DB:J6I

Stock Analysis Report

Whitecap Resources

Executive Summary

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


Snowflake Analysis

Fair value with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: J6I has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.5%

J6I

-2.8%

DE Oil and Gas

-0.9%

DE Market


1 Year Return

2.8%

J6I

74.7%

DE Oil and Gas

12.8%

DE Market

Return vs Industry: J6I underperformed the German Oil and Gas industry which returned 74.7% over the past year.

Return vs Market: J6I underperformed the German Market which returned 12.8% over the past year.


Shareholder returns

J6IIndustryMarket
7 Day2.5%-2.8%-0.9%
30 Day-3.5%-1.1%0.6%
90 Day20.4%25.7%2.9%
1 Year10.9%2.8%79.7%74.7%16.3%12.8%
3 Year-51.7%-58.5%13.1%3.8%15.8%5.7%
5 Year-54.6%-64.7%310.6%247.0%19.7%3.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

5.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: J6I (€3.3) is trading below our estimate of fair value (€3.47)

Significantly Below Fair Value: J6I is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: J6I is poor value based on its PE Ratio (36.1x) compared to the Oil and Gas industry average (10.7x).

PE vs Market: J6I is poor value based on its PE Ratio (36.1x) compared to the German market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: J6I is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: J6I is good value based on its PB Ratio (0.6x) compared to the DE Oil and Gas industry average (1.4x).


Next Steps

Future Growth

How is Whitecap Resources forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

47.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: J6I's forecast earnings growth (47.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: J6I's earnings (47.6% per year) are forecast to grow faster than the German market (13% per year).

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

Revenue vs Market: J6I's revenue (0.2% per year) is forecast to grow slower than the German market (5.2% per year).

High Growth Revenue: J6I's revenue (0.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: J6I's Return on Equity is forecast to be low in 3 years time (1.3%).


Next Steps

Past Performance

How has Whitecap Resources performed over the past 5 years?

-10.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: J6I has high quality earnings.

Growing Profit Margin: J6I became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: J6I's earnings have declined by -10.6% per year over the past 5 years.

Accelerating Growth: J6I has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: J6I has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-5.1%).


Return on Equity

High ROE: J6I's Return on Equity (1.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Whitecap Resources's financial position?


Financial Position Analysis

Short Term Liabilities: J6I's short term assets (CA$179.8M) do not cover its short term liabilities (CA$266.3M).

Long Term Liabilities: J6I's short term assets (CA$179.8M) do not cover its long term liabilities (CA$2.6B).


Debt to Equity History and Analysis

Debt Level: J6I's debt to equity ratio (36.5%) is considered satisfactory.

Reducing Debt: J6I's debt to equity ratio has increased from 31.2% to 36.5% over the past 5 years.

Debt Coverage: J6I's debt is well covered by operating cash flow (55.5%).

Interest Coverage: J6I's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet

Inventory Level: J6I has a high level of physical assets or inventory.

Debt Coverage by Assets: J6I's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

7.11%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Whitecap Resources before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company7.1%marketbottom25%1.3%markettop25%3.6%industryaverage6.3%forecastin3Years7.2%

Current dividend yield vs market & industry

Notable Dividend: J6I's dividend (7.11%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: J6I's dividend (7.11%) is in the top 25% of dividend payers in the German market (3.63%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, J6I has been paying a dividend for less than 10 years.

Growing Dividend: J6I has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (246.4%), J6I's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: J6I's dividends in 3 years are not forecast to be well covered by earnings (231.4% payout ratio).


Next Steps

Management

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

10.3yrs

Average management tenure


CEO

Grant Fagerheim (60yo)

11.7yrs

Tenure

CA$3,553,306

Compensation

Mr. Grant Bradley Fagerheim has been the Chairman, Chief Executive Officer and President of Whitecap Resources Inc. since June 2008. Mr. Fagerheim has 30 years of diverse experience in both the upstream an ...


CEO Compensation Analysis

Compensation vs Market: Grant's total compensation ($USD2.69M) is above average for companies of similar size in the German market ($USD1.52M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Grant Fagerheim
President11.7yrsCA$3.55m0.70% CA$9.6m
Thanh Kang
Chief Financial Officer10.4yrsCA$1.82m0.17% CA$2.3m
Joel Armstrong
Vice President of Production & Operations9.8yrsCA$1.53m0.060% CA$821.7k
Darin Dunlop
Vice President of Engineering10.3yrsCA$1.53m0.12% CA$1.6m
Andrew Bullock
Vice President of Exploration & Geosciences0yrsno data0.038% CA$515.0k
Jeffrey Zdunich
VP of Finance & Controller8.9yrsno data0.043% CA$585.6k

10.3yrs

Average Tenure

52yo

Average Age

Experienced Management: J6I's management team is seasoned and experienced (10.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Grant Fagerheim
President11.7yrsCA$3.55m0.70% CA$9.6m
Kenneth Stickland
Independent Chairman of the Board0yrsCA$179.55k0.017% CA$231.8k
Grant Zawalsky
Independent Director11.7yrsCA$159.55k0.16% CA$2.2m
Heather Culbert
Independent Director2.8yrsCA$159.55k0.012% CA$170.4k
Gregory Fletcher
Independent Director9.4yrsCA$159.55k0.030% CA$405.8k
Stephen Nikiforuk
Independent Director10.5yrsCA$165.55k0.029% CA$392.7k
Glenn McNamara
Independent Director9.4yrsCA$171.55k0.030% CA$410.2k
Daryl Gilbert
Independent Director4.6yrsCA$165.55k0.015% CA$204.9k
Bradley Wall
Director0.6yrsno data0.0022% CA$30.9k

9.4yrs

Average Tenure

62.5yo

Average Age

Experienced Board: J6I's board of directors are considered experienced (9.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: J6I insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Whitecap Resources Inc.
  • Ticker: J6I
  • Exchange: DB
  • Founded:
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$1.970b
  • Listing Market Cap: CA$1.373b
  • Shares outstanding: 409.62m
  • Website: https://www.wcap.ca

Number of Employees


Location

  • Whitecap Resources Inc.
  • 525 – 8th Avenue South West
  • Suite 3800
  • Calgary
  • Alberta
  • T2P 1G1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WCPTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 2010
J6IDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2010
SPGY.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2010

Biography

Whitecap Resources Inc. 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 Southeast Saskatchewan. Whitecap Resources Inc. is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 21:44
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
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.