Traditionally, investors use price-to-earnings (P/E) to determine if a company’s stock price is over or undervalued by comparing it with peers or sector multiples. However, the ratio does not take into consideration of a key metric, growth. The relationship between the P/E ratio and earnings growth tells a more complete story than the P/E on its own.
Today, we have shortlisted 6 Canadian energy stocks with low PEG ratios (<1). Additionally, we note that these stocks are rated a ‘Buy’ by majority of the analysts covering these stocks, according to consensus estimates provided by Bloomberg. Moreover, during the past one month, these stocks have registered daily average trading volumes in excess of 100,000.
|
Company Name |
Ticker |
Exchange |
Market Cap |
Last Price |
Average Volume |
Price Change (1-Month) |
TTM P/E |
PEG Ratio* |
Buy Rating |
|
Enerplus Corp |
ERF |
TSX |
2,843.2 |
13.84 |
1,738,348 |
-9.4% |
38.4 |
0.25 |
76.5% |
|
Precision Drilling Corp |
PD |
TSX |
1,996.7 |
6.82 |
4,109,983 |
-21.6% |
9.1 |
0.33 |
90.5% |
|
Savanna Energy Services Corp |
SVY |
TSX |
374.4 |
4.17 |
502,146 |
-28.5% |
22.9 |
0.49 |
54.5% |
|
ShawCor Ltd |
SCL |
TSX |
2,770.4 |
42.96 |
302,300 |
-12.6% |
15.9 |
0.50 |
71.4% |
|
Secure Energy Services Inc |
SES |
TSX |
1,895.8 |
15.64 |
795,271 |
-23.3% |
34.0 |
0.50 |
92.9% |
|
Baytex Energy Corp |
BTE |
TSX |
3,289.2 |
19.69 |
3,133,319 |
-38.8% |
12.2 |
0.74 |
60.0% |
Source: Bloomberg
TTM: Trailing twelve months
*PEG Ratio: 2014 Estimated P/E to long term growth rate of earnings.
Company Description
Enerplus Corp (TSX: ERF)
Enerplus Corp. is an oil and gas exploration and production company that owns a large, diversified portfolio of income generating crude oil and natural gas properties. The company invests in mature crude oil and natural gas producing properties located primarily in western Canada with predictable production profiles.
Precision Drilling Corp (TSX: PD)
Precision Drilling Corporation is an integrated oilfield drilling and energy service company providing services to the oil and gas industry. The company provides oilfield rentals, well services, catering services, and drilling services through its several business units.
Savanna Energy Services Corp (TSX: SVY)
Savanna Energy Services Corp. provides oil and gas service to Canada and parts of the United States. The company provides well servicing, proprietary coiled tubing drilling, and cased-hole wireline logging and perforating through its wholly-owned subsidiaries.
ShawCor Ltd (TSX: SCL)
ShawCor Ltd. is an energy services company focusing on technology-based products and services. The company serves exploration and production, pipeline, petrochemical, and industrial markets around the world. ShawCor operates through its partial interest in Bredero-Shaw, and through its OMSCO, Guardian, Shaw Pipeline Services, Canusa-CPA, DSG-Canusa, and ShawFlex business units.
Secure Energy Services Inc (TSX: SES)
Secure Energy Services Inc., is an energy services company that focuses on providing specialized services to upstream oil and natural gas companies operating in the Western Canadian Sedimentary Basin. The company treats and sells crude oil and the handling of by-products associated with oil and natural gas development and production.
Baytex Energy Corp (TSX: BTE)
Baytex Energy Corporation explores for and produces oil and natural gas. The company operates in the Western Canadian Sedimentary Basin and in the United States.
