Birchcliff Energy (BIR) AI Stock Analysis

• Market Cap: C$1.92B
• Dividend Yield: 1.59%
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 26.1
• Beta (1Y): 1.07
• Revenue Growth: -9.76%
• EPS Growth: 374.65%
• Country: CA
• Employees: 231
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.05
• Shares Outstanding: 273,379,940
• 10 Day Avg. Volume: 1,497,523
• 30 Day Avg. Volume: 1,555,097
• PEG Ratio: 0.06
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 2.42
• P/FCF Ratio: -17.64
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$8.90
• Price Target Upside: 26.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: C$8.50 ▲(20.91% Upside)

Birchcliff Energy's overall stock score is driven by its solid financial performance and positive technical indicators. The company's strong cash flow and profitability support its financial health, while technical analysis suggests bullish momentum. However, the high P/E ratio indicates potential overvaluation, which tempers the overall score.

Positive Factors

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling reinvestment in growth opportunities and potential shareholder returns.

Profitability

Solid profitability margins indicate efficient operations and the ability to sustain competitive pricing and cost management.

Balance Sheet Health

A stable balance sheet with prudent leverage supports long-term financial stability and reduces risk of financial distress.

Negative Factors

Declining Equity and Assets

A decline in equity and assets could limit future growth potential and affect the company's ability to capitalize on new opportunities.

Revenue Growth Volatility

Inconsistent revenue growth can lead to unpredictable financial performance, impacting strategic planning and investment decisions.

Free Cash Flow Limitation

Limited free cash flow relative to net income may constrain the company's ability to reinvest in growth or return capital to shareholders.

Birchcliff Energy Business Overview & Revenue Model

Company Description

Birchcliff Energy Ltd., an intermediate oil and natural gas company, acquires, explores for, develops, and produces natural gas, light oil, condensate, and natural gas liquids in Western Canada. The company holds interests in the Montney/Doig resource play located approximately 95 km northwest of Grande Prairie, Alberta. Its asset portfolio also includes various other properties, including the Elmworth and Progress areas of Alberta. As of December 31, 2021, the company had interests in various gas plants, oil batteries, compressors, facilities, and infrastructure; and 200,712 net acres of undeveloped land, as well as proved plus probable reserves of 1,022 million barrels of oil equivalent. Birchcliff Energy Ltd. was incorporated in 2004 and is headquartered in Calgary, Canada.

How the Company Makes Money

Birchcliff Energy generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids produced from its extensive assets in the Peace River Arch region. The company leverages its operational efficiencies and advanced extraction technologies to optimize production rates and profitability. Key revenue streams include the direct sale of hydrocarbons to end-users and intermediaries in the energy market. Additionally, Birchcliff may engage in hedging activities to manage price volatility and secure more predictable cash flows. Strategic partnerships with industry players and transportation companies further enhance its market access and operational capabilities, contributing to its overall earnings.

Birchcliff Energy Financial Statement Overview

Summary

Birchcliff Energy shows a mixed financial performance with positive revenue growth and improved net profit margin. However, negative EBIT margins and cash flow challenges highlight operational risks. The balance sheet is strong with low leverage, but increasing debt levels require careful management.

Income Statement

Birchcliff Energy's income statement shows a mixed performance. The company has achieved a positive revenue growth rate of 2.25% in the TTM period, indicating a recovery from previous declines. However, the EBIT margin is negative, reflecting operational challenges. The net profit margin has improved significantly to 20.33% in the TTM, showcasing enhanced profitability. Despite these improvements, the volatility in margins suggests potential risks in maintaining consistent profitability.

Balance Sheet

The balance sheet of Birchcliff Energy is relatively strong, with a debt-to-equity ratio of 0.28, indicating a conservative leverage position. The return on equity has improved to 6.19% in the TTM, reflecting better utilization of equity. The equity ratio remains stable, suggesting a solid financial foundation. However, the increase in total debt over the years could pose future risks if not managed carefully.

Cash Flow

Cash flow analysis reveals some concerns for Birchcliff Energy. The free cash flow growth rate is negative, indicating challenges in generating free cash flow. The operating cash flow to net income ratio is strong at 2.04, suggesting efficient cash generation relative to net income. However, the negative free cash flow to net income ratio highlights potential issues in sustaining free cash flow, which could impact future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	670.33M	601.44M	699.93M	1.20B	877.34M	523.99M
Gross Profit	384.58M	309.52M	406.52M	922.45M	616.53M	289.93M
EBITDA	390.31M	358.45M	268.88M	1.09B	648.14M	166.53M
Net Income	72.92M	56.10M	9.78M	656.83M	314.68M	-57.82M
Balance Sheet
Total Assets	3.43B	3.56B	3.25B	3.24B	3.19B	3.21B
Cash, Cash Equivalents and Short-Term Investments	66.00K	50.00K	55.00K	74.00K	63.00K	60.00K
Total Debt	635.76M	686.93M	384.71M	145.57M	554.57M	788.33M
Total Liabilities	1.21B	1.36B	1.03B	826.41M	1.27B	1.58B
Stockholders Equity	2.22B	2.20B	2.23B	2.41B	1.92B	1.63B
Cash Flow
Free Cash Flow	104.80M	-82.69M	12.53M	556.73M	282.89M	-101.49M
Operating Cash Flow	358.16M	200.31M	320.53M	925.27M	515.37M	188.18M
Investing Cash Flow	-337.65M	-293.36M	-338.86M	-338.54M	-247.38M	-278.66M
Financing Cash Flow	-20.52M	93.05M	18.32M	-586.73M	-267.98M	90.47M

Birchcliff Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.03
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BIR, the sentiment is Neutral. The current price of 7.03 is below the 20-day moving average (MA) of 7.33, below the 50-day MA of 7.20, and above the 200-day MA of 6.57, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 40.25 is Neutral, neither overbought nor oversold. The STOCH value of 9.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:BIR.

Birchcliff Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HWX	79 Outperform	C$2.13B	12.65	23.55%	4.58%	6.44%	-6.74%
PXT	76 Outperform	C$1.68B	11.12	5.77%	8.48%	-20.07%	-53.33%
FRU	75 Outperform	C$2.40B	18.45	13.00%	7.05%	2.52%	-8.32%
BIR	70 Neutral	C$1.92B	26.08	3.16%	1.59%	-9.76%	374.65%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
VET	64 Neutral	C$1.66B	-7.43	2.34%	4.60%	-2.32%	70.14%
AAV	58 Neutral	C$1.82B	30.58	3.69%	―	27.84%	28.87%