Wilton Resources Inc. operates as an oil and gas exploration and development company in Canada. It also focuses on acquiring oil and natural gas properties in various locations, including the Middle East and Africa. The company was formerly known as Hackamore Capital Corp. and changed its name to Wilton Resources Inc. in October 2008. Wilton Resources Inc. was incorporated in 2007 and is based in Calgary, Canada.

Canada

Wilton Resources Inc.

Energy

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

WIL.V reported revenue of CAD 0mn in the last 12 months, down 12% from FY23. The dynamics of cash flow, as measure by free cash flow (FCF), were rather similar. EPS grew 21% from FY23 to CAD -0.03.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Within the past six months, its performance has trailed this peer group's by 11ppts and its growth decelerated by 10ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is slightly unfavourable.

The company has reported very poor EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to -19478.3% in the last 12 months, a decline from -8526.5% in FY22. 

Historically, WIL.V has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -19736.2%, down from -8560.9% in FY22. 

In the last 12 months, the return on capital employed (RoCE) declined to -585.9%, below the peers. 

Wilton Resources Inc. reported a return on equity (RoE) of -630.2% in the last 12 months, down from 176.1% in FY22. 

Another important profitability metric, return on assets (RoA), amounted to -158.0% in the last 12 months, an increase from -198.3% in FY22. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -8.5 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

WIL.V has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is usually stable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, bleak profitability, negligible return on capital, poor working capital management, and inadequate interest coverage. We note low margin volatility and an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, WIL.V is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, WIL.V is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

From both historical and forecast perspectives, the stock is considerably overpriced compared to similar stocks. 

Wilton Resources Inc.

CA$ 0.51

1

Wilton Resources Inc.

CA$ 0.51

1

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Risk / Profitability

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CA$ 0.51

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