CANACOL ENERGY LTD (CNE.CA) Stock Fundamental Analysis
TSX:CNE - Toronto Stock Exchange - CA1348083025 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to CNE. CNE was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. CNE has an average financial health and profitability rating. CNE has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
CNE had negative earnings in the past year.
In the past year CNE had a positive cash flow from operations.
In multiple years CNE reported negative net income over the last 5 years.
Each year in the past 5 years CNE had a positive operating cash flow.
1.2 Ratios
CNE has a Return On Assets (-2.69%) which is in line with its industry peers.
CNE has a Return On Equity of -10.19%. This is comparable to the rest of the industry: CNE outperforms 42.58% of its industry peers.
CNE has a better Return On Invested Capital (12.96%) than 94.26% of its industry peers.
CNE had an Average Return On Invested Capital over the past 3 years of 11.39%. This is above the industry average of 7.47%.
The last Return On Invested Capital (12.96%) for CNE is above the 3 year average (11.39%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.69% | ||
| ROE | -10.19% | ||
| ROIC | 12.96% |
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
Looking at the Operating Margin, with a value of 51.25%, CNE belongs to the top of the industry, outperforming 98.09% of the companies in the same industry.
CNE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 92.27%, CNE belongs to the top of the industry, outperforming 98.56% of the companies in the same industry.
In the last couple of years the Gross Margin of CNE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 51.25% | ||
| PM (TTM) | N/A | ||
| GM | 92.27% |
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.
Compared to 1 year ago, CNE has about the same amount of shares outstanding.
Compared to 5 years ago, CNE has less shares outstanding
Compared to 1 year ago, CNE has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.11, we must say that CNE is in the distress zone and has some risk of bankruptcy.
CNE has a Altman-Z score of 1.11. This is in the better half of the industry: CNE outperforms 61.24% of its industry peers.
CNE has a debt to FCF ratio of 15.96. This is a negative value and a sign of low solvency as CNE would need 15.96 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 15.96, CNE is doing good in the industry, outperforming 66.51% of the companies in the same industry.
A Debt/Equity ratio of 2.21 is on the high side and indicates that CNE has dependencies on debt financing.
The Debt to Equity ratio of CNE (2.21) is worse than 82.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 15.96 | ||
| Altman-Z | 1.11 |
ROIC/WACC2.11
WACC6.13%
2.3 Liquidity
A Current Ratio of 1.20 indicates that CNE should not have too much problems paying its short term obligations.
CNE's Current ratio of 1.20 is fine compared to the rest of the industry. CNE outperforms 64.59% of its industry peers.
A Quick Ratio of 1.19 indicates that CNE should not have too much problems paying its short term obligations.
CNE's Quick ratio of 1.19 is fine compared to the rest of the industry. CNE outperforms 68.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The earnings per share for CNE have decreased strongly by -106.54% in the last year.
CNE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.03%.
The Revenue has been growing by 9.20% on average over the past years. This is quite good.
EPS 1Y (TTM)-106.54%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%745.45%
Revenue 1Y (TTM)19.03%
Revenue growth 3Y6.58%
Revenue growth 5Y9.2%
Sales Q2Q%-8.89%
3.2 Future
Based on estimates for the next years, CNE will show a very strong growth in Earnings Per Share. The EPS will grow by 112.72% on average per year.
Based on estimates for the next years, CNE will show a decrease in Revenue. The Revenue will decrease by -6.68% on average per year.
EPS Next Y366.18%
EPS Next 2Y112.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-8%
Revenue Next 2Y-6.68%
Revenue Next 3YN/A
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
The Price/Earnings Ratio is negative for CNE. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 0.83, the valuation of CNE can be described as very cheap.
Based on the Price/Forward Earnings ratio, CNE is valued cheaper than 98.56% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, CNE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 0.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNE is valued cheaper than 91.87% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CNE is valued cheaply inside the industry as 99.04% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.51 | ||
| EV/EBITDA | 2.62 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CNE may justify a higher PE ratio.
A more expensive valuation may be justified as CNE's earnings are expected to grow with 112.72% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y112.72%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 14.84%, CNE is a good candidate for dividend investing.
In the last 3 months the price of CNE has falen by -28.68%. 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 6.54. CNE pays more dividend than 99.52% of the companies in the same industry.
CNE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| 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
The earnings of CNE are negative and hence is the payout ratio. CNE will probably not be able to sustain this dividend level.
DP-20.49%
EPS Next 2Y112.72%
EPS Next 3YN/A
TSX:CNE (6/6/2025, 7:00:00 PM)
2.76
+0.07 (+2.6%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners23.57%
Inst Owner ChangeN/A
Ins Owners0.69%
Ins Owner ChangeN/A
Market Cap94.17M
Analysts47.27
Price Target3.65 (32.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.84% |
Yearly Dividend0.27
Dividend Growth(5Y)-0.14%
DP-20.49%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-122.68%
Min EPS beat(2)-182.97%
Max EPS beat(2)-62.4%
EPS beat(4)0
Avg EPS beat(4)-126.08%
Min EPS beat(4)-182.97%
Max EPS beat(4)-62.4%
EPS beat(8)2
Avg EPS beat(8)-4.52%
EPS beat(12)3
Avg EPS beat(12)-29.44%
EPS beat(16)3
Avg EPS beat(16)-41.94%
Revenue beat(2)2
Avg Revenue beat(2)7.04%
Min Revenue beat(2)4.01%
Max Revenue beat(2)10.08%
Revenue beat(4)4
Avg Revenue beat(4)6.91%
Min Revenue beat(4)4.01%
Max Revenue beat(4)10.08%
Revenue beat(8)6
Avg Revenue beat(8)-7.88%
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)-31.75%
PT rev (3m)-23.22%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.52%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 0.83 | ||
| P/S | 0.18 | ||
| P/FCF | 1.51 | ||
| P/OCF | 0.41 | ||
| P/B | 0.21 | ||
| P/tB | 0.21 | ||
| EV/EBITDA | 2.62 |
EPS(TTM)-0.19
EYN/A
EPS(NY)3.32
Fwd EY120.3%
FCF(TTM)1.83
FCFY66.35%
OCF(TTM)6.75
OCFY244.42%
SpS15.09
BVpS12.89
TBVpS12.89
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.69% | ||
| ROE | -10.19% | ||
| ROCE | 18% | ||
| ROIC | 12.96% | ||
| ROICexc | 13.99% | ||
| ROICexgc | 13.99% | ||
| OM | 51.25% | ||
| PM (TTM) | N/A | ||
| GM | 92.27% | ||
| FCFM | 12.14% |
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 Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 15.96 | ||
| Debt/EBITDA | 2.59 | ||
| Cap/Depr | 149.69% | ||
| Cap/Sales | 32.57% | ||
| Interest Coverage | 3.74 | ||
| Cash Conversion | 61.23% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 1.11 |
F-Score5
WACC6.13%
ROIC/WACC2.11
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)-106.54%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%745.45%
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%-8.89%
Revenue Next Year-8%
Revenue Next 2Y-6.68%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y35.66%
EBIT growth 3Y18.67%
EBIT growth 5Y14.93%
EBIT Next Year22.65%
EBIT Next 3Y6.74%
EBIT Next 5YN/A
FCF growth 1Y137.91%
FCF growth 3Y22.04%
FCF growth 5Y53.81%
OCF growth 1Y76.26%
OCF growth 3Y10.72%
OCF growth 5Y9.16%