TSX:PRQ

Stock Analysis Report

Petrus Resources

Executive Summary

Petrus Resources Ltd., an energy company, engages in the acquisition, exploration, development, and exploitation of oil and gas development assets in western Canada.

Snowflake

Fundamentals

Undervalued with moderate growth potential.

Risks

  • Petrus Resources has significant price volatility in the past 3 months.
  • Petrus Resources is covered by less than 3 analysts.

Share Price & News

How has Petrus Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

7.5%

TSX:PRQ

-1.5%

CA Oil and Gas

-0.9%

CA Market


1 Year Return

-79.7%

TSX:PRQ

-23.9%

CA Oil and Gas

-6.1%

CA Market

PRQ underperformed the Oil and Gas industry which returned -23.9% over the past year.

PRQ underperformed the Market in Canada which returned -6.1% over the past year.


Share holder returns

PRQIndustryMarket
7 Day7.5%-1.5%-0.9%
30 Day-15.7%-5.2%-3.4%
90 Day-34.8%-11.8%-3.1%
1 Year-79.7%-79.7%-20.6%-23.9%-2.8%-6.1%
3 Year-89.8%-89.8%-15.4%-23.8%13.2%3.1%
5 Yearn/a-36.7%-45.8%10.8%-4.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Petrus Resources undervalued based on future cash flows and its price relative to the stock market?

49%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Petrus Resources's share price is below the future cash flow value, and at a moderate discount (> 20%).

Petrus Resources's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Petrus Resources is good value based on earnings compared to the CA Oil and Gas industry average.

Petrus Resources is good value based on earnings compared to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Petrus Resources, we can't assess if its growth is good value.


Price Based on Value of Assets

Petrus Resources is good value based on assets compared to the CA Oil and Gas industry average.


Next Steps

Future Growth

How is Petrus Resources expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

6.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Petrus Resources's revenue is expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).

Petrus Resources's earnings are expected to grow by 18.7% yearly, however this is not considered high growth (20% yearly).

Petrus Resources's revenue growth is expected to exceed the Canada market average.

Petrus Resources's earnings growth is expected to exceed the Canada market average.

Petrus Resources's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Petrus Resources will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Petrus Resources performed over the past 5 years?

-5.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Petrus Resources's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Petrus Resources has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Petrus Resources has become profitable in the last year making it difficult to compare the CA Oil and Gas industry average.


Return on Equity

Petrus Resources has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Petrus Resources used its assets less efficiently than the CA Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Petrus Resources has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Petrus Resources's financial position?


Financial Position Analysis

Petrus Resources's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Petrus Resources's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Petrus Resources's level of debt (89.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (0.5% vs 89.1% today).

Debt is well covered by operating cash flow (30%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.5x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

What is Petrus Resources's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Petrus Resources's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Petrus Resources's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Petrus Resources has not reported any payouts.

Unable to verify if Petrus Resources's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Petrus Resources has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Petrus Resources's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Neil Korchinski (42yo)

2.8yrs

Tenure

CA$415,250

Compensation

Mr. Neil Korchinski, P. Eng., has been the Chief Executive Officer, President of Petrus Resources Ltd. since November 7, 2016. Mr. Korchinski served as the Chief Operating Officer and Vice President of Eng ...


CEO Compensation Analysis

Neil's remuneration is higher than average for companies of similar size in Canada.

Neil's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.7yrs

Average Tenure

The tenure for the Petrus Resources management team is about average.


Board Age and Tenure

3.8yrs

Average Tenure

58yo

Average Age

The tenure for the Petrus Resources board of directors is about average.


Insider Trading

More shares have been bought than sold by Petrus Resources individual insiders in the past 3 months.


Recent Insider Transactions

BuyCA$74,24028 Jun 19
Donald Gray
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares256,000
Max PriceCA$0.29
BuyCA$15,84827 Sep 18
Stephen White
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares17,500
Max PriceCA$0.91
BuyCA$3,60017 Sep 18
Stephen White
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceCA$0.90
BuyCA$17,88829 Aug 18
Donald Gray
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares17,200
Max PriceCA$1.04

Ownership Breakdown


Management Team

  • Neil Korchinski (42yo)

    President

    • Tenure: 2.8yrs
    • Compensation: CA$415.25k
  • Cheree Stephenson

    CFO & VP of Finance

    • Tenure: 3.8yrs
    • Compensation: CA$338.04k
  • Marcus Schlegel

    Vice President of Engineering

    • Tenure: 2.6yrs
    • Compensation: CA$280.59k
  • Robert Moncrieff

    Field Production Foreman

    • Tenure: 0.0yrs
    • Compensation: CA$162.20k
  • Brett Booth

    Vice President of Land

    • Tenure: 2.6yrs
    • Compensation: CA$259.20k
  • Ross Keilly

    Vice President of Exploration

    • Tenure: 2.6yrs
    • Compensation: CA$251.61k
  • Jamie Kuntz

    Manager of Facilities and Pipelines

    • Tenure: 5.1yrs
    • Compensation: CA$271.00k

Board Members

  • Stephen White (62yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: CA$68.49k
  • Don Gray (53yo)

    Chairman of the Board

    • Tenure: 3.8yrs
    • Compensation: CA$89.49k
  • Patrick Arnell (58yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: CA$74.49k
  • Neil Korchinski (42yo)

    President

    • Tenure: 2.8yrs
    • Compensation: CA$415.25k
  • Don Cormack (66yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: CA$78.49k

Company Information

Petrus Resources Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Petrus Resources Ltd.
  • Ticker: PRQ
  • Exchange: TSX
  • Founded:
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$10.636m
  • Shares outstanding: 49.47m
  • Website: https://www.petrusresources.com

Number of Employees


Location

  • Petrus Resources Ltd.
  • 240 – 4th Avenue SW
  • Suite 2400
  • Calgary
  • Alberta
  • T2P 5H4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRQTSX (The Toronto Stock Exchange)YesCommon SharesCACADFeb 2016
PTRU.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 2016
6P4DB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 2016

Biography

Petrus Resources Ltd., an energy company, engages in the acquisition, exploration, development, and exploitation of oil and gas development assets in western Canada. It primarily explores for natural gas,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 00:54
End of Day Share Price2019/08/22 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.