Yangarra Resources Ltd. (YGR:CA:TSX) Analysts rate with a Strong Buy, $3.29 target

STA Research
by: STA Research
Yangarra Resources Ltd. stock

Based on the Yangarra Resources Ltd. stock forecasts from 3 analysts, the average analyst target price for Yangarra Resources Ltd is CAD 3.29 over the next 12 months. Yangarra Resources Ltd.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Yangarra Resources Ltd is Slightly Bearish, which is based on 5 positive signals and 7 negative signals. At the last closing, Yangarra Resources Ltd.’s stock price was CAD 2.92. Yangarra Resources Ltd.’s stock price has changed by +8.15% over the past week, +28.07% over the past month and +153.91% over the last year.

Recently, the National Bank of Canada raised the target to $2.50 from $1.50, and maintained the Speculative Buy rating on the company’s stock price.

Yangarra Resources Ltd., a junior oil and gas company, engages in the exploration, development, and production of oil and natural gas properties in Western Canada. As of February 1, 2022, it had proved plus probable reserves of 141.2 million barrels of oil equivalent. The company is headquartered in Calgary, Canada.

 

What to like:

Underpriced compared to book value

The stock is trading low compared to its peers on a price-to-book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced on a cash flow basis

The stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

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.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

 

What to not like:

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor risk-adjusted returns

This company is delivering below median risk-adjusted returns to its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Highly leveraged

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.

 

Leave a Reply

Your email address will not be published.