#3 - Bonterra Energy (TSE:BNE)
Bonterra Energy (TSE:BNE) - Bonterra is a small-cap oil company that pays an attractive dividend yield that is currently around 2.3%. BNEFF has seen its stock price cut by almost 75% over the past 12 months. However, for Bonterra that has brought its market cap down to approximately $125 million. That makes the stock attractive because it has the potential to multiply many times over. On the other hand, the company has a significant level of net debt that is currently worth approximately 177% of the company’s market cap. This would seem to justify the company’s PE ratio which, at 8.9 is below the Canadian market average of 14.1. The key for Bonterra 0will be to prove that they can continue to grow earnings. Over the past year, BNEFF’s earnings growth has exceeded the CA Oil and Gas Industry average (70.9% vs. 62.2%). It has also shown a nice reversal from its five-year average which was -0.25%. If they can continue to post solid earnings, then the attractive PE should spur stock price appreciation to compliment the dividend.
About Bonterra Energy
Bonterra Energy Corp., a conventional oil and gas company, engages in the development and production of oil and natural gas in Canada. Its principal properties include Pembina Cardium, a conventional oil field, at the Pembina and Willesden green fields located in central Alberta; and holds 100% interest in the Montney properties that consist of approximately 28,880 acres located in the north of Grand Prairie, Alberta.
Read More - Current Price
- C$5.51
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 2 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- C$8.92 (61.8% Upside)
