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CARDINAL ENERGY LTD (CJ.CA) Stock Fundamental Analysis

TSX:CJ - Toronto Stock Exchange - CA14150G4007 - Common Stock - Currency: CAD

6.4  -0.02 (-0.31%)

Fundamental Rating

5

Overall CJ gets a fundamental rating of 5 out of 10. We evaluated CJ against 221 industry peers in the Oil, Gas & Consumable Fuels industry. CJ has an excellent profitability rating, but there are some minor concerns on its financial health. CJ is valued quite cheap, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year CJ was profitable.
CJ had a positive operating cash flow in the past year.
In multiple years CJ reported negative net income over the last 5 years.
CJ had a positive operating cash flow in each of the past 5 years.
CJ.CA Yearly Net Income VS EBIT VS OCF VS FCFCJ.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M

1.2 Ratios

CJ has a Return On Assets of 8.23%. This is amongst the best in the industry. CJ outperforms 86.96% of its industry peers.
CJ's Return On Equity of 11.21% is fine compared to the rest of the industry. CJ outperforms 78.26% of its industry peers.
CJ has a Return On Invested Capital of 10.00%. This is amongst the best in the industry. CJ outperforms 88.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CJ is above the industry average of 7.73%.
Industry RankSector Rank
ROA 8.23%
ROE 11.21%
ROIC 10%
ROA(3y)20.45%
ROA(5y)1.98%
ROE(3y)27.84%
ROE(5y)-3.71%
ROIC(3y)12.05%
ROIC(5y)N/A
CJ.CA Yearly ROA, ROE, ROICCJ.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40 -60 -80

1.3 Margins

The Profit Margin of CJ (20.69%) is better than 78.26% of its industry peers.
In the last couple of years the Profit Margin of CJ has grown nicely.
CJ has a better Operating Margin (29.72%) than 80.19% of its industry peers.
In the last couple of years the Operating Margin of CJ has grown nicely.
Industry RankSector Rank
OM 29.72%
PM (TTM) 20.69%
GM N/A
OM growth 3YN/A
OM growth 5Y21.48%
PM growth 3YN/A
PM growth 5Y2.57%
GM growth 3YN/A
GM growth 5YN/A
CJ.CA Yearly Profit, Operating, Gross MarginsCJ.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100 -150

4

2. Health

2.1 Basic Checks

CJ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CJ has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CJ has more shares outstanding
The debt/assets ratio for CJ is higher compared to a year ago.
CJ.CA Yearly Shares OutstandingCJ.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
CJ.CA Yearly Total Debt VS Total AssetsCJ.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

2.2 Solvency

An Altman-Z score of 2.35 indicates that CJ is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.35, CJ is in the better half of the industry, outperforming 71.01% of the companies in the same industry.
The Debt to FCF ratio of CJ is 0.88, which is an excellent value as it means it would take CJ, only 0.88 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.88, CJ belongs to the best of the industry, outperforming 92.75% of the companies in the same industry.
A Debt/Equity ratio of 0.08 indicates that CJ is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.08, CJ is in the better half of the industry, outperforming 70.05% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.08
Debt/FCF 0.88
Altman-Z 2.35
ROIC/WACC1.27
WACC7.87%
CJ.CA Yearly LT Debt VS Equity VS FCFCJ.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

2.3 Liquidity

CJ has a Current Ratio of 0.50. This is a bad value and indicates that CJ is not financially healthy enough and could expect problems in meeting its short term obligations.
CJ's Current ratio of 0.50 is on the low side compared to the rest of the industry. CJ is outperformed by 79.71% of its industry peers.
A Quick Ratio of 0.50 indicates that CJ may have some problems paying its short term obligations.
With a Quick ratio value of 0.50, CJ is not doing good in the industry: 78.74% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.5
Quick Ratio 0.5
CJ.CA Yearly Current Assets VS Current LiabilitesCJ.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M

3

3. Growth

3.1 Past

The earnings per share for CJ have decreased strongly by -43.22% in the last year.
Measured over the past 5 years, CJ shows a small growth in Earnings Per Share. The EPS has been growing by 3.91% on average per year.
Looking at the last year, CJ shows a small growth in Revenue. The Revenue has grown by 1.95% in the last year.
Measured over the past years, CJ shows a quite strong growth in Revenue. The Revenue has been growing by 8.57% on average per year.
EPS 1Y (TTM)-43.22%
EPS 3YN/A
EPS 5Y3.91%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)1.95%
Revenue growth 3Y34.49%
Revenue growth 5Y8.57%
Sales Q2Q%-13.8%

3.2 Future

The Earnings Per Share is expected to grow by 7.01% on average over the next years.
The Revenue is expected to decrease by -1.50% on average over the next years.
EPS Next Y12.27%
EPS Next 2Y-4.03%
EPS Next 3Y9.06%
EPS Next 5Y7.01%
Revenue Next Year-2.87%
Revenue Next 2Y-4.09%
Revenue Next 3Y0.23%
Revenue Next 5Y-1.5%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
CJ.CA Yearly Revenue VS EstimatesCJ.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 200M 400M 600M
CJ.CA Yearly EPS VS EstimatesCJ.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 -2 -4

7

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 9.55 indicates a reasonable valuation of CJ.
Compared to the rest of the industry, the Price/Earnings ratio of CJ indicates a somewhat cheap valuation: CJ is cheaper than 67.15% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 30.43. CJ is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.03, the valuation of CJ can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as CJ.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, CJ is valued rather cheaply.
Industry RankSector Rank
PE 9.55
Fwd PE 11.03
CJ.CA Price Earnings VS Forward Price EarningsCJ.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CJ is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CJ is valued a bit cheaper than 68.12% of the companies in the same industry.
Industry RankSector Rank
P/FCF 12.14
EV/EBITDA 4.34
CJ.CA Per share dataCJ.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4 5

4.3 Compensation for Growth

CJ's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CJ may justify a higher PE ratio.
PEG (NY)0.78
PEG (5Y)2.44
EPS Next 2Y-4.03%
EPS Next 3Y9.06%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 11.21%, CJ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.30, CJ pays a better dividend. On top of this CJ pays more dividend than 98.55% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, CJ pays a better dividend.
Industry RankSector Rank
Dividend Yield 11.21%

5.2 History

The dividend of CJ is nicely growing with an annual growth rate of 12.39%!
CJ has paid a dividend for at least 10 years, which is a reliable track record.
CJ has decreased its dividend recently.
Dividend Growth(5Y)12.39%
Div Incr Years1
Div Non Decr Years1
CJ.CA Yearly Dividends per shareCJ.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

112.95% of the earnings are spent on dividend by CJ. This is not a sustainable payout ratio.
CJ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP112.95%
EPS Next 2Y-4.03%
EPS Next 3Y9.06%
CJ.CA Yearly Income VS Free CF VS DividendCJ.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M
CJ.CA Dividend Payout.CJ.CA Dividend Payout, showing the Payout Ratio.CJ.CA Dividend Payout.PayoutRetained Earnings

CARDINAL ENERGY LTD

TSX:CJ (2/14/2025, 7:00:00 PM)

6.4

-0.02 (-0.31%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)03-12 2025-03-12/amc
Inst Owners5.05%
Inst Owner ChangeN/A
Ins Owners20.74%
Ins Owner ChangeN/A
Market Cap1.02B
Analysts76.92
Price Target7.61 (18.91%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 11.21%
Yearly Dividend0.74
Dividend Growth(5Y)12.39%
DP112.95%
Div Incr Years1
Div Non Decr Years1
Ex-Date02-28 2025-02-28 (0.06)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-19.14%
Min EPS beat(2)-30.44%
Max EPS beat(2)-7.83%
EPS beat(4)0
Avg EPS beat(4)-24.58%
Min EPS beat(4)-30.65%
Max EPS beat(4)-7.83%
EPS beat(8)1
Avg EPS beat(8)-4.45%
EPS beat(12)4
Avg EPS beat(12)3.17%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-15.58%
Min Revenue beat(2)-31%
Max Revenue beat(2)-0.17%
Revenue beat(4)0
Avg Revenue beat(4)-13.9%
Min Revenue beat(4)-31%
Max Revenue beat(4)-0.17%
Revenue beat(8)0
Avg Revenue beat(8)-14.72%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.36%
PT rev (3m)-1.97%
EPS NQ rev (1m)3.13%
EPS NQ rev (3m)-21.43%
EPS NY rev (1m)0.49%
EPS NY rev (3m)-7.62%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-1.29%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-3.94%
Valuation
Industry RankSector Rank
PE 9.55
Fwd PE 11.03
P/S 2.05
P/FCF 12.14
P/OCF 3.88
P/B 1.11
P/tB 1.11
EV/EBITDA 4.34
EPS(TTM)0.67
EY10.47%
EPS(NY)0.58
Fwd EY9.07%
FCF(TTM)0.53
FCFY8.24%
OCF(TTM)1.65
OCFY25.8%
SpS3.11
BVpS5.75
TBVpS5.75
PEG (NY)0.78
PEG (5Y)2.44
Profitability
Industry RankSector Rank
ROA 8.23%
ROE 11.21%
ROCE 13.1%
ROIC 10%
ROICexc 10%
ROICexgc 10%
OM 29.72%
PM (TTM) 20.69%
GM N/A
FCFM 16.92%
ROA(3y)20.45%
ROA(5y)1.98%
ROE(3y)27.84%
ROE(5y)-3.71%
ROIC(3y)12.05%
ROIC(5y)N/A
ROICexc(3y)12.05%
ROICexc(5y)N/A
ROICexgc(3y)12.05%
ROICexgc(5y)N/A
ROCE(3y)15.8%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y33.97%
ROICexc growth 3YN/A
ROICexc growth 5Y33.97%
OM growth 3YN/A
OM growth 5Y21.48%
PM growth 3YN/A
PM growth 5Y2.57%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 0.08
Debt/FCF 0.88
Debt/EBITDA 0.29
Cap/Depr 171.58%
Cap/Sales 36.09%
Interest Coverage 250
Cash Conversion 104.46%
Profit Quality 81.81%
Current Ratio 0.5
Quick Ratio 0.5
Altman-Z 2.35
F-Score4
WACC7.87%
ROIC/WACC1.27
Cap/Depr(3y)104.41%
Cap/Depr(5y)86.26%
Cap/Sales(3y)20.71%
Cap/Sales(5y)19.63%
Profit Quality(3y)63.48%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-43.22%
EPS 3YN/A
EPS 5Y3.91%
EPS Q2Q%-33.33%
EPS Next Y12.27%
EPS Next 2Y-4.03%
EPS Next 3Y9.06%
EPS Next 5Y7.01%
Revenue 1Y (TTM)1.95%
Revenue growth 3Y34.49%
Revenue growth 5Y8.57%
Sales Q2Q%-13.8%
Revenue Next Year-2.87%
Revenue Next 2Y-4.09%
Revenue Next 3Y0.23%
Revenue Next 5Y-1.5%
EBIT growth 1Y2.41%
EBIT growth 3YN/A
EBIT growth 5Y31.89%
EBIT Next Year80.46%
EBIT Next 3Y30.29%
EBIT Next 5Y6.83%
FCF growth 1Y-61.11%
FCF growth 3Y100.38%
FCF growth 5Y30.41%
OCF growth 1Y-17.71%
OCF growth 3Y74.28%
OCF growth 5Y20.99%