TSX:CNE

Stock Analysis Report

Canacol Energy

Executive Summary

Canacol Energy Ltd. primarily explores for, develops, and produces petroleum and natural gas in Colombia.

Snowflake

Fundamentals

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.9%

TSX:CNE

-0.5%

CA Oil and Gas

-0.6%

CA Market


1 Year Return

13.2%

TSX:CNE

-21.8%

CA Oil and Gas

-4.9%

CA Market

CNE outperformed the Oil and Gas industry which returned -20.7% over the past year.

CNE outperformed the Market in Canada which returned -4.8% over the past year.


Share holder returns

CNEIndustryMarket
7 Day0.9%-0.5%-0.6%
30 Day3.1%-6.5%-2.6%
90 Day17.4%-9.7%-2.0%
1 Year13.2%13.2%-18.4%-21.8%-1.5%-4.9%
3 Year12.1%12.1%-14.5%-22.9%14.0%3.9%
5 Year-27.1%-27.1%-34.9%-44.3%12.3%-3.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Canacol Energy undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Canacol Energy's share price is below the future cash flow value, and at a moderate discount (> 20%).

Canacol Energy's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Canacol Energy is overvalued based on earnings compared to the CA Oil and Gas industry average.

Canacol Energy is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

Canacol Energy is poor value based on expected growth next year.


Price Based on Value of Assets

Canacol Energy is overvalued based on assets compared to the CA Oil and Gas industry average.


Next Steps

Future Growth

How is Canacol Energy expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

38.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Canacol Energy's revenue is expected to grow by 13.7% yearly, however this is not considered high growth (20% yearly).

Canacol Energy's earnings are expected to grow significantly at over 20% yearly.

Canacol Energy's revenue growth is expected to exceed the Canada market average.

Canacol Energy's earnings growth is expected to exceed the Canada market average.

Canacol Energy's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Canacol Energy is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Canacol Energy performed over the past 5 years?

-4.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Canacol Energy's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Canacol Energy has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Canacol Energy has become profitable in the last year making it difficult to compare the CA Oil and Gas industry average.


Return on Equity

Canacol Energy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Canacol Energy used its assets less efficiently than the CA Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Canacol Energy has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Canacol Energy's financial position?


Financial Position Analysis

Canacol Energy is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Canacol Energy's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Canacol Energy's level of debt (158.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (58.9% vs 158.4% today).

Debt is well covered by operating cash flow (26.2%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.7x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

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

2.65%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Canacol Energy's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Canacol Energy's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Canacol Energy has not reported any payouts.

Unable to verify if Canacol Energy's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Canacol Energy has not reported any payouts.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.2x coverage).


Next Steps

Management

What is the CEO of Canacol Energy's salary, the management and board of directors tenure and is there insider trading?

8.5yrs

Average management tenure


CEO

Charle Gamba (55yo)

10.8yrs

Tenure

US$1,769,833

Compensation

Dr. Charle A. Gamba, B.Sc., MSc., Ph.D. has been Chief Executive Officer and President of Canacol Energy Ltd. since October 30, 2008. Dr. Gamba founded Canacol Energy Ltd. in 2008. He served a variety of t ...


CEO Compensation Analysis

Charle's remuneration is about average for companies of similar size in Canada.

Charle's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

8.5yrs

Average Tenure

55yo

Average Age

The average tenure for the Canacol Energy management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.7yrs

Average Tenure

61.5yo

Average Age

The tenure for the Canacol Energy board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$20,09230 Apr 19
David Winter
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$4.05
BuyUS$21,56123 Apr 19
Kevin Flick
EntityIndividual
Role
Head of Investor Relations
Vice President of Capital Markets & Investor Relations
Shares5,200
Max PriceUS$4.15
BuyUS$20,06130 Nov 18
Kevin Flick
EntityIndividual
Role
Head of Investor Relations
Vice President of Capital Markets & Investor Relations
Shares5,000
Max PriceUS$4.01
BuyUS$90,32605 Nov 18
Kevin Flick
EntityIndividual
Role
Head of Investor Relations
Vice President of Capital Markets & Investor Relations
Shares24,600
Max PriceUS$3.67

Ownership Breakdown


Management Team

  • Kevin Flick

    Vice President of Capital Markets & Investor Relations

    • Tenure: 9.2yrs
    • Compensation: US$752.62k
  • Jason Bednar (48yo)

    Chief Financial Officer

    • Tenure: 4.2yrs
    • Compensation: US$1.14m
  • Charle Gamba (55yo)

    President

    • Tenure: 10.8yrs
    • Compensation: US$1.77m
  • Luis Baena (58yo)

    Executive Vice President of Business Development

    • Tenure: 10.5yrs
    • Compensation: US$1.34m
  • Mark Teare

    Senior Vice President of Exploration

    • Tenure: 10.6yrs
    • Compensation: US$760.99k
  • Ravi Sharma

    Chief Operating Officer

    • Tenure: 3.8yrs
    • Compensation: US$1.34m
  • Anthony Zaidi

    VP of Business Development

    • Tenure: 7.8yrs
    • Compensation: US$1.31m
  • Thomas Lutz

    President of Canacol Energy Colombia

    • Tenure: 2.9yrs
  • Carolina Orozco

    Director of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Oswaldo Cisneros (78yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$128.69k
  • Mike Hibberd (64yo)

    Chairman of the Board

    • Tenure: 10.5yrs
    • Compensation: US$221.45k
  • David Winter (62yo)

    Independent Director

    • Tenure: 10.5yrs
    • Compensation: US$146.12k
  • Greg Elliott (61yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$133.17k
  • Charle Gamba (55yo)

    President

    • Tenure: 10.8yrs
    • Compensation: US$1.77m
  • Alvaro Barrera (87yo)

    Member of Advisory Board

    • Tenure: 0.0yrs
    • Compensation: US$100.20k
  • Francisco Diaz Salazar (57yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$137.69k
  • Gonzalo Fernández-Tinoco (56yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$8.31k

Company Information

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


Key Information

  • Name: Canacol Energy Ltd
  • Ticker: CNE
  • Exchange: TSX
  • Founded:
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$839.112m
  • Shares outstanding: 177.40m
  • Website: https://www.canacolenergy.com

Number of Employees


Location

  • Canacol Energy Ltd
  • 2650, 585 - 8th Avenue SW
  • Calgary
  • Alberta
  • T2P 1G1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CNNE.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDApr 1989
3B6ADB (Deutsche Boerse AG)YesCommon SharesDEEURApr 1989
CNETSX (The Toronto Stock Exchange)YesCommon SharesCACADApr 1989
CNECBVC (Bolsa de Valores de Colombia)YesCommon SharesCOCOPApr 1989
CNE NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNApr 1989

Biography

Canacol Energy Ltd. primarily explores for, develops, and produces petroleum and natural gas in Colombia. As of December 31, 2018, it has a total proved plus probable reserves of 98,050 one thousand barrel ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 00:26
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.