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CANACOL ENERGY LTD (CNE.CA) Stock Fundamental Analysis

TSX:CNE - Toronto Stock Exchange - CA1348083025 - Common Stock - Currency: CAD

3.72  -0.04 (-1.06%)

Fundamental Rating

4

CNE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 221 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of CNE while its profitability can be described as average. CNE is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

In the past year CNE was profitable.
In the past year CNE had a positive cash flow from operations.
CNE had positive earnings in 4 of the past 5 years.
In the past 5 years CNE always reported a positive cash flow from operatings.
CNE.CA Yearly Net Income VS EBIT VS OCF VS FCFCNE.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 100M -100M

1.2 Ratios

CNE has a Return On Assets (1.84%) which is comparable to the rest of the industry.
CNE has a Return On Equity of 6.52%. This is comparable to the rest of the industry: CNE outperforms 55.07% of its industry peers.
CNE has a better Return On Invested Capital (11.20%) than 90.82% of its industry peers.
Industry RankSector Rank
ROA 1.84%
ROE 6.52%
ROIC 11.2%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
CNE.CA Yearly ROA, ROE, ROICCNE.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40 -60

1.3 Margins

The Profit Margin of CNE (6.36%) is comparable to the rest of the industry.
The Operating Margin of CNE (48.91%) is better than 97.58% of its industry peers.
CNE's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 90.89%, CNE belongs to the best of the industry, outperforming 97.10% of the companies in the same industry.
CNE's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 48.91%
PM (TTM) 6.36%
GM 90.89%
OM growth 3Y3.47%
OM growth 5Y11.71%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.04%
GM growth 5Y0.83%
CNE.CA Yearly Profit, Operating, Gross MarginsCNE.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CNE is destroying value.
There is no outstanding debt for CNE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
CNE.CA Yearly Shares OutstandingCNE.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 10M 20M 30M
CNE.CA Yearly Total Debt VS Total AssetsCNE.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M 1B

2.2 Solvency

CNE has an Altman-Z score of 1.10. This is a bad value and indicates that CNE is not financially healthy and even has some risk of bankruptcy.
CNE has a Altman-Z score of 1.10. This is in the better half of the industry: CNE outperforms 60.39% of its industry peers.
A Debt/Equity ratio of 2.08 is on the high side and indicates that CNE has dependencies on debt financing.
CNE has a Debt to Equity ratio of 2.08. This is amonst the worse of the industry: CNE underperforms 83.09% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.08
Debt/FCF N/A
Altman-Z 1.1
ROIC/WACC0.9
WACC12.41%
CNE.CA Yearly LT Debt VS Equity VS FCFCNE.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M

2.3 Liquidity

A Current Ratio of 1.50 indicates that CNE should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.50, CNE is doing good in the industry, outperforming 69.08% of the companies in the same industry.
CNE has a Quick Ratio of 1.50. This is a normal value and indicates that CNE is financially healthy and should not expect problems in meeting its short term obligations.
CNE has a Quick ratio of 1.50. This is in the better half of the industry: CNE outperforms 73.91% of its industry peers.
Industry RankSector Rank
Current Ratio 1.5
Quick Ratio 1.5
CNE.CA Yearly Current Assets VS Current LiabilitesCNE.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M 200M

1

3. Growth

3.1 Past

The earnings per share for CNE have decreased strongly by -57.86% in the last year.
CNE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.72%.
The Revenue has been growing slightly by 7.26% on average over the past years.
EPS 1Y (TTM)-57.86%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1600%
Revenue 1Y (TTM)13.72%
Revenue growth 3Y4.24%
Revenue growth 5Y7.26%
Sales Q2Q%23.39%

3.2 Future

Based on estimates for the next years, CNE will show a decrease in Earnings Per Share. The EPS will decrease by -6.49% on average per year.
Based on estimates for the next years, CNE will show a decrease in Revenue. The Revenue will decrease by -1.66% on average per year.
EPS Next Y-60.19%
EPS Next 2Y-3.43%
EPS Next 3Y-6.49%
EPS Next 5YN/A
Revenue Next Year13.85%
Revenue Next 2Y-1.23%
Revenue Next 3Y-1.66%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
CNE.CA Yearly Revenue VS EstimatesCNE.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M
CNE.CA Yearly EPS VS EstimatesCNE.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2 -2 -4

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 3.92, the valuation of CNE can be described as very cheap.
Based on the Price/Earnings ratio, CNE is valued cheaper than 94.69% of the companies in the same industry.
When comparing the Price/Earnings ratio of CNE to the average of the S&P500 Index (30.43), we can say CNE is valued rather cheaply.
A Price/Forward Earnings ratio of 1.12 indicates a rather cheap valuation of CNE.
98.07% of the companies in the same industry are more expensive than CNE, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.78. CNE is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 3.92
Fwd PE 1.12
CNE.CA Price Earnings VS Forward Price EarningsCNE.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

CNE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CNE is cheaper than 89.86% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 2.96
CNE.CA Per share dataCNE.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

4.3 Compensation for Growth

CNE has a very decent profitability rating, which may justify a higher PE ratio.
CNE's earnings are expected to decrease with -6.49% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.43%
EPS Next 3Y-6.49%

0

5. Dividend

5.1 Amount

No dividends for CNE!.
Industry RankSector Rank
Dividend Yield N/A

CANACOL ENERGY LTD

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

3.72

-0.04 (-1.06%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-07 2024-11-07/amc
Earnings (Next)N/A N/A
Inst Owners23.47%
Inst Owner ChangeN/A
Ins Owners0.72%
Ins Owner ChangeN/A
Market Cap126.93M
Analysts47.27
Price Target4.76 (27.96%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.8
Dividend Growth(5Y)56.51%
DP58.68%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-118.18%
Min EPS beat(2)-173.96%
Max EPS beat(2)-62.4%
EPS beat(4)1
Avg EPS beat(4)-63.04%
Min EPS beat(4)-173.96%
Max EPS beat(4)69.18%
EPS beat(8)2
Avg EPS beat(8)4.43%
EPS beat(12)3
Avg EPS beat(12)-18.86%
EPS beat(16)3
Avg EPS beat(16)-36.04%
Revenue beat(2)2
Avg Revenue beat(2)6.44%
Min Revenue beat(2)4.01%
Max Revenue beat(2)8.88%
Revenue beat(4)4
Avg Revenue beat(4)6.23%
Min Revenue beat(4)4.01%
Max Revenue beat(4)8.88%
Revenue beat(8)6
Avg Revenue beat(8)-8.53%
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)-5%
PT rev (3m)-31.09%
EPS NQ rev (1m)-1.16%
EPS NQ rev (3m)3.66%
EPS NY rev (1m)-16.29%
EPS NY rev (3m)-37.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.9%
Valuation
Industry RankSector Rank
PE 3.92
Fwd PE 1.12
P/S 0.25
P/FCF N/A
P/OCF 0.6
P/B 0.26
P/tB 0.26
EV/EBITDA 2.96
EPS(TTM)0.95
EY25.54%
EPS(NY)3.33
Fwd EY89.64%
FCF(TTM)-0.74
FCFYN/A
OCF(TTM)6.16
OCFY165.63%
SpS14.78
BVpS14.41
TBVpS14.41
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.84%
ROE 6.52%
ROCE 15.55%
ROIC 11.2%
ROICexc 11.91%
ROICexgc 11.91%
OM 48.91%
PM (TTM) 6.36%
GM 90.89%
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y3.47%
OM growth 5Y11.71%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.04%
GM growth 5Y0.83%
F-Score5
Asset Turnover0.29
Health
Industry RankSector Rank
Debt/Equity 2.08
Debt/FCF N/A
Debt/EBITDA 2.86
Cap/Depr 210.61%
Cap/Sales 46.73%
Interest Coverage 3.55
Cash Conversion 58.65%
Profit Quality N/A
Current Ratio 1.5
Quick Ratio 1.5
Altman-Z 1.1
F-Score5
WACC12.41%
ROIC/WACC0.9
Cap/Depr(3y)224.09%
Cap/Depr(5y)198.94%
Cap/Sales(3y)49.87%
Cap/Sales(5y)44.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-57.86%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1600%
EPS Next Y-60.19%
EPS Next 2Y-3.43%
EPS Next 3Y-6.49%
EPS Next 5YN/A
Revenue 1Y (TTM)13.72%
Revenue growth 3Y4.24%
Revenue growth 5Y7.26%
Sales Q2Q%23.39%
Revenue Next Year13.85%
Revenue Next 2Y-1.23%
Revenue Next 3Y-1.66%
Revenue Next 5YN/A
EBIT growth 1Y21.18%
EBIT growth 3Y7.86%
EBIT growth 5Y19.82%
EBIT Next Year78.31%
EBIT Next 3Y20.04%
EBIT Next 5YN/A
FCF growth 1Y-166.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-9.83%
OCF growth 3Y-14.46%
OCF growth 5Y0.28%