CANACOL ENERGY LTD (CNE.CA) Stock Fundamental Analysis
TSX:CNE - Toronto Stock Exchange - CA1348083025 - Common Stock - Currency: CAD
Taking everything into account, CNE scores 5 out of 10 in our fundamental rating. CNE was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. While CNE is still in line with the averages on profitability rating, there are concerns on its financial health. CNE is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
CNE had positive earnings in the past year.
In the past year CNE had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: CNE reported negative net income in multiple years.
CNE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.37%, CNE is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Return On Equity of CNE (-1.30%) is comparable to the rest of the industry.
CNE's Return On Invested Capital of 12.76% is amongst the best of the industry. CNE outperforms 94.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CNE is above the industry average of 7.26%.
The 3 year average ROIC (11.39%) for CNE is below the current ROIC(12.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.37% | ||
| ROE | -1.3% | ||
| ROIC | 12.76% |
ROA(3y)6.27%
ROA(5y)4%
ROE(3y)21.59%
ROE(5y)14.14%
ROIC(3y)11.39%
ROIC(5y)11.48%
1.3 Margins
CNE has a Operating Margin of 51.93%. This is amongst the best in the industry. CNE outperforms 98.13% of its industry peers.
CNE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 92.21%, CNE belongs to the top of the industry, outperforming 98.60% of the companies in the same industry.
CNE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 51.93% | ||
| PM (TTM) | N/A | ||
| GM | 92.21% |
OM growth 3Y11.34%
OM growth 5Y5.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.38%
GM growth 5Y-0.14%
2. Health
2.1 Basic Checks
CNE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for CNE remains at a similar level compared to 1 year ago.
The number of shares outstanding for CNE has been reduced compared to 5 years ago.
Compared to 1 year ago, CNE has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.05, we must say that CNE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.05, CNE perfoms like the industry average, outperforming 58.88% of the companies in the same industry.
CNE has a debt to FCF ratio of 18.62. This is a negative value and a sign of low solvency as CNE would need 18.62 years to pay back of all of its debts.
The Debt to FCF ratio of CNE (18.62) is better than 66.82% of its industry peers.
CNE has a Debt/Equity ratio of 1.97. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.97, CNE is doing worse than 74.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.97 | ||
| Debt/FCF | 18.62 | ||
| Altman-Z | 1.05 |
ROIC/WACC2.08
WACC6.14%
2.3 Liquidity
A Current Ratio of 0.91 indicates that CNE may have some problems paying its short term obligations.
CNE's Current ratio of 0.91 is in line compared to the rest of the industry. CNE outperforms 59.35% of its industry peers.
CNE has a Quick Ratio of 0.91. This is a bad value and indicates that CNE is not financially healthy enough and could expect problems in meeting its short term obligations.
CNE has a Quick ratio of 0.90. This is in the better half of the industry: CNE outperforms 63.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 154.29% over the past year.
The Revenue has grown by 19.03% in the past year. This is quite good.
Measured over the past years, CNE shows a quite strong growth in Revenue. The Revenue has been growing by 9.20% on average per year.
EPS 1Y (TTM)154.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%166.13%
Revenue 1Y (TTM)19.03%
Revenue growth 3Y6.58%
Revenue growth 5Y9.2%
Sales Q2Q%-31.47%
3.2 Future
The Earnings Per Share is expected to grow by 112.72% on average over the next years. This is a very strong growth
Based on estimates for the next years, CNE will show a decrease in Revenue. The Revenue will decrease by -2.86% on average per year.
EPS Next Y366.18%
EPS Next 2Y112.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-10.74%
Revenue Next 2Y-4.93%
Revenue Next 3Y-2.86%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 1.65 indicates a rather cheap valuation of CNE.
Based on the Price/Earnings ratio, CNE is valued cheaply inside the industry as 99.53% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CNE to the average of the S&P500 Index (26.54), we can say CNE is valued rather cheaply.
A Price/Forward Earnings ratio of 0.60 indicates a rather cheap valuation of CNE.
Based on the Price/Forward Earnings ratio, CNE is valued cheaper than 99.53% of the companies in the same industry.
CNE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.65 | ||
| Fwd PE | 0.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNE indicates a rather cheap valuation: CNE is cheaper than 93.46% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CNE is valued cheaper than 99.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.28 | ||
| EV/EBITDA | 2.56 |
4.3 Compensation for Growth
CNE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CNE has a very decent profitability rating, which may justify a higher PE ratio.
CNE's earnings are expected to grow with 112.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y112.72%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CNE has a Yearly Dividend Yield of 14.84%, which is a nice return.
In the last 3 months the price of CNE has falen by -32.55%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
CNE's Dividend Yield is rather good when compared to the industry average which is at 5.75. CNE pays more dividend than 99.53% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, CNE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.84% |
5.2 History
The dividend of CNE decreases each year by -0.14%.
CNE has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-0.14%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y112.72%
EPS Next 3YN/A
TSX:CNE (8/7/2025, 7:00:00 PM)
2.01
-0.04 (-1.95%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners27.68%
Inst Owner ChangeN/A
Ins Owners0.97%
Ins Owner ChangeN/A
Market Cap68.58M
Analysts47.27
Price Target3.65 (81.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.84% |
Yearly Dividend0.27
Dividend Growth(5Y)-0.14%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)0%
PT rev (3m)-31.75%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.98%
Revenue NY rev (3m)-2.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.65 | ||
| Fwd PE | 0.6 | ||
| P/S | 0.14 | ||
| P/FCF | 1.28 | ||
| P/OCF | 0.28 | ||
| P/B | 0.14 | ||
| P/tB | 0.14 | ||
| EV/EBITDA | 2.56 |
EPS(TTM)1.22
EY60.7%
EPS(NY)3.33
Fwd EY165.74%
FCF(TTM)1.57
FCFY78.04%
OCF(TTM)7.09
OCFY352.51%
SpS14.84
BVpS14.22
TBVpS14.22
PEG (NY)0
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.37% | ||
| ROE | -1.3% | ||
| ROCE | 17.72% | ||
| ROIC | 12.76% | ||
| ROICexc | 13.77% | ||
| ROICexgc | 13.77% | ||
| OM | 51.93% | ||
| PM (TTM) | N/A | ||
| GM | 92.21% | ||
| FCFM | 10.57% |
ROA(3y)6.27%
ROA(5y)4%
ROE(3y)21.59%
ROE(5y)14.14%
ROIC(3y)11.39%
ROIC(5y)11.48%
ROICexc(3y)11.7%
ROICexc(5y)12.43%
ROICexgc(3y)11.7%
ROICexgc(5y)12.43%
ROCE(3y)15.82%
ROCE(5y)15.95%
ROICexcg growth 3Y-0.67%
ROICexcg growth 5Y2.86%
ROICexc growth 3Y-0.67%
ROICexc growth 5Y2.86%
OM growth 3Y11.34%
OM growth 5Y5.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.38%
GM growth 5Y-0.14%
F-Score5
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.97 | ||
| Debt/FCF | 18.62 | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 171.17% | ||
| Cap/Sales | 37.17% | ||
| Interest Coverage | 3.6 | ||
| Cash Conversion | 64.82% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 1.05 |
F-Score5
WACC6.14%
ROIC/WACC2.08
Cap/Depr(3y)225.39%
Cap/Depr(5y)190.9%
Cap/Sales(3y)50.13%
Cap/Sales(5y)42.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)154.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%166.13%
EPS Next Y366.18%
EPS Next 2Y112.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)19.03%
Revenue growth 3Y6.58%
Revenue growth 5Y9.2%
Sales Q2Q%-31.47%
Revenue Next Year-10.74%
Revenue Next 2Y-4.93%
Revenue Next 3Y-2.86%
Revenue Next 5YN/A
EBIT growth 1Y32.98%
EBIT growth 3Y18.67%
EBIT growth 5Y14.93%
EBIT Next Year22.65%
EBIT Next 3Y6.74%
EBIT Next 5YN/A
FCF growth 1Y586.83%
FCF growth 3Y22.04%
FCF growth 5Y53.81%
OCF growth 1Y-1.34%
OCF growth 3Y10.72%
OCF growth 5Y9.16%