. engages in the acquisition, exploration, development, and production of natural gas and oil in the Western Canadian Sedimentary Basin.

Rewards

Trading at 47.7% below our estimate of its fair value

Became profitable this year

Risk Analysis

High level of non-cash earnings

Has a high level of debt

Dividend of 5.89% is not well covered by earnings

Significant insider selling over the past 3 months

+ 1 more risk

Pine Cliff Energy Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Pine Cliff Energy
Historical stock prices
Current Share Price	CA$1.69
52 Week High	CA$1.88
52 Week Low	CA$0.29
Beta	0.81
1 Month Change	1.20%
3 Month Change	106.10%
1 Year Change	492.98%
3 Year Change	686.05%
5 Year Change	101.19%
Change since IPO	267.39%

Shareholder Returns

	PNE	CA Oil and Gas	CA Market
7D	-8.2%	-3.7%	-3.0%
1Y	493.0%	53.7%	4.2%

Return vs Industry: PNE exceeded the Canadian Oil and Gas industry which returned 53.7% over the past year.

Return vs Market: PNE exceeded the Canadian Market which returned 4.2% over the past year.

Price Volatility

Is PNE's price volatile compared to industry and market?
PNE volatility
PNE Average Weekly Movement	9.3%
Oil and Gas Industry Average Movement	10.2%
Market Average Movement	9.6%
10% most volatile stocks in CA Market	16.4%
10% least volatile stocks in CA Market	4.2%

Stable Share Price: PNE is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: PNE's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2004	78	Phil Hodge	https://www.pinecliffenergy.com

Pine Cliff Energy Ltd. engages in the acquisition, exploration, development, and production of natural gas and oil in the Western Canadian Sedimentary Basin. It primarily holds interests in natural gas assets in the Southern and Edson areas; and oil and natural gas assets in the Viking Kinsella and Ghost Pine area of Central Alberta. The coampny also holds interests in natural gas liquids assets in the Sundance, Carstairs, Garrington, and Harmattan areas of Alberta; and natural gas assets in the Cadillac area of Southern Saskatchewan.

Pine Cliff Energy Fundamentals Summary

How do Pine Cliff Energy's earnings and revenue compare to its market cap?
PNE fundamental statistics
Market Cap	CA$580.42m
Earnings (TTM)	CA$97.53m
Revenue (TTM)	CA$176.99m

6.0x

P/E Ratio

3.3x

P/S Ratio

Is PNE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PNE income statement (TTM)
Revenue	CA$176.99m
Cost of Revenue	CA$84.57m
Gross Profit	CA$92.41m
Other Expenses	-CA$5.12m
Earnings	CA$97.53m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.28
Gross Margin	52.22%
Net Profit Margin	55.11%
Debt/Equity Ratio	52.0%

How did PNE perform over the long term?

See historical performance and comparison

Dividends

5.9%

Current Dividend Yield

n/a

Payout Ratio

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

47.7%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: PNE (CA$1.69) is trading below our estimate of fair value (CA$3.23)

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

Price To Earnings Ratio

PE vs Industry: PNE is good value based on its PE Ratio (6x) compared to the Canadian Oil and Gas industry average (7.9x).

PE vs Market: PNE is good value based on its PE Ratio (6x) compared to the Canadian market (11.4x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: PNE is overvalued based on its PB Ratio (9.4x) compared to the CA Oil and Gas industry average (1.9x).

Future Growth

How is Pine Cliff Energy forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

2.8%

Forecasted Energy industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Pine Cliff Energy has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Pine Cliff Energy performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

31.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PNE has a high level of non-cash earnings.

Growing Profit Margin: PNE became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: PNE has become profitable over the past 5 years, growing earnings by 31.1% per year.

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

Earnings vs Industry: PNE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (185%).

Return on Equity

High ROE: PNE's Return on Equity (158.7%) is considered outstanding.

Financial Health

How is Pine Cliff Energy's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PNE's short term assets (CA$36.4M) exceed its short term liabilities (CA$34.0M).

Long Term Liabilities: PNE's short term assets (CA$36.4M) do not cover its long term liabilities (CA$279.3M).

Debt to Equity History and Analysis

Debt Level: PNE's net debt to equity ratio (41.5%) is considered high.

Reducing Debt: PNE's debt to equity ratio has increased from 30.9% to 52% over the past 5 years.

Debt Coverage: PNE's debt is well covered by operating cash flow (203.1%).

Interest Coverage: PNE's interest payments on its debt are well covered by EBIT (7.5x coverage).

Balance Sheet

Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

5.89%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PNE's dividend (5.89%) is higher than the bottom 25% of dividend payers in the Canadian market (1.9%).

High Dividend: PNE's dividend (5.89%) is in the top 25% of dividend payers in the Canadian market (5.01%)

Stability and Growth of Payments

Stable Dividend: Too early to tell whether PNE's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if PNE's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (232.7%), PNE's dividend payments are not well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Energy industry.

Management

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

7.3yrs

Average management tenure

CEO

Phil Hodge (55 yo)

10.33yrs

Tenure

CA$923,404

Compensation

Mr. Philip Blake Hodge, also known as Phil, B.Comm., LLB, serves as Director at Westport Fuel Systems Inc (former name Westport Innovations Inc) since January 25, 2022. He has been the Chief Executive Offi...

CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD714.06K) is about average for companies of similar size in the Canadian market ($USD987.80K).

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

Leadership Team

Experienced Management: PNE's management team is seasoned and experienced (7.3 years average tenure).

Board Members

Experienced Board: PNE's board of directors are considered experienced (6 years average tenure).

Ownership

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

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/15 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31