CARDINAL ENERGY LTD (CJ.CA) Stock Fundamental Analysis
TSX:CJ - Toronto Stock Exchange - CA14150G4007 - Common Stock - Currency: CAD
Taking everything into account, CJ scores 5 out of 10 in our fundamental rating. CJ was compared to 221 industry peers in the Oil, Gas & Consumable Fuels industry. While CJ belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CJ is valued quite cheap, but it does not seem to be growing.
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.
In multiple years CJ reported negative net income over the last 5 years.
Each year in the past 5 years CJ had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.23%, CJ belongs to the best of the industry, outperforming 90.95% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.21%, CJ belongs to the top of the industry, outperforming 85.07% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.00%, CJ belongs to the best of the industry, outperforming 90.05% of the companies in the same industry.
CJ had an Average Return On Invested Capital over the past 3 years of 12.05%. This is above the industry average of 7.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.23% | ||
| ROE | 11.21% | ||
| ROIC | 10% |
ROA(3y)20.45%
ROA(5y)1.98%
ROE(3y)27.84%
ROE(5y)-3.71%
ROIC(3y)12.05%
ROIC(5y)N/A
1.3 Margins
CJ has a Profit Margin of 20.69%. This is amongst the best in the industry. CJ outperforms 81.00% of its industry peers.
In the last couple of years the Profit Margin of CJ has grown nicely.
The Operating Margin of CJ (29.72%) is better than 81.45% of its industry peers.
In the last couple of years the Operating Margin of CJ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.72% | ||
| PM (TTM) | 20.69% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5Y21.48%
PM growth 3YN/A
PM growth 5Y2.57%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
CJ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CJ has more shares outstanding than it did 1 year ago.
CJ has more shares outstanding than it did 5 years ago.
CJ has a worse debt/assets ratio than last year.
2.2 Solvency
CJ has an Altman-Z score of 2.26. 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.
CJ has a Altman-Z score of 2.26. This is in the better half of the industry: CJ outperforms 74.21% of its industry peers.
The Debt to FCF ratio of CJ is 0.88, which is an excellent value as it means it would take CJ, only 0.88 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.88, CJ belongs to the top of the industry, outperforming 93.21% of the companies in the same industry.
A Debt/Equity ratio of 0.08 indicates that CJ is not too dependend on debt financing.
CJ has a better Debt to Equity ratio (0.08) than 72.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.88 | ||
| Altman-Z | 2.26 |
ROIC/WACC1.25
WACC8%
2.3 Liquidity
A Current Ratio of 0.50 indicates that CJ may have some problems paying its short term obligations.
CJ's Current ratio of 0.50 is on the low side compared to the rest of the industry. CJ is outperformed by 74.66% of its industry peers.
CJ has a Quick Ratio of 0.50. 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's Quick ratio of 0.50 is in line compared to the rest of the industry. CJ outperforms 45.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The earnings per share for CJ have decreased strongly by -43.22% in the last year.
Measured over the past 5 years, CJ shows a small growth in Earnings Per Share. The EPS has been growing by 3.91% on average per year.
Looking at the last year, CJ shows a small growth in Revenue. The Revenue has grown by 1.95% in the last year.
The Revenue has been growing by 8.57% on average over the past years. This is quite good.
EPS 1Y (TTM)-43.22%
EPS 3YN/A
EPS 5Y3.91%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)1.95%
Revenue growth 3Y34.49%
Revenue growth 5Y8.57%
Sales Q2Q%-13.8%
3.2 Future
Based on estimates for the next years, CJ will show a small growth in Earnings Per Share. The EPS will grow by 7.01% on average per year.
Based on estimates for the next years, CJ will show a decrease in Revenue. The Revenue will decrease by -1.50% on average per year.
EPS Next Y12.27%
EPS Next 2Y-4.03%
EPS Next 3Y9.06%
EPS Next 5Y7.01%
Revenue Next Year-3.21%
Revenue Next 2Y-4.67%
Revenue Next 3Y-1.28%
Revenue Next 5Y-1.5%
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
With a Price/Earnings ratio of 9.12, the valuation of CJ can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CJ indicates a somewhat cheap valuation: CJ is cheaper than 71.04% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CJ to the average of the S&P500 Index (29.35), we can say CJ is valued rather cheaply.
A Price/Forward Earnings ratio of 10.53 indicates a reasonable valuation of CJ.
The rest of the industry has a similar Price/Forward Earnings ratio as CJ.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, CJ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.12 | ||
| Fwd PE | 10.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CJ is valued cheaper than 84.16% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CJ is valued a bit cheaper than the industry average as 68.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.59 | ||
| EV/EBITDA | 4.16 |
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.
CJ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.74
PEG (5Y)2.33
EPS Next 2Y-4.03%
EPS Next 3Y9.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.00%, CJ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.64, CJ pays a better dividend. On top of this CJ pays more dividend than 98.19% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, CJ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12% |
5.2 History
On average, the dividend of CJ grows each year by 12.39%, which is quite nice.
CJ has been paying a dividend for at least 10 years, so it has a reliable track record.
CJ has decreased its dividend recently.
Dividend Growth(5Y)12.39%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
112.95% of the earnings are spent on dividend by CJ. This is not a sustainable payout ratio.
The dividend of CJ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP112.95%
EPS Next 2Y-4.03%
EPS Next 3Y9.06%
TSX:CJ (3/7/2025, 7:00:00 PM)
6.11
+0.11 (+1.83%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners6.81%
Inst Owner ChangeN/A
Ins Owners20.81%
Ins Owner ChangeN/A
Market Cap976.13M
Analysts46.67
Price Target7.55 (23.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12% |
Yearly Dividend0.74
Dividend Growth(5Y)12.39%
DP112.95%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-19.14%
Min EPS beat(2)-30.44%
Max EPS beat(2)-7.83%
EPS beat(4)0
Avg EPS beat(4)-24.58%
Min EPS beat(4)-30.65%
Max EPS beat(4)-7.83%
EPS beat(8)1
Avg EPS beat(8)-4.45%
EPS beat(12)4
Avg EPS beat(12)3.17%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-15.58%
Min Revenue beat(2)-31%
Max Revenue beat(2)-0.17%
Revenue beat(4)0
Avg Revenue beat(4)-13.9%
Min Revenue beat(4)-31%
Max Revenue beat(4)-0.17%
Revenue beat(8)0
Avg Revenue beat(8)-14.72%
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)-0.8%
PT rev (3m)0.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.13%
EPS NY rev (1m)0%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.12 | ||
| Fwd PE | 10.53 | ||
| P/S | 1.96 | ||
| P/FCF | 11.59 | ||
| P/OCF | 3.7 | ||
| P/B | 1.06 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 4.16 |
EPS(TTM)0.67
EY10.97%
EPS(NY)0.58
Fwd EY9.5%
FCF(TTM)0.53
FCFY8.63%
OCF(TTM)1.65
OCFY27.02%
SpS3.11
BVpS5.75
TBVpS5.75
PEG (NY)0.74
PEG (5Y)2.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.23% | ||
| ROE | 11.21% | ||
| ROCE | 13.1% | ||
| ROIC | 10% | ||
| ROICexc | 10% | ||
| ROICexgc | 10% | ||
| OM | 29.72% | ||
| PM (TTM) | 20.69% | ||
| GM | N/A | ||
| FCFM | 16.92% |
ROA(3y)20.45%
ROA(5y)1.98%
ROE(3y)27.84%
ROE(5y)-3.71%
ROIC(3y)12.05%
ROIC(5y)N/A
ROICexc(3y)12.05%
ROICexc(5y)N/A
ROICexgc(3y)12.05%
ROICexgc(5y)N/A
ROCE(3y)15.8%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y33.97%
ROICexc growth 3YN/A
ROICexc growth 5Y33.97%
OM growth 3YN/A
OM growth 5Y21.48%
PM growth 3YN/A
PM growth 5Y2.57%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.88 | ||
| Debt/EBITDA | 0.29 | ||
| Cap/Depr | 171.58% | ||
| Cap/Sales | 36.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 104.46% | ||
| Profit Quality | 81.81% | ||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 2.26 |
F-Score4
WACC8%
ROIC/WACC1.25
Cap/Depr(3y)104.41%
Cap/Depr(5y)86.26%
Cap/Sales(3y)20.71%
Cap/Sales(5y)19.63%
Profit Quality(3y)63.48%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-43.22%
EPS 3YN/A
EPS 5Y3.91%
EPS Q2Q%-33.33%
EPS Next Y12.27%
EPS Next 2Y-4.03%
EPS Next 3Y9.06%
EPS Next 5Y7.01%
Revenue 1Y (TTM)1.95%
Revenue growth 3Y34.49%
Revenue growth 5Y8.57%
Sales Q2Q%-13.8%
Revenue Next Year-3.21%
Revenue Next 2Y-4.67%
Revenue Next 3Y-1.28%
Revenue Next 5Y-1.5%
EBIT growth 1Y2.41%
EBIT growth 3YN/A
EBIT growth 5Y31.89%
EBIT Next Year80.46%
EBIT Next 3Y30.29%
EBIT Next 5Y6.83%
FCF growth 1Y-61.11%
FCF growth 3Y100.38%
FCF growth 5Y30.41%
OCF growth 1Y-17.71%
OCF growth 3Y74.28%
OCF growth 5Y20.99%