CARDINAL ENERGY LTD (CJ.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CJ - CA14150G4007 - Common Stock
8.86 CAD
0 (0%)
CJ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 214 industry peers in the Oil, Gas & Consumable Fuels industry. CJ has an excellent profitability rating, but there are concerns on its financial health. CJ does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- CJ had positive earnings in the past year.
- CJ had a positive operating cash flow in the past year.
- CJ had positive earnings in 4 of the past 5 years.
- CJ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CJ has a Return On Assets of 5.45%. This is amongst the best in the industry. CJ outperforms 85.98% of its industry peers.
- The Return On Equity of CJ (8.59%) is better than 65.89% of its industry peers.
- CJ has a Return On Invested Capital of 6.45%. This is amongst the best in the industry. CJ outperforms 82.24% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CJ is significantly above the industry average of 6.53%.
- The 3 year average ROIC (12.57%) for CJ is well above the current ROIC(6.45%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.45% | ||
| ROE | 8.59% | ||
| ROIC | 6.45% |
ROA(3y)14.43%
ROA(5y)4.25%
ROE(3y)18.59%
ROE(5y)-0.42%
ROIC(3y)12.57%
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of CJ (16.96%) is better than 79.91% of its industry peers.
- In the last couple of years the Profit Margin of CJ has declined.
- CJ has a Operating Margin of 24.12%. This is in the better half of the industry: CJ outperforms 79.91% of its industry peers.
- CJ's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.12% | ||
| PM (TTM) | 16.96% | ||
| GM | N/A |
OM growth 3Y1.7%
OM growth 5Y18.33%
PM growth 3Y-34.24%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CJ is still creating some value.
- The number of shares outstanding for CJ has been increased compared to 1 year ago.
- The number of shares outstanding for CJ has been increased compared to 5 years ago.
- Compared to 1 year ago, CJ has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 1.96 indicates that CJ is not a great score, but indicates only limited risk for bankruptcy at the moment.
- CJ's Altman-Z score of 1.96 is fine compared to the rest of the industry. CJ outperforms 69.63% of its industry peers.
- A Debt/Equity ratio of 0.24 indicates that CJ is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.24, CJ is in the better half of the industry, outperforming 64.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.96 |
ROIC/WACC0.8
WACC8.04%
2.3 Liquidity
- A Current Ratio of 0.48 indicates that CJ may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.48, CJ is doing worse than 71.03% of the companies in the same industry.
- A Quick Ratio of 0.48 indicates that CJ may have some problems paying its short term obligations.
- The Quick ratio of CJ (0.48) is worse than 64.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
- CJ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.36%.
- CJ shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -28.40% yearly.
- Looking at the last year, CJ shows a decrease in Revenue. The Revenue has decreased by -9.30% in the last year.
- Measured over the past years, CJ shows a quite strong growth in Revenue. The Revenue has been growing by 8.92% on average per year.
EPS 1Y (TTM)-28.36%
EPS 3Y-28.4%
EPS 5YN/A
EPS Q2Q%-43.75%
Revenue 1Y (TTM)-9.3%
Revenue growth 3Y10.24%
Revenue growth 5Y8.92%
Sales Q2Q%-13.03%
3.2 Future
- CJ is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -16.93% yearly.
- Based on estimates for the next years, CJ will show a decrease in Revenue. The Revenue will decrease by -0.91% on average per year.
EPS Next Y-40.04%
EPS Next 2Y-18.38%
EPS Next 3Y-4.12%
EPS Next 5Y-16.93%
Revenue Next Year-14.17%
Revenue Next 2Y1.56%
Revenue Next 3Y-2.46%
Revenue Next 5Y-0.91%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- Based on the Price/Earnings ratio of 18.46, the valuation of CJ can be described as rather expensive.
- Based on the Price/Earnings ratio, CJ is valued a bit cheaper than 65.42% of the companies in the same industry.
- CJ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- CJ is valuated rather expensively with a Price/Forward Earnings ratio of 19.85.
- CJ's Price/Forward Earnings is on the same level as the industry average.
- CJ's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.46 | ||
| Fwd PE | 19.85 |
4.2 Price Multiples
- 74.30% of the companies in the same industry are more expensive than CJ, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.7 |
4.3 Compensation for Growth
- The decent profitability rating of CJ may justify a higher PE ratio.
- A cheap valuation may be justified as CJ's earnings are expected to decrease with -4.12% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-18.38%
EPS Next 3Y-4.12%
5. Dividend
5.1 Amount
- CJ has a Yearly Dividend Yield of 8.40%, which is a nice return.
- CJ's Dividend Yield is rather good when compared to the industry average which is at 2.82. CJ pays more dividend than 97.20% of the companies in the same industry.
- CJ's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.4% |
5.2 History
- The dividend of CJ is nicely growing with an annual growth rate of 36.23%!
- CJ has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of CJ decreased in the last 3 years.
Dividend Growth(5Y)36.23%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- CJ pays out 150.40% of its income as dividend. This is not a sustainable payout ratio.
- The Dividend Rate of CJ has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP150.4%
EPS Next 2Y-18.38%
EPS Next 3Y-4.12%
CARDINAL ENERGY LTD / CJ.CA FAQ
What is the ChartMill fundamental rating of CARDINAL ENERGY LTD (CJ.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to CJ.CA.
What is the valuation status for CJ stock?
ChartMill assigns a valuation rating of 3 / 10 to CARDINAL ENERGY LTD (CJ.CA). This can be considered as Overvalued.
Can you provide the profitability details for CARDINAL ENERGY LTD?
CARDINAL ENERGY LTD (CJ.CA) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for CJ stock?
The Earnings per Share (EPS) of CARDINAL ENERGY LTD (CJ.CA) is expected to decline by -40.04% in the next year.
How sustainable is the dividend of CARDINAL ENERGY LTD (CJ.CA) stock?
The dividend rating of CARDINAL ENERGY LTD (CJ.CA) is 6 / 10 and the dividend payout ratio is 150.4%.