TSXV:WCE

Stock Analysis Report

Executive Summary

WesCan Energy Corp., a junior public resource company, explores for, develops, and produces oil and gas properties in Canada and the United States.


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WCE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

n/a

WCE

2.8%

CA Oil and Gas

4.5%

CA Market


1 Year Return

-66.7%

WCE

-44.8%

CA Oil and Gas

-24.5%

CA Market

Return vs Industry: WCE underperformed the Canadian Oil and Gas industry which returned -44.8% over the past year.

Return vs Market: WCE underperformed the Canadian Market which returned -24.5% over the past year.


Shareholder returns

WCEIndustryMarket
7 Dayn/a2.8%4.5%
30 Day0%-37.8%-20.1%
90 Dayn/a-44.8%-24.9%
1 Year-66.7%-66.7%-42.0%-44.8%-22.0%-24.5%
3 Year-33.3%-33.3%-46.4%-52.6%-14.2%-22.2%
5 Year-42.9%-42.9%-48.0%-56.8%-1.9%-16.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.21x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: WCE is good value based on its PB Ratio (0.2x) compared to the CA Oil and Gas industry average (0.4x).


Next Steps

Future Growth

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

-3.6%

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 WesCan 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.


Next Steps

Past Performance

How has WesCan Energy performed over the past 5 years?

-24.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WCE is currently unprofitable.

Growing Profit Margin: WCE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WCE is unprofitable, and losses have increased over the past 5 years at a rate of -24.8% per year.

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

Earnings vs Industry: WCE is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-2.5%).


Return on Equity

High ROE: WCE has a negative Return on Equity (-21.89%), as it is currently unprofitable.


Next Steps

Financial Health

How is WesCan Energy's financial position?


Financial Position Analysis

Short Term Liabilities: WCE's short term assets (CA$599.1K) do not cover its short term liabilities (CA$1.8M).

Long Term Liabilities: WCE's short term assets (CA$599.1K) do not cover its long term liabilities (CA$1.6M).


Debt to Equity History and Analysis

Debt Level: WCE's debt to equity ratio (28.8%) is considered satisfactory.

Reducing Debt: WCE had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

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

Debt Coverage by Assets: WCE's debt is not covered by short term assets (assets are 0.7x 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: WCE has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: WCE has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WCE's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WCE's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

7.4yrs

Average management tenure


CEO

Greg Busby

7.42s

Tenure

CA$185,000

Compensation

Mr. Greg T. Busby has been the Chief Executive Officer and President of Wescan Energy Corp. since September 14, 2012. Mr. Busby served as the Chief Executive Officer and President of Tuscany Energy Ltd. fr ...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD130.84K) is about average for companies of similar size in the Canadian market ($USD159.13K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Greg Busby
President7.42yrsCA$185.00k4.1% CA$25.7k
John Cassels
CFO & VP of Finance6.83yrsno datano data
Leigh Stewart
Corporate Secretary7.58yrsno datano data

7.4yrs

Average Tenure

Experienced Management: WCE's management team is seasoned and experienced (7.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Greg Busby
President7.42yrsCA$185.00k4.1% CA$25.7k
Michael Robichaud
Independent Director15.25yrsno data0.081% CA$505.0
Richard Orman
Chairman7.42yrsno data0.18% CA$1.1k
Alfredo De Leon Cu
Independent Director7.83yrsno data0.019% CA$120.0

7.6yrs

Average Tenure

Experienced Board: WCE's board of directors are considered experienced (7.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: WCE 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 diluted in the past year, with total shares outstanding growing by 4.8%.


Top Shareholders

Company Information

WesCan Energy Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: WesCan Energy Corp.
  • Ticker: WCE
  • Exchange: TSXV
  • Founded: 1993
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$627.193k
  • Shares outstanding: 31.36m
  • Website: https://www.wescanenergycorp.com

Location

  • WesCan Energy Corp.
  • 520 – 5th Avenue SW
  • Suite 2500
  • Calgary
  • Alberta
  • T2P 3R7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WCETSXV (TSX Venture Exchange)YesCommon SharesCACADJun 1994

Biography

WesCan Energy Corp., a junior public resource company, explores for, develops, and produces oil and gas properties in Canada and the United States. It holds interests in petroleum and natural gas assets located in east-central Alberta. The company was formerly known as Great Pacific International Inc. and changed its name to WesCan Energy Corp. in October 2012. WesCan Energy Corp. was incorporated in 1993 and is based in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 01:34
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.