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International Petroleum

TSX:IPCO
Snowflake Description

Very undervalued with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IPCO
TSX
CA$273M
Market Cap
  1. Home
  2. CA
  3. Energy
Company description

International Petroleum Corporation explores for, develops, and produces oil and gas. The last earnings update was 46 days ago. More info.


Add to Portfolio Compare Print
  • International Petroleum has significant price volatility in the past 3 months.
IPCO Share Price and Events
7 Day Returns
2.9%
TSX:IPCO
7%
CA Oil and Gas
7.1%
CA Market
1 Year Returns
-71.9%
TSX:IPCO
-46%
CA Oil and Gas
-25.3%
CA Market
IPCO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
International Petroleum (IPCO) 2.9% -61.9% -69.5% -71.9% - -
CA Oil and Gas 7% -40.8% -46.8% -46% -53.7% -57.4%
CA Market 7.1% -24.1% -26.7% -25.3% -23.4% -17.5%
1 Year Return vs Industry and Market
  • IPCO underperformed the Oil and Gas industry which returned -46% over the past year.
  • IPCO underperformed the Market in Canada which returned -25.3% over the past year.
Price Volatility
IPCO
Industry
5yr Volatility vs Market

IPCO Value

 Is International Petroleum undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of International Petroleum to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for International Petroleum.

TSX:IPCO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.1%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:IPCO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.83
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.825 (1 + (1- 26.5%) (127.81%))
1.403
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.4
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (1.403 * 5.44%)
9.07%

Discounted Cash Flow Calculation for TSX:IPCO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for International Petroleum is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:IPCO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.07%)
2020 1.50 Analyst x4 1.38
2021 37.75 Analyst x4 31.73
2022 133.00 Analyst x2 102.50
2023 149.50 Analyst x2 105.64
2024 122.00 Analyst x2 79.04
2025 106.64 Est @ -12.59% 63.34
2026 97.71 Est @ -8.38% 53.21
2027 92.40 Est @ -5.43% 46.14
2028 89.29 Est @ -3.37% 40.87
2029 87.57 Est @ -1.93% 36.75
Present value of next 10 years cash flows $560.00
TSX:IPCO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $87.57 × (1 + 1.44%) ÷ (9.07% – 1.44%)
$1,164.18
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,164.18 ÷ (1 + 9.07%)10
$488.61
TSX:IPCO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $560.00 + $488.61
$1,048.61
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,048.61 / 155.73
$6.73
TSX:IPCO Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:IPCO)
1.407
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $6.73 x 1.407
CA$9.48
Value per share (CAD) From above. CA$9.48
Current discount Discount to share price of CA$1.75
= -1 x (CA$1.75 - CA$9.48) / CA$9.48
81.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price International Petroleum is available for.
Intrinsic value
>50%
Share price is CA$1.75 vs Future cash flow value of CA$9.48
Current Discount Checks
For International Petroleum to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • International Petroleum's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • International Petroleum's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for International Petroleum's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are International Petroleum's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:IPCO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $0.63
TSX:IPCO Share Price ** TSX (2020-03-27) in CAD CA$1.75
TSX:IPCO Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.711 $1.24
Canada Oil and Gas Industry PE Ratio Median Figure of 55 Publicly-Listed Oil and Gas Companies 6.03x
Canada Market PE Ratio Median Figure of 497 Publicly-Listed Companies 10.58x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of International Petroleum.

TSX:IPCO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:IPCO Share Price ÷ EPS (both in USD)

= 1.24 ÷ 0.63

1.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • International Petroleum is good value based on earnings compared to the CA Oil and Gas industry average.
  • International Petroleum is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does International Petroleum's expected growth come at a high price?
Raw Data
TSX:IPCO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 1.97x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
4.2%per year
Canada Oil and Gas Industry PEG Ratio Median Figure of 29 Publicly-Listed Oil and Gas Companies -0.04x
Canada Market PEG Ratio Median Figure of 234 Publicly-Listed Companies 0.69x

*Line of best fit is calculated by linear regression .

TSX:IPCO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 1.97x ÷ 4.2%

0.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • International Petroleum is good value based on expected growth next year.
Price based on value of assets
What value do investors place on International Petroleum's assets?
Raw Data
TSX:IPCO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $4.95
TSX:IPCO Share Price * TSX (2020-03-27) in CAD CA$1.75
TSX:IPCO Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.711 $1.24
Canada Oil and Gas Industry PB Ratio Median Figure of 198 Publicly-Listed Oil and Gas Companies 0.39x
Canada Market PB Ratio Median Figure of 2,351 Publicly-Listed Companies 1x
TSX:IPCO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:IPCO Share Price ÷ Book Value per Share (both in USD)

= 1.24 ÷ 4.95

0.25x

* Primary Listing of International Petroleum.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • International Petroleum is good value based on assets compared to the CA Oil and Gas industry average.
X
Value checks
We assess International Petroleum's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. International Petroleum has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

IPCO Future Performance

 How is International Petroleum expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is International Petroleum expected to grow at an attractive rate?
  • International Petroleum's earnings growth is expected to exceed the low risk savings rate of 1.4%.
Growth vs Market Checks
  • International Petroleum's earnings growth is positive but not above the Canada market average.
  • International Petroleum's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:IPCO Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:IPCO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 4.2%
TSX:IPCO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 2.4%
Canada Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average -3.7%
Canada Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 1.1%
Canada Market Earnings Growth Rate Market Cap Weighted Average 7.8%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:IPCO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:IPCO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 495 223 62 1
2023-12-31 502 245 62 1
2022-12-31 488 233 39 2
2021-12-31 428 172 -19 3
2020-12-31 329 154 -62 3
2020-03-28
TSX:IPCO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 546 271 104
2019-09-30 513 273 95
2019-06-30 488 243 115
2019-03-31 479 236 110
2018-12-31 446 292 104
2018-09-30 389 248 83
2018-06-30 332 224 59
2018-03-31 261 195 45
2017-12-31 199 144 23
2017-09-30 205 139 -62
2017-06-30 205 134 -60
2017-03-31 212 126 -40

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • International Petroleum's earnings are expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).
  • International Petroleum's revenue is expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:IPCO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from International Petroleum Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:IPCO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 0.40 0.40 0.40 1.00
2023-12-31 0.40 0.40 0.40 1.00
2022-12-31 0.25 0.25 0.25 1.00
2021-12-31 -0.29 -0.11 -0.62 3.00
2020-12-31 -0.47 -0.38 -0.61 3.00
2020-03-28
TSX:IPCO Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 0.63
2019-09-30 0.64
2019-06-30 0.89
2019-03-31 1.00
2018-12-31 1.13
2018-09-30 0.95
2018-06-30 0.67
2018-03-31 0.48
2017-12-31 0.23
2017-09-30 -0.60
2017-06-30 -0.55
2017-03-31 -0.35

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • International Petroleum is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess International Petroleum's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
International Petroleum has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

IPCO Past Performance

  How has International Petroleum performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare International Petroleum's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • International Petroleum has delivered over 20% year on year earnings growth in the past 5 years.
  • International Petroleum's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • International Petroleum's 1-year earnings growth is negative, it can't be compared to the CA Oil and Gas industry average.
Earnings and Revenue History
International Petroleum's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from International Petroleum Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:IPCO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 546.01 103.56 25.86
2019-09-30 512.85 94.55 25.49
2019-06-30 487.80 114.70 12.29
2019-03-31 478.67 110.45 12.43
2018-12-31 446.27 103.62 13.09
2018-09-30 389.38 83.25 15.66
2018-06-30 332.06 58.95 16.57
2018-03-31 261.01 44.57 16.01
2017-12-31 199.00 22.72 13.09
2017-09-30 204.78 -62.36 10.16
2017-06-30 205.26 -60.01 6.40
2017-03-31 211.50 -40.18 -1.79
2016-12-31 206.58 -95.73 16.07
2015-12-31 172.09 -181.57 97.52
2014-12-31 153.49 66.29 89.68

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • International Petroleum has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • International Petroleum used its assets more efficiently than the CA Oil and Gas industry average last year based on Return on Assets.
  • International Petroleum has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess International Petroleum's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
International Petroleum has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

IPCO Health

 How is International Petroleum's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up International Petroleum's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • International Petroleum is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • International Petroleum's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of International Petroleum's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from International Petroleum Company Filings, last reported 2 months ago.

TSX:IPCO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 790.81 244.73 15.57
2019-09-30 764.60 218.99 13.81
2019-06-30 767.14 245.48 9.23
2019-03-31 730.49 262.81 8.97
2018-12-31 695.79 283.73 10.63
2018-09-30 376.45 216.89 8.14
2018-06-30 354.15 258.69 8.96
2018-03-31 334.39 331.25 28.17
2017-12-31 306.94 59.27 33.68
2017-09-30 293.86 64.02 17.76
2017-06-30 287.30 49.00 14.65
2017-03-31 389.97 0.00 20.08
2016-12-31 405.10 0.00 13.41
2015-12-31 592.61 0.00 24.37
2014-12-31
  • International Petroleum's level of debt (30.9%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if International Petroleum's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (110.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.7x coverage).
X
Financial health checks
We assess International Petroleum's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. International Petroleum has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

IPCO Dividends

 What is International Petroleum's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from International Petroleum dividends. Estimated to be 0% next year.
If you bought CA$2,000 of International Petroleum shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate International Petroleum's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate International Petroleum's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:IPCO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Canada Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 8.6%
Canada Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 4.9%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.3%
Canada Bottom 25% Dividend Yield 25th Percentile 2.7%
Canada Top 25% Dividend Yield 75th Percentile 8.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:IPCO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 0.00 1.00
2021-12-31 0.00 1.00
2020-12-31 0.00 2.00
2020-03-28

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as International Petroleum has not reported any payouts.
  • Unable to verify if International Petroleum's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of International Petroleum's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as International Petroleum has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of International Petroleum's dividends in 3 years as they are not expected to pay a notable one for Canada.
X
Income/ dividend checks
We assess International Petroleum's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can International Petroleum afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. International Petroleum has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

IPCO Management

 What is the CEO of International Petroleum's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mike Nicholson
COMPENSATION $2,477,428
AGE 48
TENURE AS CEO 2.9 years
CEO Bio

Mr. Mike Nicholson serves as Chief Executive Officer and President since April 2017 and Director of International Petroleum Corporation since February 20, 2017. Mr. Nicholson served as the Chief Financial Officer of Lundin Petroleum AB (publ) from December 31, 2013 to 2017. Mr. Nicholson worked as a Consulting Economist for AUPEC ltd in Aberdeen since 1994 until 1996. He served in various economics, financial and banking roles with Veba Oel, Canadian Imperial Bank of Commerce and Marathon Oil in London from 1996 to 2004. He served as General Manager of South East Asia at Lundin Petroleum AB (publ) since 2008. He served as General Manager of Malaysia at Lundin Petroleum AB since 2008 and Managing Director of the South East Asia business since 2012. Mr. Nicholson graduated from Aberdeen University where he obtained a degree in Economics and Management Studies.

CEO Compensation
  • Mike's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Mike's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the International Petroleum management team in years:

2.9
Average Tenure
48
Average Age
  • The tenure for the International Petroleum management team is about average.
Management Team

Mike Nicholson

TITLE
President
COMPENSATION
$2M
AGE
48
TENURE
2.9 yrs

Christophe Nerguararian

TITLE
Chief Financial Officer
COMPENSATION
$1M
AGE
44
TENURE
2.9 yrs

Daniel Fitzgerald

TITLE
Chief Operating Officer
COMPENSATION
$891K
TENURE
2.9 yrs

Jeffrey Fountain

TITLE
General Counsel & Corporate Secretary
COMPENSATION
$1M
AGE
50
TENURE
2.9 yrs

Rebecca Gordon

TITLE
Vice President of Corporate Planning & Investor Relations
TENURE
2.9 yrs

Chris Hogue

TITLE
Senior Vice President of Canada
AGE
45
TENURE
1.3 yrs

Ed Sobel

TITLE
Vice President of Exploration
AGE
55
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the International Petroleum board of directors in years:

3
Average Tenure
59
Average Age
  • The tenure for the International Petroleum board of directors is about average.
Board of Directors

Lukas Lundin

TITLE
Chairman of the Board
COMPENSATION
$150K
AGE
61
TENURE
3 yrs

Mike Nicholson

TITLE
President
COMPENSATION
$2M
AGE
48
TENURE
3.1 yrs

Charles Ashley Heppenstall

TITLE
Lead Director
COMPENSATION
$140K
AGE
57

Don Charter

TITLE
Independent Director
COMPENSATION
$150K
AGE
63
TENURE
3 yrs

Chris Bruijnzeels

TITLE
Independent Director
COMPENSATION
$102K
AGE
60
TENURE
3 yrs

Torstein Sanness

TITLE
Independent Director
COMPENSATION
$116K
AGE
72
TENURE
3 yrs

Daniella Dimitrov

TITLE
Independent Director
COMPENSATION
$84K
AGE
49
TENURE
1.8 yrs

John Festival

TITLE
Director
AGE
58
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • International Petroleum individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
04. Jan 20 Sell John Festival Individual 02. Jan 20 03. Jan 20 -169,435 CA$5.95 CA$-992,066
20. Dec 19 Sell John Festival Individual 20. Dec 19 20. Dec 19 -69,703 CA$5.86 CA$-408,460
28. Jun 19 Sell John Festival Individual 26. Jun 19 26. Jun 19 -50,816 CA$6.06 CA$-307,945
25. Jun 19 Buy Chris Bruijnzeels Individual 20. Jun 19 20. Jun 19 50,000 CA$5.90 CA$294,993
X
Management checks
We assess International Petroleum's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. International Petroleum has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

IPCO News

Simply Wall St News

We Think International Petroleum (TSE:IPCO) Can Stay On Top Of Its Debt

While International Petroleum's low debt to EBITDA ratio of 0.85 suggests only modest use of debt, the fact that EBIT only covered the interest expense by 6.4 last year does give us pause. … Over the last two years, International Petroleum actually produced more free cash flow than EBIT. … Our View The good news is that International Petroleum's demonstrated ability to convert EBIT to free cash flow delights us like a fluffy puppy does a toddler.

Simply Wall St -

Insider Buying: The International Petroleum Corporation (TSE:IPCO) Chairman of the Board Just Bought US$700k Worth Of Shares

Those following along with International Petroleum Corporation (TSE:IPCO) will no doubt be intrigued by the recent purchase of shares by Lukas Lundin, Chairman of the Board of the company, who spent a stonking US$700k on stock at an average price of US$4.67. … Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. … Insiders own 6.4% of International Petroleum shares, worth about CA$46m.

Simply Wall St -

Why You Should Like International Petroleum Corporation’s (TSE:IPCO) ROCE

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for International Petroleum: 0.11 = US$136m ÷ (US$1.3b - US$97m) (Based on the trailing twelve months to March 2019.) Therefore, International Petroleum has an ROCE of 11%. … How International Petroleum's Current Liabilities Impact Its ROCE Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Imagine Owning International Petroleum (TSE:IPCO) And Wondering If The 31% Share Price Slide Is Justified

That downside risk was realized by International Petroleum Corporation (TSE:IPCO) shareholders over the last year, as the share price declined 31%. … Even though the International Petroleum share price is down over the year, its EPS actually improved. … A Different Perspective Given that the market gained 1.1% in the last year, International Petroleum shareholders might be miffed that they lost 31%.

Simply Wall St -

How Do Analysts See International Petroleum Corporation (TSE:IPCO) Performing In The Next 12 Months?

After International Petroleum Corporation's (TSE:IPCO) earnings announcement in March 2019, analyst consensus outlook appear cautiously subdued, as a 15% rise in profits is expected in the upcoming year, compared with the higher past 5-year average growth rate of 52%. … To understand the overall trajectory of IPCO's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope. … TSX:IPCO Past and Future Earnings, June 8th 2019 By 2022, IPCO's earnings should reach US$118m, from current levels of US$104m, resulting in an annual growth rate of 1.4%.

Simply Wall St -

An Examination Of International Petroleum Corporation (TSE:IPCO)

Not only did IPCO outperformed its past performance, its growth also exceeded the Oil and Gas industry expansion, which generated a 15% earnings growth. … TSX:IPCO Income Statement, May 24th 2019 IPCO is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. … Compared to the rest of the oil and gas industry, IPCO is also trading below its peers, relative to earnings generated.

Simply Wall St -

Boasting A 15% Return On Equity, Is International Petroleum Corporation (TSE:IPCO) A Top Quality Stock?

Over the last twelve months International Petroleum has recorded a ROE of 15%. … View our latest analysis for International Petroleum? … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

A Closer Look At International Petroleum Corporation's (TSE:IPCO) Impressive ROE

This article is for those who would like to learn about Return On Equity (ROE). … That means that for every CA$1 worth of shareholders' equity, it generated CA$0.22 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Why Did International Petroleum Corporation's' (TSE:IPCO) Insiders Buy Up More Shares?

International Petroleum's insiders have invested. … Generally, insiders buying more shares in their own firm sends a bullish signal … A research published in The MIT Press (1998) concluded that stocks following insider buying outperformed the market by 4.5%

Simply Wall St -

Who Are The Major Shareholders Of International Petroleum Corporation (TSE:IPCO)?

In this article, I will take a quick look at International Petroleum Corporation’s (TSE:IPCO) recent ownership structure – an unconventional investing subject, but an important one. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … The implications of these institutions’ actions can either benefit or hinder individual investors, so it is important to understand the ownership composition of your stock investment.

Simply Wall St -

IPCO Company Info

Description

International Petroleum Corporation explores for, develops, and produces oil and gas. The company holds interests in a portfolio of oil and gas assets located in Alberta and Saskatchewan, Canada; Bertam, Malaysia; and Paris and Aquitaine Basins, France. As at December 31, 2019, it had a proved and probable reserves of 300 million barrels of oil equivalents. International Petroleum Corporation was incorporated in 2017 and is headquartered in Vancouver, Canada.

Details
Name: International Petroleum Corporation
IPCO
Exchange: TSX
Founded: 2017
CA$272,523,350
155,727,629
Website: http://www.international-petroleum.com
Address: International Petroleum Corporation
885 West Georgia Street,
Suite 2000,
Vancouver,
British Columbia, V6C 3E8,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX IPCO Common Shares The Toronto Stock Exchange CA CAD 24. Apr 2017
OTCPK IPCF.F Common Shares Pink Sheets LLC US USD 24. Apr 2017
DB IPT Common Shares Deutsche Boerse AG DE EUR 24. Apr 2017
LSE 0V1L Common Shares London Stock Exchange GB SEK 24. Apr 2017
OM IPCO Common Shares OMX Nordic Exchange Stockholm SE SEK 24. Apr 2017
BMV IPCO N Common Shares Bolsa Mexicana de Valores MX MXN 24. Apr 2017
BATS-CHIXE IPCOS Common Shares BATS 'Chi-X Europe' GB SEK 24. Apr 2017
Number of employees
Current staff
Staff numbers
271
International Petroleum employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/28 03:23
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/26
Last earnings filing: 2020/02/11
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.