Baytex Energy Corp Stock Analysis:
STA Research Assigns Baytex Energy Corp. with an Underperform rating and a target price of $4 on the company’s stock.
Based on the Baytex Energy Corp stock forecasts from 9 analysts, the average analyst target price for Baytex Energy Corp is CAD 8.77 over the next 12 months. Baytex Energy Corp’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Baytex Energy Corp is Slightly Bearish, which is based on 4 positive signals and 5 negative signals. At the last closing, Baytex Energy Corp’s stock price was CAD 6.39. Baytex Energy Corp’s stock price has changed by -11.62% over the past week, -2.59% over the past month and +67.28% over the last year.
About Baytex Energy Corp (BTE:CA:TSX)
Baytex Energy Corp., an oil and gas company, acquires, develops, and produces oil and natural gas in the Western Canadian Sedimentary Basin and in the Texas, the United States. The company offers light oil and condensate, heavy oil, natural gas liquids, and natural gas. Its principal oil and natural gas properties comprise the Eagle Ford property in Texas, Viking and Lloydminster properties in Alberta and Saskatchewan, Peace River and Duvernay properties in Alberta. The company’s properties also include conventional oil and natural gas assets in Western Canada. As of December 31, 2021, it had proved developed producing reserves of 129 million barrels of oil equivalent (mmboe); proved reserves of 278 mmboe; and proved plus probable reserves of 451 mmboe. Baytex Energy Corp. was founded in 1993 and is headquartered in Calgary, Canada.
What we like:
High market capitalization
This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.
Superior capital utilization
The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.
Positive cash flow
The company had positive total cash flow in the most recent four quarters.
Positive free cash flow
The company had positive total free cash flow in the most recent four quarters.
What we don’t like:
Poor risk adjusted returns
This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.
The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.
Overpriced compared to book value
The stock is trading high compared to its peers median on a price to book value basis.
The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.
Low Revenue Growth
This stock has shown below median revenue growth in the previous 5 years compared to its sector.