CARDINAL ENERGY LTD (CJ.CA) Stock Fundamental Analysis
TSX:CJ - Toronto Stock Exchange - CA14150G4007 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to CJ. CJ was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. While CJ has a great profitability rating, there are some minor concerns on its financial health. CJ is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CJ was profitable.
In the past year CJ had a positive cash flow from operations.
Of the past 5 years CJ 4 years were profitable.
CJ 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 8.34%, CJ belongs to the top of the industry, outperforming 89.05% of the companies in the same industry.
CJ's Return On Equity of 12.36% is amongst the best of the industry. CJ outperforms 82.38% of its industry peers.
The Return On Invested Capital of CJ (9.95%) is better than 90.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CJ is significantly above the industry average of 7.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.34% | ||
| ROE | 12.36% | ||
| ROIC | 9.95% |
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
CJ's Profit Margin of 22.39% is amongst the best of the industry. CJ outperforms 85.24% of its industry peers.
In the last couple of years the Profit Margin of CJ has declined.
CJ's Operating Margin of 30.88% is amongst the best of the industry. CJ outperforms 80.95% of its industry peers.
CJ's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.88% | ||
| PM (TTM) | 22.39% | ||
| 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.
Compared to 5 years ago, CJ has more shares outstanding
CJ has a worse debt/assets ratio than last year.
2.2 Solvency
CJ has an Altman-Z score of 1.91. This is not the best score and indicates that CJ is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.91, CJ is in the better half of the industry, outperforming 67.62% of the companies in the same industry.
CJ has a debt to FCF ratio of 2.24. This is a good value and a sign of high solvency as CJ would need 2.24 years to pay back of all of its debts.
CJ has a better Debt to FCF ratio (2.24) than 83.33% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that CJ is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.12, CJ is doing good in the industry, outperforming 68.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 1.91 |
ROIC/WACC1.2
WACC8.31%
2.3 Liquidity
CJ has a Current Ratio of 0.40. This is a bad value and indicates that CJ is not financially healthy enough and could expect problems in meeting its short term obligations.
CJ has a worse Current ratio (0.40) than 81.43% of its industry peers.
A Quick Ratio of 0.40 indicates that CJ may have some problems paying its short term obligations.
The Quick ratio of CJ (0.40) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.11% over the past year.
The earnings per share for CJ have been decreasing by -28.40% on average. This is quite bad
Looking at the last year, CJ shows a small growth in Revenue. The Revenue has grown by 3.80% in the last year.
The Revenue has been growing by 8.92% on average over the past years. This is quite good.
EPS 1Y (TTM)11.11%
EPS 3Y-28.4%
EPS 5YN/A
EPS Q2Q%30%
Revenue 1Y (TTM)3.8%
Revenue growth 3Y10.24%
Revenue growth 5Y8.92%
Sales Q2Q%2.9%
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-12.37%
EPS Next 2Y0.73%
EPS Next 3Y9.54%
EPS Next 5Y-16.93%
Revenue Next Year-4.96%
Revenue Next 2Y-3.66%
Revenue Next 3Y-2.28%
Revenue Next 5Y-0.91%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.67 indicates a reasonable valuation of CJ.
CJ's Price/Earnings ratio is a bit cheaper when compared to the industry. CJ is cheaper than 69.52% of the companies in the same industry.
CJ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
A Price/Forward Earnings ratio of 9.96 indicates a reasonable valuation of CJ.
Based on the Price/Forward Earnings ratio, CJ is valued a bit cheaper than 60.48% of the companies in the same industry.
CJ is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.67 | ||
| Fwd PE | 9.96 |
4.2 Price Multiples
84.76% of the companies in the same industry are more expensive than CJ, based on the Enterprise Value to EBITDA ratio.
CJ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CJ is cheaper than 61.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.78 | ||
| EV/EBITDA | 4.53 |
4.3 Compensation for Growth
CJ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.73%
EPS Next 3Y9.54%
5. Dividend
5.1 Amount
CJ has a Yearly Dividend Yield of 10.78%, which is a nice return.
Compared to an average industry Dividend Yield of 6.26, CJ pays a better dividend. On top of this CJ pays more dividend than 97.62% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, CJ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.78% |
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.
CJ has decreased its dividend in the last 3 years.
Dividend Growth(5Y)36.23%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
CJ pays out 102.29% of its income as dividend. This is not a sustainable payout ratio.
CJ's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP102.29%
EPS Next 2Y0.73%
EPS Next 3Y9.54%
TSX:CJ (7/4/2025, 7:00:00 PM)
6.77
+0.09 (+1.35%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners7.23%
Inst Owner ChangeN/A
Ins Owners20.83%
Ins Owner ChangeN/A
Market Cap1.09B
Analysts78.46
Price Target7.04 (3.99%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.78% |
Yearly Dividend0.73
Dividend Growth(5Y)36.23%
DP102.29%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.29%
Min EPS beat(2)-22.72%
Max EPS beat(2)-5.85%
EPS beat(4)0
Avg EPS beat(4)-16.71%
Min EPS beat(4)-30.44%
Max EPS beat(4)-5.85%
EPS beat(8)0
Avg EPS beat(8)-22.45%
EPS beat(12)2
Avg EPS beat(12)-4.12%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-11.71%
Min Revenue beat(2)-20.5%
Max Revenue beat(2)-2.92%
Revenue beat(4)0
Avg Revenue beat(4)-13.65%
Min Revenue beat(4)-31%
Max Revenue beat(4)-0.17%
Revenue beat(8)0
Avg Revenue beat(8)-13.01%
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)-2.82%
PT rev (3m)-6.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-54.55%
EPS NY rev (1m)0%
EPS NY rev (3m)1.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.67 | ||
| Fwd PE | 9.96 | ||
| P/S | 2.16 | ||
| P/FCF | 21.78 | ||
| P/OCF | 4 | ||
| P/B | 1.19 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 4.53 |
EPS(TTM)0.7
EY10.34%
EPS(NY)0.68
Fwd EY10.04%
FCF(TTM)0.31
FCFY4.59%
OCF(TTM)1.69
OCFY25%
SpS3.14
BVpS5.68
TBVpS5.68
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.34% | ||
| ROE | 12.36% | ||
| ROCE | 13.04% | ||
| ROIC | 9.95% | ||
| ROICexc | 9.95% | ||
| ROICexgc | 9.95% | ||
| OM | 30.88% | ||
| PM (TTM) | 22.39% | ||
| GM | N/A | ||
| FCFM | 9.91% |
ROA(3y)14.43%
ROA(5y)4.25%
ROE(3y)18.59%
ROE(5y)-0.42%
ROIC(3y)12.57%
ROIC(5y)N/A
ROICexc(3y)12.57%
ROICexc(5y)N/A
ROICexgc(3y)12.57%
ROICexgc(5y)N/A
ROCE(3y)16.48%
ROCE(5y)N/A
ROICexcg growth 3Y6.09%
ROICexcg growth 5Y25.47%
ROICexc growth 3Y6.09%
ROICexc growth 5Y25.47%
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
F-Score5
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 2.24 | ||
| Debt/EBITDA | 0.42 | ||
| Cap/Depr | 209.8% | ||
| Cap/Sales | 44.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 104.05% | ||
| Profit Quality | 44.28% | ||
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z | 1.91 |
F-Score5
WACC8.31%
ROIC/WACC1.2
Cap/Depr(3y)141.49%
Cap/Depr(5y)107.54%
Cap/Sales(3y)28.5%
Cap/Sales(5y)23.08%
Profit Quality(3y)73.68%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.11%
EPS 3Y-28.4%
EPS 5YN/A
EPS Q2Q%30%
EPS Next Y-12.37%
EPS Next 2Y0.73%
EPS Next 3Y9.54%
EPS Next 5Y-16.93%
Revenue 1Y (TTM)3.8%
Revenue growth 3Y10.24%
Revenue growth 5Y8.92%
Sales Q2Q%2.9%
Revenue Next Year-4.96%
Revenue Next 2Y-3.66%
Revenue Next 3Y-2.28%
Revenue Next 5Y-0.91%
EBIT growth 1Y11.09%
EBIT growth 3Y12.11%
EBIT growth 5Y28.89%
EBIT Next Year113.34%
EBIT Next 3Y44.95%
EBIT Next 5Y12.74%
FCF growth 1Y-77.15%
FCF growth 3Y-5.84%
FCF growth 5Y2.27%
OCF growth 1Y-17.02%
OCF growth 3Y25.54%
OCF growth 5Y15.58%