Cardinal Energy Ltd. engages in the acquisition, exploration, and production of low decline light, medium, and heavy quality oil, and natural gas in Western Canada.
Cardinal Energy Ltd. engages in the acquisition, exploration, and production of low decline light, medium, and heavy quality oil, and natural gas in Western Canada. It has operations in the provinces of Alberta and Saskatchewan. As of February 24, 2022, the company had total proved plus probable oil and gas reserves are 110,391 thousand barrels of oil equivalent.
Cardinal Energy Fundamentals Summary
How do Cardinal Energy's earnings and revenue compare to its market cap?
Is CJ undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6
Valuation Score 3/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for CJ?
Other financial metrics that can be useful for relative valuation.
The above table shows the n/a ratio for CJ. This is calculated by dividing CJ's market cap by their current
preferred multiple.
What is CJ's n/a Ratio?
n/a Ratio
0x
n/a
n/a
Market Cap
CA$1.14b
CJ key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Price-To-Earnings vs Industry: CJ is good value based on its Price-To-Earnings Ratio (3.1x) compared to the Canadian Oil and Gas industry average (7.6x)
Price to Earnings Ratio vs Fair Ratio
What is CJ's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
CJ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio
3.1x
Fair PE Ratio
n/a
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CJ's Price-To-Earnings Fair Ratio for valuation analysis.
Share Price vs Fair Value
What is the Fair Price of CJ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: CJ (CA$7.08) is trading below our estimate of fair value (CA$16.31)
Significantly Below Fair Value: CJ is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate CJ's PEG Ratio to determine if it is good value.
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Future Growth
How is Cardinal Energy forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Future Growth Score
0/6
Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
5.2%
Forecasted Energy industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Cardinal Energy has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
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Examine whether Cardinal Energy is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
Cardinal Energy competitive advantages and company strategy can generally be found in its financial reports archived here.
Past Performance
How has Cardinal Energy performed over the past 5 years?
Past Performance Score
5/6
Past Performance Score 5/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
18.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CJ has a high level of non-cash earnings.
Growing Profit Margin: CJ's current net profit margins (84.3%) are higher than last year (29%).
Past Earnings Growth Analysis
Earnings Trend: CJ has become profitable over the past 5 years, growing earnings by 18.8% per year.
Accelerating Growth: CJ's earnings growth over the past year (494.6%) exceeds its 5-year average (18.8% per year).
Earnings vs Industry: CJ earnings growth over the past year (494.6%) exceeded the Oil and Gas industry 171.2%.
Return on Equity
High ROE: CJ's Return on Equity (48.2%) is considered outstanding.
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Financial Health
How is Cardinal Energy's financial position?
Financial Health Score
4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: CJ's short term assets (CA$89.7M) do not cover its short term liabilities (CA$95.2M).
Long Term Liabilities: CJ's short term assets (CA$89.7M) do not cover its long term liabilities (CA$263.7M).
Debt to Equity History and Analysis
Debt Level: CJ's net debt to equity ratio (18.7%) is considered satisfactory.
Reducing Debt: CJ's debt to equity ratio has reduced from 19.4% to 19.2% over the past 5 years.
Debt Coverage: CJ's debt is well covered by operating cash flow (110.5%).
Interest Coverage: CJ's interest payments on its debt are well covered by EBIT (27.9x coverage).
Balance Sheet
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Dividend
What is Cardinal Energy current dividend yield, its reliability and sustainability?
Dividend Score
2/6
Dividend Score 2/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
8.47%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: CJ's dividend (8.47%) is higher than the bottom 25% of dividend payers in the Canadian market (2.08%).
High Dividend: CJ's dividend (8.47%) is in the top 25% of dividend payers in the Canadian market (5.35%)
Stability and Growth of Payments
Stable Dividend: CJ has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: CJ has only been paying a dividend for 8 years, and since then payments have fallen.
Earnings Payout to Shareholders
Earnings Coverage: Unable to calculate sustainability of dividends as CJ has not reported any payouts.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (121.6%), CJ's dividend payments are not well covered by cash flows.
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Management
How experienced are the management team and are they aligned to shareholders interests?
4.6yrs
Average management tenure
CEO
M. Ratushny (56 yo)
9.92yrs
Tenure
CA$1,906,739
Compensation
Mr. M. Scott Ratushny has been the Chief Executive Officer of Cardinal Energy Ltd, since May 11, 2015 and served as its President since November 9, 2017 until February 2019. Mr. Ratushny served as the Chie...
CEO Compensation Analysis
Compensation vs Market: M.'s total compensation ($USD1.48M) is about average for companies of similar size in the Canadian market ($USD1.59M).
Compensation vs Earnings: M.'s compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: CJ's management team is considered experienced (4.6 years average tenure).
Board Members
Experienced Board: CJ's board of directors are considered experienced (9.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CJ insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.2%.
Top Shareholders
Company Information
Cardinal Energy Ltd.'s employee growth, exchange listings and data sources
All financial data provided by Standard & Poor's Capital IQ.
Data
Last Updated (UTC time)
Company Analysis
2022/06/24 00:00
End of Day Share Price
2022/06/24 00:00
Earnings
2022/03/31
Annual Earnings
2021/12/31
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.