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 218 industry peers in the Oil, Gas & Consumable Fuels industry. CNE has only an average score on both its financial health and profitability. CNE is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
CNE had negative earnings in the past year.
CNE had a positive operating cash flow in the past year.
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
With a Return On Assets value of -2.69%, CNE perfoms like the industry average, outperforming 46.79% of the companies in the same industry.
CNE has a Return On Equity (-10.19%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 12.96%, CNE belongs to the top of the industry, outperforming 94.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CNE is above the industry average of 7.29%.
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
With an excellent Operating Margin value of 51.25%, CNE belongs to the best of the industry, outperforming 98.17% of the companies in the same industry.
In the last couple of years the Operating Margin of CNE has grown nicely.
The Gross Margin of CNE (92.27%) is better than 98.17% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CNE is creating value.
The number of shares outstanding for CNE remains at a similar level compared to 1 year ago.
CNE has less shares outstanding than it did 5 years ago.
CNE has a worse debt/assets ratio than last year.
2.2 Solvency
CNE has an Altman-Z score of 1.11. This is a bad value and indicates that CNE is not financially healthy and even has some risk of bankruptcy.
CNE has a better Altman-Z score (1.11) than 63.30% of its industry peers.
The Debt to FCF ratio of CNE is 15.96, which is on the high side as it means it would take CNE, 15.96 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CNE (15.96) is better than 67.89% of its industry peers.
A Debt/Equity ratio of 2.21 is on the high side and indicates that CNE has dependencies on debt financing.
CNE has a Debt to Equity ratio of 2.21. This is amonst the worse of the industry: CNE underperforms 83.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 15.96 | ||
| Altman-Z | 1.11 |
ROIC/WACC2.1
WACC6.16%
2.3 Liquidity
A Current Ratio of 1.20 indicates that CNE should not have too much problems paying its short term obligations.
CNE has a better Current ratio (1.20) than 63.30% of its industry peers.
CNE has a Quick Ratio of 1.19. This is a normal value and indicates that CNE is financially healthy and should not expect problems in meeting its short term obligations.
CNE's Quick ratio of 1.19 is fine compared to the rest of the industry. CNE outperforms 69.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
CNE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -138.10%.
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)-138.1%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-185.23%
Revenue 1Y (TTM)19.03%
Revenue growth 3Y6.58%
Revenue growth 5Y9.2%
Sales Q2Q%24.87%
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
CNE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 0.83, the valuation of CNE can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CNE indicates a rather cheap valuation: CNE is cheaper than 98.62% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.49. CNE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 0.83 |
4.2 Price Multiples
92.20% of the companies in the same industry are more expensive than CNE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CNE is valued cheaply inside the industry as 99.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.6 | ||
| EV/EBITDA | 2.63 |
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.
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
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 -22.57%. 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 7.45. CNE pays more dividend than 99.08% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, 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.
CNE has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-0.14%
Div Incr Years0
Div Non Decr Years4
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 (5/1/2025, 7:00:00 PM)
2.95
-0.02 (-0.67%)
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 Cap100.65M
Analysts47.27
Price Target5.36 (81.69%)
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 Years4
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)12.5%
PT rev (3m)6.87%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.87%
Revenue NY rev (3m)9.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 0.83 | ||
| P/S | 0.19 | ||
| P/FCF | 1.6 | ||
| P/OCF | 0.43 | ||
| P/B | 0.23 | ||
| P/tB | 0.23 | ||
| EV/EBITDA | 2.63 |
EPS(TTM)-1.33
EYN/A
EPS(NY)3.53
Fwd EY119.79%
FCF(TTM)1.85
FCFY62.68%
OCF(TTM)6.81
OCFY230.88%
SpS15.24
BVpS13.02
TBVpS13.02
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
WACC6.16%
ROIC/WACC2.1
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)-138.1%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-185.23%
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%24.87%
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 Year24.76%
EBIT Next 3YN/A
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%