TSX:TOG

Stock Analysis Report

TORC Oil & Gas

Executive Summary

TORC Oil & Gas Ltd. engages in the exploration and production of petroleum and natural gas in the Western Canadian Sedimentary Basin.

Snowflake

Fundamentals

Reasonable growth potential and fair value.

Share Price & News

How has TORC Oil & Gas's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.4%

TOG

0.4%

CA Oil and Gas

0.2%

CA Market


1 Year Return

-31.1%

TOG

-9.1%

CA Oil and Gas

3.5%

CA Market

Return vs Industry: TOG underperformed the Canadian Oil and Gas industry which returned -9.1% over the past year.

Return vs Market: TOG underperformed the Canadian Market which returned 3.5% over the past year.


Shareholder returns

TOGIndustryMarket
7 Day1.4%0.4%0.2%
30 Day-13.1%-5.5%-3.3%
90 Day-7.8%-2.0%-1.9%
1 Year-26.5%-31.1%-5.0%-9.1%7.3%3.5%
3 Year-48.2%-54.9%-15.3%-23.9%14.7%4.4%
5 Year-58.1%-67.5%-21.7%-33.6%26.2%7.7%

Price Volatility Vs. Market

How volatile is TORC Oil & Gas's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is TORC Oil & Gas undervalued compared to its fair value and its price relative to the market?

23.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TOG (CA$3.57) is trading below our estimate of fair value (CA$4.64)

Significantly Below Fair Value: TOG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TOG is poor value based on its PE Ratio (47.8x) compared to the Oil and Gas industry average (8.4x).

PE vs Market: TOG is poor value based on its PE Ratio (47.8x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: TOG is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: TOG is good value based on its PB Ratio (0.5x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is TORC Oil & Gas forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

64.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TOG's forecast earnings growth (64.1% per year) is above the savings rate (1.9%).

Earnings vs Market: TOG's earnings (64.1% per year) are forecast to grow faster than the Canadian market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TOG's revenue (9.5% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: TOG's revenue (9.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has TORC Oil & Gas performed over the past 5 years?

30.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TOG's earnings have grown significantly by 30.6% per year over the past 5 years.

Accelerating Growth: TOG's earnings growth over the past year (481.1%) exceeds its 5-year average (30.6% per year).

Earnings vs Industry: TOG earnings growth over the past year (481.1%) exceeded the Oil and Gas industry 62.2%.


Return on Equity

High ROE: TOG's Return on Equity (1.1%) is considered low.


Return on Assets

ROA vs Industry: TOG's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is TORC Oil & Gas's financial position?


Financial Position Analysis

Short Term Liabilities: TOG's short term assets (CA$43.5M) do not cover its short term liabilities (CA$106.6M)

Long Term Liabilities: TOG's short term assets (43.5M) do not cover its long term liabilities (729.4M)


Debt to Equity History and Analysis

Debt Level: TOG's debt to equity ratio (20%) is considered satisfactory

Reducing Debt: TOG's debt to equity ratio has increased from 14.6% to 20% over the past 5 years.

Debt Coverage: TOG's debt is well covered by operating cash flow (105%).

Interest Coverage: TOG's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: TOG's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is TORC Oil & Gas's current dividend yield, its reliability and sustainability?

8.40%

Current Dividend Yield


Upcoming Dividend Payment

Purchase TORC Oil & Gas before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company8.4%marketbottom25%2.0%markettop25%5.9%industryaverage4.8%forecastin3Years8.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TOG's dividend (8.4%) is higher than the bottom 25% of dividend payers in the Canadian market (1.98%).

High Dividend: TOG's dividend (8.4%) is in the top 25% of dividend payers in the Canadian market (5.92%)

Stable Dividend: Whilst dividend payments have been stable, TOG has been paying a dividend for less than 10 years.

Growing Dividend: TOG has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (361.5%), TOG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TOG's dividends in 3 years are not forecast to be well covered by earnings (141.9% payout ratio).


Next Steps

Management

What is the CEO of TORC Oil & Gas's salary, the management and board of directors tenure and is there insider trading?

6.5yrs

Average board tenure


CEO

Brett Herman (51yo)

0yrs

Tenure

CA$2,487,922

Compensation

Mr. Brett Herman, CA, serves as the President and Chief Executive Officer of TORC Oil & Gas Ltd. Mr. Herman serves as the Chief Executive Officer and President of PetroPembina Exploration Ltd. Mr. Herman s ...


CEO Compensation Analysis

Compensation vs. Market: Brett's total compensation ($USD1.90M) is about average for companies of similar size in the Canadian market ($USD1.13M).

Compensation vs Earnings: Brett's compensation has increased by more than 20% in the past year.


Board Age and Tenure

6.5yrs

Average Tenure

60yo

Average Age

Experienced Board: TOG's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyCA$18,65612 Aug 19
Mary-Jo Case
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,270
Max PriceCA$3.54
BuyCA$67,19913 May 19
Jason Zabinsky
EntityIndividual
Role
Chief Financial Officer
VP of Finance & CFO
Shares14,237
Max PriceCA$4.72
SellCA$67,19913 May 19
Jason Zabinsky
EntityIndividual
Role
Chief Financial Officer
VP of Finance & CFO
Shares14,237
Max PriceCA$4.72
BuyCA$22,50010 Jan 19
John Gordon
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceCA$4.50

Ownership Breakdown


Management Team

  • Brett Herman (51yo)

    President

    • Tenure: 0yrs
    • Compensation: CA$2.49m
  • Jason Zabinsky

    VP of Finance & CFO

    • Tenure: 0yrs
    • Compensation: CA$1.29m
  • Shane Manchester

    Vice President of Operations

    • Tenure: 6.8yrs
    • Compensation: CA$975.87k
  • Marvin Tang

    VP & Controller

    • Tenure: 3.6yrs

Board Members

  • John Brussa (62yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: CA$185.00k
  • R. Lawrence (45yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: CA$180.00k
  • Mary-Jo Case (60yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: CA$180.00k
  • Brett Herman (51yo)

    President

    • Tenure: 0yrs
    • Compensation: CA$2.49m
  • M. Chernoff (53yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: CA$180.00k
  • Dale Shwed (60yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: CA$185.00k
  • Dave Johnson (68yo)

    Independent Chairman

    • Tenure: 5.9yrs
    • Compensation: CA$190.00k
  • John Gordon (62yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: CA$4.78k

Company Information

TORC Oil & Gas Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TORC Oil & Gas Ltd.
  • Ticker: TOG
  • Exchange: TSX
  • Founded: 2010
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$783.112m
  • Shares outstanding: 219.36m
  • Website: https://www.torcoil.com

Number of Employees


Location

  • TORC Oil & Gas Ltd.
  • Eighth Avenue Place
  • Suite 1800
  • Calgary
  • Alberta
  • T2P 1G1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FVENDB (Deutsche Boerse AG)YesClass A Voting Common SharesDEEURNov 2012
VREY.FOTCPK (Pink Sheets LLC)YesClass A Voting Common SharesUSUSDNov 2012
TOGTSX (The Toronto Stock Exchange)YesClass A Voting Common SharesCACADNov 2012

Biography

TORC Oil & Gas Ltd. engages in the exploration and production of petroleum and natural gas in the Western Canadian Sedimentary Basin. The company’s principal properties are located in the southeast Saskatc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:28
End of Day Share Price2019/10/22 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.