Latest news with #WhitecapResources
Yahoo
3 days ago
- Business
- Yahoo
Deal Alert: This Canadian Dividend Knight, Down 14%, Offers a Rock-Solid Yield
Written by Amy Legate-Wolfe at The Motley Fool Canada Markets have been shaky lately, and that's made high-quality dividend stocks stand out even more. One that fits the bill is Whitecap Resources (TSX:WCP). It recently dropped about 14%, but it still pays a dependable monthly dividend that looks solid in any market. Whitecap operates in light oil and natural gas production across Western Canada. It isn't a start-up; it has built a reputation for stability and income. In May 2025, it paid $0.0608 per share, as it has every month since early 2024. That represents about $0.73 annually, which works out to a yield around 8.3% based on its current share price. A high yield is tempting, but it only works if the dividend stock can support it. Thankfully, Whitecap's payout ratio is healthy, about 48% of earnings, so the dividend is well covered by profit. That gives it room to pay investors monthly without stretching its finances thin. In fact, a $10,000 investment would bring in around $839.50 annually, or about $70 a month! COMPANY RECENT PRICE NUMBER OF SHARES DIVIDEND TOTAL PAYOUT FREQUENCY TOTAL INVESTMENT $8.69 1,150 $0.73 $839.50 Monthly $9,993.50 Recent earnings reinforce that view. In its first quarter of 2025, Whitecap pumped 179,051 barrels of oil equivalent per day, 6% more than a year earlier. Its funds flow for the quarter reached $446 million, or $0.75 per share, a 17% increase over Q1 2024. That translated to $48 million in free cash flow, after capital spending, showing real cash left over to finance that monthly payout. Net income is back on track, too. Q1 net income hit $162.6 million, compared to $59 million a year ago, a big jump . Earnings per share (EPS) came in at $0.28, up from $0.10 in Q1 2024. So not only is cash flowing, but profits are rising nicely as well. What's happening behind these numbers? Whitecap has been drilling aggressively. It ran 14 rigs in the quarter and drilled 86 wells, spanning both unconventional areas like Montney and Duvernay and more conventional zones. That drilling resulted in production growth, which boosted funds flow and earnings. Whitecap also merged with Veren, creating a larger producer positioned to generate even more cash per share. The bigger picture here is that Whitecap's dividend is reliable. It has steadily increased payouts over the past few years, from $0.048 per share in early 2021 to the current $0.0608. That gradual increase shows the dividend stock is focused on rewarding shareholders while keeping its payout ratio in check. Oil and gas stocks carry risk, of course. Prices can swing, and that impacts earnings. Operating costs also matter. But Whitecap has been disciplined. Its net debt is under $1 billion, giving it a debt-to-funds-flow ratio of just 0.6 times. That's strong for a producer. And its cost per barrel is down compared to last year; operating netbacks were $34.21 per boe, up from $31.21. That shows it remains cost-effective. For income-focused investors, especially those who appreciate monthly payments, Whitecap ticks a lot of boxes. An 8% yield, coverage well within safe limits, consistent growth, and a more defensive balance sheet than many oil plays make it a dividend stock to consider when markets feel unstable. With its share price down 14%, the yield has gone up, and that can be a sweet spot for investors who buy quality income stocks. If oil prices hold, production stays strong, and spending remains disciplined, it could deliver strong returns. Even if oil dips, the monthly income cushions the blow. The post Deal Alert: This Canadian Dividend Knight, Down 14%, Offers a Rock-Solid Yield appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Whitecap Resources. The Motley Fool has a disclosure policy. 2025
Yahoo
26-05-2025
- Business
- Yahoo
Whitecap Resources Inc. (TSE:WCP) Passed Our Checks, And It's About To Pay A CA$0.0608 Dividend
Whitecap Resources Inc. (TSE:WCP) stock is about to trade ex-dividend in 3 days. Typically, the ex-dividend date is two business days before the record date, which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Thus, you can purchase Whitecap Resources' shares before the 30th of May in order to receive the dividend, which the company will pay on the 16th of June. The company's upcoming dividend is CA$0.0608 a share, following on from the last 12 months, when the company distributed a total of CA$0.73 per share to shareholders. Based on the last year's worth of payments, Whitecap Resources has a trailing yield of 8.4% on the current stock price of CA$8.73. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. As a result, readers should always check whether Whitecap Resources has been able to grow its dividends, or if the dividend might be cut. We've discovered 3 warning signs about Whitecap Resources. View them for free. Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Fortunately Whitecap Resources's payout ratio is modest, at just 47% of profit. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. It paid out more than half (67%) of its free cash flow in the past year, which is within an average range for most companies. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. View our latest analysis for Whitecap Resources Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. It's encouraging to see Whitecap Resources has grown its earnings rapidly, up 43% a year for the past five years. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Whitecap Resources's dividend payments are effectively flat on where they were 10 years ago. Has Whitecap Resources got what it takes to maintain its dividend payments? From a dividend perspective, we're encouraged to see that earnings per share have been growing, the company is paying out less than half of its earnings, and a bit over half its free cash flow. There's a lot to like about Whitecap Resources, and we would prioritise taking a closer look at it. While it's tempting to invest in Whitecap Resources for the dividends alone, you should always be mindful of the risks involved. For instance, we've identified 3 warning signs for Whitecap Resources (1 is a bit concerning) you should be aware of. If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
26-05-2025
- Business
- Yahoo
TSX Value Stocks Trading Below Estimated Intrinsic Worth In May 2025
As Canadian investors navigate a landscape marked by potential changes in U.S. tax policy and rising bond yields, the focus on value investing becomes increasingly pertinent. In this environment, identifying stocks trading below their intrinsic worth can offer opportunities for those seeking to optimize their portfolios amidst evolving economic conditions. Name Current Price Fair Value (Est) Discount (Est) Whitecap Resources (TSX:WCP) CA$8.73 CA$14.06 37.9% Docebo (TSX:DCBO) CA$36.04 CA$58.01 37.9% Groupe Dynamite (TSX:GRGD) CA$15.20 CA$27.75 45.2% Aris Mining (TSX:ARIS) CA$8.74 CA$13.08 33.2% VersaBank (TSX:VBNK) CA$16.00 CA$29.98 46.6% Lithium Royalty (TSX:LIRC) CA$5.50 CA$8.45 34.9% TerraVest Industries (TSX:TVK) CA$161.99 CA$297.31 45.5% Timbercreek Financial (TSX:TF) CA$7.28 CA$10.82 32.7% Journey Energy (TSX:JOY) CA$1.59 CA$2.84 44% Laurentian Bank of Canada (TSX:LB) CA$28.17 CA$41.40 32% Click here to see the full list of 21 stocks from our Undervalued TSX Stocks Based On Cash Flows screener. Let's dive into some prime choices out of the screener. Overview: NanoXplore Inc. is a graphene company that manufactures and supplies graphene powder for industrial markets in Australia, with a market cap of CA$394.11 million. Operations: The company's revenue is derived from two main segments: Battery Cells and Materials, contributing CA$0.57 million, and Advanced Materials, Plastics and Composite Products, generating CA$134.79 million. Estimated Discount To Fair Value: 10.5% NanoXplore is trading at CA$2.31, below its estimated fair value of CA$2.58, suggesting it may be undervalued based on cash flows. Despite a decline in recent quarterly sales to CA$29.24 million from CA$33.62 million last year, the company has improved its net loss position and forecasts revenue growth of 21.4% annually, outpacing the Canadian market average of 3.4%. A share buyback program further signals management's confidence in future prospects. The analysis detailed in our NanoXplore growth report hints at robust future financial performance. Delve into the full analysis health report here for a deeper understanding of NanoXplore. Overview: Timbercreek Financial Corp. offers shorter-duration structured financing solutions to commercial real estate investors in Canada, with a market cap of CA$602.44 million. Operations: The company's revenue segment primarily consists of financial services through mortgage solutions, generating CA$72.43 million. Estimated Discount To Fair Value: 32.7% Timbercreek Financial, trading at CA$7.28, is undervalued with a fair value estimate of CA$10.82. Earnings are projected to grow 12.7% annually, surpassing the Canadian market's 11.6%. However, recent quarterly sales declined to CA$3.16 million from CA$4.35 million last year, though net income slightly rose to CA$14.77 million from CA$14.37 million a year ago, highlighting potential cash flow concerns despite future growth prospects and consistent dividend declarations of CAD 0.0575 per share monthly. The growth report we've compiled suggests that Timbercreek Financial's future prospects could be on the up. Navigate through the intricacies of Timbercreek Financial with our comprehensive financial health report here. Overview: Vitalhub Corp. offers technology and software solutions for health and human service providers across various regions including Canada, the United States, the United Kingdom, Australia, and Western Asia, with a market cap of CA$566.78 million. Operations: The company generates revenue primarily from its Healthcare Software segment, totaling CA$75.01 million. Estimated Discount To Fair Value: 26.5% Vitalhub, trading at CA$10.16, is undervalued with a fair value estimate of CA$13.83. Earnings are expected to grow 55.4% annually, outpacing the Canadian market's growth rate of 11.6%. Despite lower profit margins this year (3.8% versus last year's 10.3%), revenue increased to CA$21.67 million from CA$15.26 million in Q1 2025 compared to the previous year, suggesting potential for cash flow improvement amid significant earnings growth projections. Our expertly prepared growth report on Vitalhub implies its future financial outlook may be stronger than recent results. Click here to discover the nuances of Vitalhub with our detailed financial health report. Embark on your investment journey to our 21 Undervalued TSX Stocks Based On Cash Flows selection here. Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks. Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TSX:GRA TSX:TF and TSX:VHI. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
20-05-2025
- Business
- Yahoo
Whitecap Resources (TSE:WCP) Has Affirmed Its Dividend Of CA$0.0608
The board of Whitecap Resources Inc. (TSE:WCP) has announced that it will pay a dividend on the 16th of June, with investors receiving CA$0.0608 per share. This means the annual payment is 8.5% of the current stock price, which is above the average for the industry. We've discovered 3 warning signs about Whitecap Resources. View them for free. If the payments aren't sustainable, a high yield for a few years won't matter that much. Based on the last dividend, Whitecap Resources is earning enough to cover the payment, but then it makes up 140% of cash flows. The company might be more focused on returning cash to shareholders, but paying out this much of its cash flow could expose the dividend to being cut in the future. Looking forward, earnings per share is forecast to fall by 6.6% over the next year. If the dividend continues along the path it has been on recently, the payout ratio in 12 months could be 103%, which is definitely a bit high to be sustainable going forward. See our latest analysis for Whitecap Resources The company has an extended history of paying stable dividends. The dividend has gone from an annual total of CA$0.75 in 2015 to the most recent total annual payment of CA$0.73. Payments have been decreasing at a very slow pace in this time period. Generally, we don't like to see a dividend that has been declining over time as this can degrade shareholders' returns and indicate that the company may be running into problems. Investors could be attracted to the stock based on the quality of its payment history. Whitecap Resources has seen EPS rising for the last five years, at 43% per annum. The company's earnings per share has grown rapidly in recent years, and it has a good balance between reinvesting and paying dividends to shareholders, so we think that Whitecap Resources could prove to be a strong dividend payer. We should note that Whitecap Resources has issued stock equal to 106% of shares outstanding. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective. Overall, it's nice to see a consistent dividend payment, but we think that longer term, the current level of payment might be unsustainable. While the low payout ratio is a redeeming feature, this is offset by the minimal cash to cover the payments. We don't think Whitecap Resources is a great stock to add to your portfolio if income is your focus. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. To that end, Whitecap Resources has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
18-05-2025
- Business
- Yahoo
3 TSX Stocks Estimated To Be Trading 27.6% To 48% Below Intrinsic Value
As trade tensions ease and central banks maintain cautious stances on interest rates, the Canadian market is navigating a period of economic uncertainty with mixed signals from key sectors. In this environment, identifying undervalued stocks can be an effective strategy for investors seeking opportunities that may benefit from improved trade relations and stable monetary policies. Name Current Price Fair Value (Est) Discount (Est) Whitecap Resources (TSX:WCP) CA$8.52 CA$14.65 41.9% Docebo (TSX:DCBO) CA$36.92 CA$58.91 37.3% Badger Infrastructure Solutions (TSX:BDGI) CA$45.46 CA$77.01 41% Aris Mining (TSX:ARIS) CA$7.91 CA$13.10 39.6% Groupe Dynamite (TSX:GRGD) CA$14.57 CA$27.98 47.9% VersaBank (TSX:VBNK) CA$15.47 CA$30.59 49.4% TerraVest Industries (TSX:TVK) CA$165.27 CA$291.41 43.3% Laurentian Bank of Canada (TSX:LB) CA$27.63 CA$43.76 36.9% Journey Energy (TSX:JOY) CA$1.55 CA$3.04 49% Aya Gold & Silver (TSX:AYA) CA$10.59 CA$20.35 48% Click here to see the full list of 24 stocks from our Undervalued TSX Stocks Based On Cash Flows screener. We're going to check out a few of the best picks from our screener tool. Overview: Aya Gold & Silver Inc. is involved in the exploration, evaluation, and development of precious metals projects in Morocco and has a market cap of CA$1.36 billion. Operations: The company's revenue is primarily derived from the production at the Zgounder Silver Mine in Morocco, amounting to $67.87 million. Estimated Discount To Fair Value: 48% Aya Gold & Silver appears undervalued, trading at CA$10.59, significantly below its estimated fair value of CA$20.35. Recent financial results show robust growth, with Q1 2025 sales reaching US$33.83 million compared to US$5.08 million a year earlier and a net income turnaround to US$6.93 million from a loss of US$2.54 million the previous year. Additionally, Aya secured a US$25 million credit facility for its Boumadine project, enhancing financial flexibility and supporting future growth initiatives in Morocco. Our earnings growth report unveils the potential for significant increases in Aya Gold & Silver's future results. Click here to discover the nuances of Aya Gold & Silver with our detailed financial health report. Overview: Teck Resources Limited is involved in the research, exploration, development, processing, smelting, refining, and reclamation of mineral properties across Asia, the Americas, and Europe with a market cap of CA$25.83 billion. Operations: Teck Resources generates revenue primarily from its zinc segment, amounting to CA$3.76 billion, and copper segment, totaling CA$5.97 billion. Estimated Discount To Fair Value: 27.6% Teck Resources is trading at CA$50.97, significantly below its estimated fair value of CA$70.42, suggesting undervaluation based on cash flows. The company's earnings are forecast to grow by 31.81% annually, with revenue expected to outpace the Canadian market at 4.7% per year. Recent Q1 2025 results showed sales of CA$2.29 billion and net income of CA$370 million, reflecting solid financial performance despite a low forecasted return on equity of 4.1%. Our expertly prepared growth report on Teck Resources implies its future financial outlook may be stronger than recent results. Unlock comprehensive insights into our analysis of Teck Resources stock in this financial health report. Overview: Whitecap Resources Inc. is involved in the acquisition, development, and production of petroleum and natural gas properties in Western Canada, with a market cap of CA$10.82 billion. Operations: The company's revenue primarily comes from its oil and gas exploration and production segment, generating CA$3.41 billion. Estimated Discount To Fair Value: 41.9% Whitecap Resources, trading at CA$8.52, is significantly undervalued with an estimated fair value of CA$14.65, suggesting potential based on cash flows. Earnings are forecast to grow 19% annually, outpacing the Canadian market's 12%. Despite high dividend yields not fully covered by free cash flows and recent shareholder dilution, the company announced a substantial share buyback program and strategic merger with Veren Inc., enhancing its production capabilities and shareholder value prospects. The analysis detailed in our Whitecap Resources growth report hints at robust future financial performance. Click here and access our complete balance sheet health report to understand the dynamics of Whitecap Resources. Click through to start exploring the rest of the 21 Undervalued TSX Stocks Based On Cash Flows now. Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments. Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TSX:AYA TSX:TECK.B and TSX:WCP. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
