TSX:CJ

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Cardinal Energy

Executive Summary

Cardinal Energy Ltd. engages in the acquisition, exploration, and production of oil and natural gas in the provinces of Alberta and Saskatchewan, Canada.


Snowflake Analysis

Fair value with imperfect balance sheet.

Share Price & News

How has Cardinal Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CJ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.4%

CJ

2.6%

CA Oil and Gas

2.2%

CA Market


1 Year Return

-78.8%

CJ

-24.6%

CA Oil and Gas

-10.1%

CA Market

Return vs Industry: CJ underperformed the Canadian Oil and Gas industry which returned -26.2% over the past year.

Return vs Market: CJ underperformed the Canadian Market which returned -11.4% over the past year.


Shareholder returns

CJIndustryMarket
7 Day7.4%2.6%2.2%
30 Day-3.8%6.1%5.8%
90 Day-71.2%-15.4%-5.3%
1 Year-77.5%-78.8%-20.5%-24.6%-7.1%-10.1%
3 Year-87.2%-89.7%-25.1%-34.0%1.8%-7.7%
5 Year-95.1%-96.5%-29.0%-40.7%19.1%1.5%

Price Volatility Vs. Market

How volatile is Cardinal Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cardinal Energy undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CJ (CA$0.51) is trading below our estimate of fair value (CA$2.47)

Significantly Below Fair Value: CJ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CJ is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: CJ is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CJ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CJ is good value based on its PB Ratio (0.2x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is Cardinal Energy forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

7.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CJ's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if CJ's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CJ's revenue (7.6% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: CJ's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CJ's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Cardinal Energy performed over the past 5 years?

-10.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CJ is currently unprofitable.

Growing Profit Margin: CJ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CJ is unprofitable, and losses have increased over the past 5 years at a rate of -10.7% per year.

Accelerating Growth: Unable to compare CJ's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CJ is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-16.2%).


Return on Equity

High ROE: CJ has a negative Return on Equity (-167.06%), as it is currently unprofitable.


Next Steps

Financial Health

How is Cardinal Energy's financial position?


Financial Position Analysis

Short Term Liabilities: CJ's short term assets (CA$43.8M) do not cover its short term liabilities (CA$115.8M).

Long Term Liabilities: CJ's short term assets (CA$43.8M) do not cover its long term liabilities (CA$307.0M).


Debt to Equity History and Analysis

Debt Level: CJ's debt to equity ratio (84.6%) is considered high.

Reducing Debt: CJ's debt to equity ratio has increased from 5.6% to 84.6% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable CJ has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CJ is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 13.1% per year.


Next Steps

Dividend

What is Cardinal Energy's current dividend yield, its reliability and sustainability?

2.26%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CJ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CJ's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CJ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CJ's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CJ is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CJ's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

M. Ratushny (54yo)

7.92yrs

Tenure

CA$1,786,707

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 ($USD1.32M) is above average for companies of similar size in the Canadian market ($USD165.83K).

Compensation vs Earnings: M.'s compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
M. Ratushny
Chairman & CEO7.92yrsCA$1.79m1.63% CA$939.6k
Shawn Van Spankeren
Chief Financial Officer2.42yrsCA$1.05mno data
Dale Orton
Chief Operating Officer2.58yrsCA$976.08kno data
Robert Ernest Wollmann
Senior Vice President of Exploration2.58yrsCA$1.02mno data
Shannon Gangl
Corporate Secretaryno datano datano data

2.6yrs

Average Tenure

50yo

Average Age

Experienced Management: CJ's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
M. Ratushny
Chairman & CEO7.92yrsCA$1.79m1.63% CA$939.6k
John Brussa
Independent Director7.92yrsCA$193.45k1.18% CA$682.1k
David Johnson
Independent Director7.92yrsCA$193.45k0.38% CA$217.5k
Gregory Tisdale
Independent Director6.42yrsCA$197.45k0.070% CA$40.3k
Stephanie Sterling
Lead Independent Directorno dataCA$185.45k0.040% CA$23.2k

7.9yrs

Average Tenure

54yo

Average Age

Experienced Board: CJ's board of directors are considered experienced (7.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CJ insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cardinal Energy Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cardinal Energy Ltd.
  • Ticker: CJ
  • Exchange: TSX
  • Founded: 2010
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$57.816m
  • Shares outstanding: 113.36m
  • Website: https://www.cardinalenergy.ca

Number of Employees


Location

  • Cardinal Energy Ltd.
  • 400-3rd Avenue SW
  • Suite 600
  • Calgary
  • Alberta
  • T2P 4H2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CJTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 2013
C0YDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2013
CRLF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2013

Biography

Cardinal Energy Ltd. engages in the acquisition, exploration, and production of oil and natural gas in the provinces of Alberta and Saskatchewan, Canada. Its principal properties are located in Bantry, Mitsue, House Mountain, Grande Prairie, Wainwright, and Midale. The company was incorporated in 2010 and is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 04:25
End of Day Share Price2020/06/02 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.