Fact based stock research
Tourmaline Oil (TSX:TOU)

CA89156V1067

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

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Tourmaline Oil stock research in summary

tourmalineoil.com

ANALYSIS: With an Obermatt Combined Rank of 88 (better than 88% compared with investment alternatives), Tourmaline Oil (Oil & Gas Production, Canada) shares have much better financial characteristics than comparable stocks. Shares of Tourmaline Oil are low in value (priced high) with a consolidated Value Rank of 30 (worse than 70% of alternatives). But they show above-average growth (Growth Rank of 80) and are safely financed (Safety Rank of 90, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 88, is a strong buy recommendation based on Tourmaline Oil's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Tourmaline Oil exhibits low value (Obermatt Value Rank of 30), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 80). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 90) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	30
Growth Rank	80
Safety Rank	90
Combined Rank	88

Country	Canada
Industry	Oil & Gas Production
Index	Oil & Gas, TSX Composite
Size class	X-Large

This stock has achievements: Top 10 Stock.

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Tourmaline Oil

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	41	51	20	30
GROWTH
GROWTH	58	29	57	80
SAFETY
SAFETY	79	97	94	90
SENTIMENT
SENTIMENT	n/a	91	94	^new
360° VIEW
360° VIEW	n/a	89	86	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Tourmaline Oil is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	41	51	20	30
GROWTH
GROWTH	58	29	57	80
SAFETY
SAFETY	79	97	94	90
COMBINED
COMBINED	67	67	71	88

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Tourmaline Oil the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 30 (worse than 70% compared with alternatives), Tourmaline Oil shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Tourmaline Oil. Only Price-to-Profit (also referred to as price-earnings, P/E) indicates good stock value with a rank of 50, which means that the stock price compared with what market professionals expect for future profits is lower than for 50% of comparable companies, indicating a good value concerning Tourmaline Oil's profit levels. But Price-to-Sales is 25 which means that the stock price compared with what market professionals expect for future profits is higher than for 75% of comparable companies, indicating a low value concerning Tourmaline Oil's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 45 and for dividend yield, which is lower than for 62% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 30, is a hold recommendation based on Tourmaline Oil's stock price compared with the company's operational size and dividend yields. Can we rely on only one good value indicator? Only if we know the company well. In this case, a high Price-to-Profit Rank, while Price-to-Sales and Price-to-Book are both below the market typical levels, means that the company can charge higher prices for its products and needs less capital to produce them. If this is sustainable, then Tourmaline Oil is a good investment because profits count most in enterprise valuations. The low dividend yield indicates that the company is confident it can do something with the generated cash that is more valuable than paying the profits out to the shareholders in the form of dividends. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	21	28	22	25
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	53	59	37	50
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	33	76	38	45
DIVIDEND YIELD
DIVIDEND YIELD	57	43	46	38
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	41	51	20	30

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Tourmaline Oil; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 80 (better than 80% compared with alternatives) for 2024, Tourmaline Oil shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Tourmaline Oil. Sales Growth has a rank of 82 which means that currently, professionals expect the company to grow more than 82% of its competitors. Capital Growth is also above 34% of competitors with a rank of 85, and Stock Returns with the rank of 56 is also an outperformance. Only Profit Growth is low with a rank of 34 which means that currently, professionals expect the company to grow its profits less than 66% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 80, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Tourmaline Oil is a good growth stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	85	43	75	82
PROFIT GROWTH
PROFIT GROWTH	69	69	45	34
CAPITAL GROWTH
CAPITAL GROWTH	n/a	22	53	85
STOCK RETURNS
STOCK RETURNS	61	53	43	56
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	58	29	57	80

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Tourmaline Oil.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 90 (better than 90% compared with alternatives) for 2024, the company Tourmaline Oil has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Tourmaline Oil is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Tourmaline Oil. Leverage is at 87, meaning the company has a below-average debt-to-equity ratio. It has less debt than 87% of its competitors. Refinancing is at a rank of 55, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 55% of its competitors. Finally, Liquidity is also good at a rank of 90, which means that the company generates more profit to service its debt than 90% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 90 (better than 90% compared with alternatives), Tourmaline Oil has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Tourmaline Oil but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	71	95	94	87
REFINANCING
REFINANCING	33	57	60	55
LIQUIDITY
LIQUIDITY	85	97	97	90
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	79	97	94	90

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Tourmaline Oil and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	90	93	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	13	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	98	81	^new
MARKET PULSE
MARKET PULSE	n/a	78	54	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	91	94	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Tourmaline Oil.
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