CANACOL ENERGY LTD (CNE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CNE - CA1348083025 - Common Stock
1.53 CAD
-0.28 (-15.47%)
CNE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 206 industry peers in the Oil, Gas & Consumable Fuels industry. While CNE has a great profitability rating, there are quite some concerns on its financial health. CNE is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year CNE has reported negative net income.
- In the past year CNE had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: CNE reported negative net income in multiple years.
- In the past 5 years CNE always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.01%, CNE is in the better half of the industry, outperforming 73.39% of the companies in the same industry.
- CNE has a better Return On Equity (10.08%) than 80.73% of its industry peers.
- CNE has a better Return On Invested Capital (9.45%) than 91.74% 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 6.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.01% | ||
| ROE | 10.08% | ||
| ROIC | 9.45% |
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
- CNE's Profit Margin of 12.19% is fine compared to the rest of the industry. CNE outperforms 74.77% of its industry peers.
- CNE's Operating Margin of 45.49% is amongst the best of the industry. CNE outperforms 98.17% of its industry peers.
- CNE's Operating Margin has improved in the last couple of years.
- CNE has a better Gross Margin (91.15%) than 98.62% of its industry peers.
- CNE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.49% | ||
| PM (TTM) | 12.19% | ||
| GM | 91.15% |
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.
- Compared to 5 years ago, CNE has less shares outstanding
- The debt/assets ratio for CNE is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.83, we must say that CNE is in the distress zone and has some risk of bankruptcy.
- CNE has a Altman-Z score (0.83) which is comparable to the rest of the industry.
- CNE has a debt to FCF ratio of 223.00. This is a negative value and a sign of low solvency as CNE would need 223.00 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 223.00, CNE is in line with its industry, outperforming 54.13% of the companies in the same industry.
- A Debt/Equity ratio of 1.75 is on the high side and indicates that CNE has dependencies on debt financing.
- CNE's Debt to Equity ratio of 1.75 is on the low side compared to the rest of the industry. CNE is outperformed by 73.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 223.01 | ||
| Altman-Z | 0.83 |
ROIC/WACC1.59
WACC5.94%
2.3 Liquidity
- A Current Ratio of 0.59 indicates that CNE may have some problems paying its short term obligations.
- CNE has a Current ratio of 0.59. This is in the lower half of the industry: CNE underperforms 66.06% of its industry peers.
- CNE has a Quick Ratio of 0.59. This is a bad value and indicates that CNE is not financially healthy enough and could expect problems in meeting its short term obligations.
- CNE has a Quick ratio (0.59) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
- The earnings per share for CNE have decreased strongly by -138.10% in the last year.
- The Revenue for CNE has decreased by -10.20% in the past year. This is quite bad
- Measured over the past years, CNE shows a quite strong growth in Revenue. The Revenue has been growing by 9.20% on average per year.
EPS 1Y (TTM)-138.1%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%80.35%
Revenue 1Y (TTM)-10.2%
Revenue growth 3Y6.58%
Revenue growth 5Y9.2%
Sales Q2Q%-23.38%
3.2 Future
- CNE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 34.08% yearly.
- Based on estimates for the next years, CNE will show a decrease in Revenue. The Revenue will decrease by -3.93% on average per year.
EPS Next Y291.48%
EPS Next 2Y102.98%
EPS Next 3Y34.08%
EPS Next 5YN/A
Revenue Next Year-13.06%
Revenue Next 2Y-6.16%
Revenue Next 3Y-3.93%
Revenue Next 5YN/A
3.3 Evolution
- 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
- CNE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- A Price/Forward Earnings ratio of 0.54 indicates a rather cheap valuation of CNE.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CNE indicates a rather cheap valuation: CNE is cheaper than 100.00% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of CNE to the average of the S&P500 Index (25.83), we can say CNE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 0.54 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CNE is valued cheaper than 92.20% of the companies in the same industry.
- CNE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CNE is cheaper than 80.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.55 | ||
| EV/EBITDA | 3.28 |
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.
- CNE has a very decent profitability rating, which may justify a higher PE ratio.
- CNE's earnings are expected to grow with 34.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y102.98%
EPS Next 3Y34.08%
5. Dividend
5.1 Amount
- CNE has a Yearly Dividend Yield of 14.84%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.29, CNE pays a better dividend. On top of this CNE pays more dividend than 99.54% of the companies listed in the same industry.
- CNE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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
DP0%
EPS Next 2Y102.98%
EPS Next 3Y34.08%
CANACOL ENERGY LTD / CNE.CA FAQ
What is the fundamental rating for CNE stock?
ChartMill assigns a fundamental rating of 5 / 10 to CNE.CA.
What is the valuation status of CANACOL ENERGY LTD (CNE.CA) stock?
ChartMill assigns a valuation rating of 7 / 10 to CANACOL ENERGY LTD (CNE.CA). This can be considered as Undervalued.
How profitable is CANACOL ENERGY LTD (CNE.CA) stock?
CANACOL ENERGY LTD (CNE.CA) has a profitability rating of 7 / 10.
Can you provide the financial health for CNE stock?
The financial health rating of CANACOL ENERGY LTD (CNE.CA) is 2 / 10.
Is the dividend of CANACOL ENERGY LTD sustainable?
The dividend rating of CANACOL ENERGY LTD (CNE.CA) is 5 / 10 and the dividend payout ratio is 0%.