CRESCENT POINT ENERGY CORP (CPG.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CPG - CA22576C1014 - Common Stock
7.58 CAD
+0.05 (+0.66%)
We assign a fundamental rating of 5 out of 10 to CPG. CPG was compared to 206 industry peers in the Oil, Gas & Consumable Fuels industry. While CPG is still in line with the averages on profitability rating, there are concerns on its financial health. CPG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year CPG has reported negative net income.
- CPG had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: CPG reported negative net income in multiple years.
- In the past 5 years CPG always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.32%, CPG is in line with its industry, outperforming 48.84% of the companies in the same industry.
- With a Return On Equity value of 2.49%, CPG perfoms like the industry average, outperforming 49.77% of the companies in the same industry.
- The Return On Invested Capital of CPG (9.92%) is better than 89.30% of its industry peers.
- CPG had an Average Return On Invested Capital over the past 3 years of 11.15%. This is above the industry average of 6.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.32% | ||
| ROE | 2.49% | ||
| ROIC | 9.92% |
ROA(3y)15.29%
ROA(5y)-0.46%
ROE(3y)24.96%
ROE(5y)-6.74%
ROIC(3y)11.15%
ROIC(5y)7.73%
1.3 Margins
- Looking at the Profit Margin, with a value of 3.77%, CPG is in line with its industry, outperforming 51.63% of the companies in the same industry.
- The Operating Margin of CPG (33.75%) is better than 82.33% of its industry peers.
- In the last couple of years the Operating Margin of CPG has grown nicely.
- With an excellent Gross Margin value of 73.41%, CPG belongs to the best of the industry, outperforming 86.98% of the companies in the same industry.
- CPG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.75% | ||
| PM (TTM) | 3.77% | ||
| GM | 73.41% |
OM growth 3Y1648.67%
OM growth 5Y17.27%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.26%
GM growth 5Y0.04%
2. Health
2.1 Basic Checks
- CPG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, CPG has more shares outstanding
- The debt/assets ratio for CPG is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.00, we must say that CPG is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.00, CPG is doing worse than 69.77% of the companies in the same industry.
- CPG has a Debt/Equity ratio of 0.52. This is a neutral value indicating CPG is somewhat dependend on debt financing.
- CPG has a Debt to Equity ratio of 0.52. This is in the lower half of the industry: CPG underperforms 60.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0 |
ROIC/WACC1.5
WACC6.61%
2.3 Liquidity
- A Current Ratio of 1.03 indicates that CPG should not have too much problems paying its short term obligations.
- The Current ratio of CPG (1.03) is comparable to the rest of the industry.
- A Quick Ratio of 1.03 indicates that CPG should not have too much problems paying its short term obligations.
- CPG's Quick ratio of 1.03 is fine compared to the rest of the industry. CPG outperforms 60.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
- CPG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -118.00%.
- CPG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.77% yearly.
- The Revenue has grown by 10.17% in the past year. This is quite good.
- CPG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.80% yearly.
EPS 1Y (TTM)-118%
EPS 3YN/A
EPS 5Y39.77%
EPS Q2Q%-269.23%
Revenue 1Y (TTM)10.17%
Revenue growth 3Y28.94%
Revenue growth 5Y-0.8%
Sales Q2Q%-3.96%
3.2 Future
- The Earnings Per Share is expected to grow by 32.45% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 10.38% on average over the next years. This is quite good.
EPS Next Y67.7%
EPS Next 2Y39.54%
EPS Next 3Y32.45%
EPS Next 5YN/A
Revenue Next Year38.64%
Revenue Next 2Y22.84%
Revenue Next 3Y15.26%
Revenue Next 5Y10.38%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for CPG. In the last year negative earnings were reported.
- CPG is valuated cheaply with a Price/Forward Earnings ratio of 4.05.
- 89.30% of the companies in the same industry are more expensive than CPG, based on the Price/Forward Earnings ratio.
- CPG is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.05 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CPG is valued cheaper than 86.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.23 |
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.
- The decent profitability rating of CPG may justify a higher PE ratio.
- A more expensive valuation may be justified as CPG's earnings are expected to grow with 32.45% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y39.54%
EPS Next 3Y32.45%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.92%, CPG has a reasonable but not impressive dividend return.
- The stock price of CPG dropped by -24.20% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- CPG's Dividend Yield is a higher than the industry average which is at 3.29.
- Compared to an average S&P500 Dividend Yield of 1.81, CPG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
5.2 History
- The dividend of CPG decreases each year by -0.01%.
- CPG has been paying a dividend for at least 10 years, so it has a reliable track record.
- CPG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-0.01%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- 167.78% of the earnings are spent on dividend by CPG. This is not a sustainable payout ratio.
DP167.78%
EPS Next 2Y39.54%
EPS Next 3Y32.45%
CRESCENT POINT ENERGY CORP / CPG.CA FAQ
What is the ChartMill fundamental rating of CRESCENT POINT ENERGY CORP (CPG.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to CPG.CA.
What is the valuation status of CRESCENT POINT ENERGY CORP (CPG.CA) stock?
ChartMill assigns a valuation rating of 6 / 10 to CRESCENT POINT ENERGY CORP (CPG.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for CRESCENT POINT ENERGY CORP?
CRESCENT POINT ENERGY CORP (CPG.CA) has a profitability rating of 6 / 10.
What is the financial health of CRESCENT POINT ENERGY CORP (CPG.CA) stock?
The financial health rating of CRESCENT POINT ENERGY CORP (CPG.CA) is 2 / 10.