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WCP

Whitecap ResourcesTSX:WCP Stock Report

Market Cap

CA$4.7b

7D

5.1%

1Y

73.0%

Updated

07 Dec, 2021

Data

Company Financials +
WCP fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance3/6
Financial Health3/6
Dividends3/6

WCP Stock Overview

Whitecap Resources Inc., oil and gas company, acquires and develops petroleum and natural gas properties in Canada.

Price History & Performance

Summary of all time highs, changes and price drops for Whitecap Resources
Historical stock prices
Current Share PriceCA$7.44
52 Week HighCA$8.00
52 Week LowCA$4.13
Beta3.4
1 Month Change0.54%
3 Month Change36.02%
1 Year Change73.02%
3 Year Change75.47%
5 Year Change-38.97%
Change since IPO48.80%

Recent News & Updates

Oct 26
Whitecap Resources Inc. (TSE:WCP) Shares Could Be 47% Below Their Intrinsic Value Estimate

Whitecap Resources Inc. (TSE:WCP) Shares Could Be 47% Below Their Intrinsic Value Estimate

In this article we are going to estimate the intrinsic value of Whitecap Resources Inc. ( TSE:WCP ) by taking the...

Shareholder Returns

WCPCA Oil and GasCA Market
7D5.1%-2.0%-1.3%
1Y73.0%42.6%19.4%

Return vs Industry: WCP exceeded the Canadian Oil and Gas industry which returned 39.9% over the past year.

Return vs Market: WCP exceeded the Canadian Market which returned 18.4% over the past year.

Price Volatility

Is WCP's price volatile compared to industry and market?
WCP volatility
WCP Average Weekly Movement6.3%
Oil and Gas Industry Average Movement10.2%
Market Average Movement9.4%
10% most volatile stocks in CA Market17.2%
10% least volatile stocks in CA Market3.6%

Stable Share Price: WCP is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: WCP's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a278Grant Fagerheimhttps://www.wcap.ca

Whitecap Resources Inc., oil and gas company, acquires and develops petroleum and natural gas properties in Canada. Its principal properties are located in West Central Alberta, Northwest Alberta and British Columbia, Southeast Saskatchewan, West Central Saskatchewan, and Southwest Saskatchewan. As of February 24, 2021, it had a total proved plus probable reserves of 507,287 thousand barrels of oil equivalent.

Whitecap Resources Fundamentals Summary

How do Whitecap Resources's earnings and revenue compare to its market cap?
WCP fundamental statistics
Market CapCA$4.70b
Earnings (TTM)CA$1.88b
Revenue (TTM)CA$1.80b

2.5x

P/E Ratio

2.6x

P/S Ratio

Is WCP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
WCP income statement (TTM)
RevenueCA$1.80b
Cost of RevenueCA$559.67m
Gross ProfitCA$1.24b
Expenses-CA$647.12m
EarningsCA$1.88b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Apr 28, 2022

Earnings per share (EPS)2.98
Gross Margin68.86%
Net Profit Margin104.87%
Debt/Equity Ratio33.5%

How did WCP perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

5%

Payout Ratio

Valuation

Is Whitecap Resources undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WCP (CA$7.44) is trading below our estimate of fair value (CA$17.89)

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


Price To Earnings Ratio

PE vs Industry: WCP is good value based on its PE Ratio (2.5x) compared to the Canadian Oil and Gas industry average (7.5x).

PE vs Market: WCP is good value based on its PE Ratio (2.5x) compared to the Canadian market (12x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WCP is good value based on its PB Ratio (1.3x) compared to the CA Oil and Gas industry average (1.9x).


Future Growth

How is Whitecap Resources forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

19.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if WCP's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if WCP'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: WCP's revenue (19% per year) is forecast to grow faster than the Canadian market (5.3% per year).

High Growth Revenue: WCP's revenue (19% 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 WCP's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Whitecap Resources performed over the past 5 years?

-22.0%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: WCP became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: WCP has become profitable over the past 5 years, growing earnings by -22% per year.

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

Earnings vs Industry: WCP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (112.8%).


Return on Equity

High ROE: WCP's Return on Equity (51.4%) is considered outstanding.


Financial Health

How is Whitecap Resources's financial position?


Financial Position Analysis

Short Term Liabilities: WCP's short term assets (CA$308.0M) do not cover its short term liabilities (CA$595.2M).

Long Term Liabilities: WCP's short term assets (CA$308.0M) do not cover its long term liabilities (CA$2.6B).


Debt to Equity History and Analysis

Debt Level: WCP's net debt to equity ratio (33.1%) is considered satisfactory.

Reducing Debt: WCP's debt to equity ratio has increased from 27.2% to 33.5% over the past 5 years.

Debt Coverage: WCP's debt is well covered by operating cash flow (72.6%).

Interest Coverage: WCP's interest payments on its debt are well covered by EBIT (62.2x coverage).


Balance Sheet


Dividend

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

3.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WCP's dividend (3.63%) is higher than the bottom 25% of dividend payers in the Canadian market (1.59%).

High Dividend: WCP's dividend (3.63%) is low compared to the top 25% of dividend payers in the Canadian market (4.75%).


Stability and Growth of Payments

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

Growing Dividend: WCP has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (5.3%), WCP's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WCP's dividends in 3 years are forecast to be well covered by earnings (28.1% payout ratio).


Next Steps

Management

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

11.6yrs

Average management tenure


CEO

Grant Fagerheim (62 yo)

13.5yrs

Tenure

CA$2,113,041

Compensation

Mr. Grant Bradley Fagerheim has been Chief Executive Officer and President of Whitecap Resources Inc. since June 2008 and was its Chairman of the Board since June 2008. Mr. Fagerheim has extensive experien...


CEO Compensation Analysis

Compensation vs Market: Grant's total compensation ($USD1.65M) is below average for companies of similar size in the Canadian market ($USD2.85M).

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


Leadership Team

Experienced Management: WCP's management team is seasoned and experienced (11.6 years average tenure).


Board Members

Experienced Board: WCP's board of directors are considered experienced (9.9 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 54.8%.


Top Shareholders

Company Information

Whitecap Resources Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Whitecap Resources Inc.
  • Ticker: WCP
  • Exchange: TSX
  • Founded: NaN
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$4.703b
  • Shares outstanding: 632.06m
  • Website: https://www.wcap.ca

Number of Employees


Location

  • Whitecap Resources Inc.
  • Eighth Avenue Place, East Tower
  • 3800, 525 - 8th Avenue SW
  • Calgary
  • Alberta
  • T2P 1G1
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/07 00:32
End of Day Share Price2021/12/06 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.