CANACOL ENERGY LTD (CNE.CA) Stock Fundamental Analysis
TSX:CNE - Toronto Stock Exchange - CA1348083025 - Common Stock - Currency: CAD
Overall CNE gets a fundamental rating of 4 out of 10. We evaluated CNE against 221 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of CNE while its profitability can be described as average. CNE has a valuation in line with the averages, but it does not seem to be growing. CNE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CNE was profitable.
CNE had a positive operating cash flow in the past year.
CNE had positive earnings in 4 of the past 5 years.
CNE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CNE has a Return On Assets (1.84%) which is in line with its industry peers.
CNE has a Return On Equity (6.52%) which is in line with its industry peers.
The Return On Invested Capital of CNE (11.20%) is better than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.84% | ||
| ROE | 6.52% | ||
| ROIC | 11.2% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of CNE (6.36%) is comparable to the rest of the industry.
With an excellent Operating Margin value of 48.91%, CNE belongs to the best of the industry, outperforming 97.74% of the companies in the same industry.
CNE's Operating Margin has improved in the last couple of years.
CNE has a better Gross Margin (90.89%) than 97.29% of its industry peers.
CNE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.91% | ||
| PM (TTM) | 6.36% | ||
| GM | 90.89% |
OM growth 3Y3.47%
OM growth 5Y11.71%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.04%
GM growth 5Y0.83%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CNE is destroying value.
There is no outstanding debt for CNE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
CNE has an Altman-Z score of 1.10. This is a bad value and indicates that CNE is not financially healthy and even has some risk of bankruptcy.
CNE's Altman-Z score of 1.10 is fine compared to the rest of the industry. CNE outperforms 63.35% of its industry peers.
CNE has a Debt/Equity ratio of 2.08. This is a high value indicating a heavy dependency on external financing.
CNE has a Debt to Equity ratio of 2.08. This is amonst the worse of the industry: CNE underperforms 80.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.1 |
ROIC/WACC0.9
WACC12.44%
2.3 Liquidity
CNE has a Current Ratio of 1.50. This is a normal value and indicates that CNE is financially healthy and should not expect problems in meeting its short term obligations.
CNE has a Current ratio of 1.50. This is in the better half of the industry: CNE outperforms 74.66% of its industry peers.
A Quick Ratio of 1.50 indicates that CNE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.50, CNE is in the better half of the industry, outperforming 76.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The earnings per share for CNE have decreased strongly by -57.86% in the last year.
The Revenue has grown by 13.72% in the past year. This is quite good.
The Revenue has been growing slightly by 7.26% on average over the past years.
EPS 1Y (TTM)-57.86%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1600%
Revenue 1Y (TTM)13.72%
Revenue growth 3Y4.24%
Revenue growth 5Y7.26%
Sales Q2Q%23.39%
3.2 Future
The Earnings Per Share is expected to decrease by -2.40% on average over the next years.
The Revenue is expected to grow by 0.38% on average over the next years.
EPS Next Y-58.32%
EPS Next 2Y0.96%
EPS Next 3Y-2.4%
EPS Next 5YN/A
Revenue Next Year15.96%
Revenue Next 2Y2.34%
Revenue Next 3Y0.38%
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
Based on the Price/Earnings ratio of 4.03, the valuation of CNE can be described as very cheap.
CNE's Price/Earnings ratio is rather cheap when compared to the industry. CNE is cheaper than 95.48% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, CNE is valued rather cheaply.
A Price/Forward Earnings ratio of 1.05 indicates a rather cheap valuation of CNE.
Based on the Price/Forward Earnings ratio, CNE is valued cheaply inside the industry as 98.64% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, CNE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.03 | ||
| Fwd PE | 1.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNE is valued cheaper than 90.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.97 |
4.3 Compensation for Growth
CNE has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as CNE's earnings are expected to decrease with -2.40% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.96%
EPS Next 3Y-2.4%
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 6.64, CNE pays a better dividend. On top of this CNE pays more dividend than 99.55% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, CNE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.84% |
5.2 History
On average, the dividend of CNE grows each year by 56.51%, which is quite nice.
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)56.51%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
58.68% of the earnings are spent on dividend by CNE. This is a bit on the high side, but may be sustainable.
CNE's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP58.68%
EPS Next 2Y0.96%
EPS Next 3Y-2.4%
TSX:CNE (3/7/2025, 7:00:00 PM)
3.87
+0.04 (+1.04%)
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 Cap132.04M
Analysts47.27
Price Target4.76 (23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.84% |
Yearly Dividend1.15
Dividend Growth(5Y)56.51%
DP58.68%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-118.18%
Min EPS beat(2)-173.96%
Max EPS beat(2)-62.4%
EPS beat(4)1
Avg EPS beat(4)-63.04%
Min EPS beat(4)-173.96%
Max EPS beat(4)69.18%
EPS beat(8)2
Avg EPS beat(8)4.43%
EPS beat(12)3
Avg EPS beat(12)-18.86%
EPS beat(16)3
Avg EPS beat(16)-36.04%
Revenue beat(2)2
Avg Revenue beat(2)6.44%
Min Revenue beat(2)4.01%
Max Revenue beat(2)8.88%
Revenue beat(4)4
Avg Revenue beat(4)6.23%
Min Revenue beat(4)4.01%
Max Revenue beat(4)8.88%
Revenue beat(8)6
Avg Revenue beat(8)-8.53%
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%
PT rev (3m)-5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.16%
EPS NY rev (1m)4.7%
EPS NY rev (3m)-12.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)1.86%
Revenue NY rev (3m)1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.03 | ||
| Fwd PE | 1.05 | ||
| P/S | 0.26 | ||
| P/FCF | N/A | ||
| P/OCF | 0.62 | ||
| P/B | 0.27 | ||
| P/tB | 0.27 | ||
| EV/EBITDA | 2.97 |
EPS(TTM)0.96
EY24.81%
EPS(NY)3.68
Fwd EY95.17%
FCF(TTM)-0.75
FCFYN/A
OCF(TTM)6.23
OCFY160.86%
SpS14.93
BVpS14.56
TBVpS14.56
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.84% | ||
| ROE | 6.52% | ||
| ROCE | 15.55% | ||
| ROIC | 11.2% | ||
| ROICexc | 11.91% | ||
| ROICexgc | 11.91% | ||
| OM | 48.91% | ||
| PM (TTM) | 6.36% | ||
| GM | 90.89% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y3.47%
OM growth 5Y11.71%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.04%
GM growth 5Y0.83%
F-Score5
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.86 | ||
| Cap/Depr | 210.61% | ||
| Cap/Sales | 46.73% | ||
| Interest Coverage | 3.55 | ||
| Cash Conversion | 58.65% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 1.1 |
F-Score5
WACC12.44%
ROIC/WACC0.9
Cap/Depr(3y)224.09%
Cap/Depr(5y)198.94%
Cap/Sales(3y)49.87%
Cap/Sales(5y)44.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-57.86%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1600%
EPS Next Y-58.32%
EPS Next 2Y0.96%
EPS Next 3Y-2.4%
EPS Next 5YN/A
Revenue 1Y (TTM)13.72%
Revenue growth 3Y4.24%
Revenue growth 5Y7.26%
Sales Q2Q%23.39%
Revenue Next Year15.96%
Revenue Next 2Y2.34%
Revenue Next 3Y0.38%
Revenue Next 5YN/A
EBIT growth 1Y21.18%
EBIT growth 3Y7.86%
EBIT growth 5Y19.82%
EBIT Next Year78.31%
EBIT Next 3Y20.04%
EBIT Next 5YN/A
FCF growth 1Y-166.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-9.83%
OCF growth 3Y-14.46%
OCF growth 5Y0.28%