Birchcliff Energy (BIR) AI Stock Analysis

• Market Cap: $1.61B
• Dividend Yield: 3.32%
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.82
• Revenue Growth: -15.60%
• EPS Growth: 85.49%
• Country: CA
• Employees: 231
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.05
• Shares Outstanding: 273,102,080
• 10 Day Avg. Volume: 1,952,311
• 30 Day Avg. Volume: 1,180,185
• PEG Ratio: 0.06
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 2.28
• P/FCF Ratio: -18.81
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 4.13
• Enterprise Value/Gross Profit: 7.30
• Enterprise Value/Ebitda: 6.80
• 1Y Price Target: $8.12
• Price Target Upside: 41.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 55 Neutral
• Price Target: C$6.00 ▲(4.71% Upside)

Birchcliff Energy's overall stock score reflects a combination of mixed financial performance and bearish technical indicators. While the company has shown revenue growth and improved profitability, operational challenges and cash flow issues remain significant concerns. The technical analysis indicates bearish momentum, which could further pressure the stock. The valuation is moderate, but not compelling enough to offset the operational risks.

Positive Factors

Negative Factors

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. The company’s revenue model is largely driven by the production volumes of these commodities, which are sold to various market participants including utilities, industrial customers, and other energy companies. Key revenue streams include the sale of natural gas, which typically constitutes the largest portion of their income, followed by crude oil and natural gas liquids. Birchcliff also engages in hedging strategies to manage price volatility, which can provide additional financial stability. Significant partnerships with midstream companies for transportation and processing services further enhance their earnings potential, ensuring efficient delivery to market and optimal pricing for their products.

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 indicate operational difficulties. The balance sheet is strong with low leverage, but increasing debt levels pose potential risks.

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	648.22M	601.44M	699.93M	1.20B	877.34M	523.99M
Gross Profit	366.68M	309.52M	406.52M	922.45M	616.53M	289.93M
EBITDA	393.84M	358.45M	268.88M	1.09B	648.14M	166.53M
Net Income	76.59M	56.10M	9.78M	656.83M	314.68M	-57.82M
Balance Sheet
Total Assets	3.47B	3.56B	3.25B	3.24B	3.19B	3.21B
Cash, Cash Equivalents and Short-Term Investments	31.00K	50.00K	55.00K	74.00K	63.00K	60.00K
Total Debt	643.80M	686.93M	384.71M	145.57M	554.57M	788.33M
Total Liabilities	1.23B	1.36B	1.03B	826.41M	1.27B	1.58B
Stockholders Equity	2.24B	2.20B	2.23B	2.41B	1.92B	1.63B
Cash Flow
Free Cash Flow	28.70M	-82.69M	12.53M	556.73M	282.89M	-101.49M
Operating Cash Flow	345.60M	200.31M	320.53M	925.27M	515.37M	188.18M
Investing Cash Flow	-320.36M	-293.36M	-338.86M	-338.54M	-247.38M	-278.66M
Financing Cash Flow	-25.32M	93.05M	18.32M	-586.73M	-267.98M	90.47M

Birchcliff Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BIR, the sentiment is Negative. The current price of 5.73 is below the 20-day moving average (MA) of 5.99, below the 50-day MA of 6.25, and below the 200-day MA of 6.13, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 28.07 is Positive, neither overbought nor oversold. The STOCH value of 41.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BIR.

Birchcliff Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POU	74 Outperform	C$3.27B	2.23	55.11%	4.45%	-18.29%	317.52%
HWX	74 Outperform	C$1.83B	9.88	25.11%	5.73%	8.47%	-1.60%
BTE	67 Neutral	C$2.60B	7.21	9.01%	2.76%	-7.76%	―
AAV	60 Neutral	C$1.94B	35.28	3.22%	―	24.90%	-33.81%
VET	57 Neutral	C$1.72B	-9.03	-6.87%	4.69%	-1.60%	76.21%
BIR	55 Neutral	$1.61B	20.92	3.27%	3.32%	-15.60%	85.49%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%