Birchcliff Energy Return On Equity vs. Price To Sales

BIREF Stock  USD 3.87  0.09  2.27%   
Based on the key profitability measurements obtained from Birchcliff Energy's financial statements, Birchcliff Energy may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Birchcliff Energy's ability to earn profits and add value for shareholders.
For Birchcliff Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Birchcliff Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Birchcliff Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Birchcliff Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Birchcliff Energy over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Birchcliff Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Birchcliff Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Birchcliff Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Birchcliff Energy Price To Sales vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Birchcliff Energy's current stock value. Our valuation model uses many indicators to compare Birchcliff Energy value to that of its competitors to determine the firm's financial worth.
Birchcliff Energy is rated below average in return on equity category among its peers. It is rated fourth in price to sales category among its peers fabricating about  4.13  of Price To Sales per Return On Equity. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Birchcliff Energy's earnings, one of the primary drivers of an investment's value.

Birchcliff Price To Sales vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Birchcliff Energy

Return On Equity

 = 

Net Income

Total Equity

 = 
0.33
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Birchcliff Energy

P/S

 = 

MV Per Share

Revenue Per Share

 = 
1.36 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Birchcliff Price To Sales Comparison

Birchcliff Energy is currently under evaluation in price to sales category among its peers.

Birchcliff Energy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Birchcliff Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Birchcliff Energy will eventually generate negative long term returns. The profitability progress is the general direction of Birchcliff Energy's change in net profit over the period of time. It can combine multiple indicators of Birchcliff Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Birchcliff Energy Ltd., an intermediate oil and natural gas company, acquires, explores for, develops, and produces natural gas, light oil, condensate, and natural gas liquids in Western Canada. Birchcliff Energy Ltd. was incorporated in 2004 and is headquartered in Calgary, Canada. BIRCHCLIFF ENERGY operates under Oil Gas EP classification in the United States and is traded on OTC Exchange. It employs 204 people.

Birchcliff Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Birchcliff Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Birchcliff Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Birchcliff Energy's important profitability drivers and their relationship over time.

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Other Information on Investing in Birchcliff Pink Sheet

To fully project Birchcliff Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Birchcliff Energy at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Birchcliff Energy's income statement, its balance sheet, and the statement of cash flows.
Potential Birchcliff Energy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Birchcliff Energy investors may work on each financial statement separately, they are all related. The changes in Birchcliff Energy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Birchcliff Energy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.