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

-0.7%

CNE

-0.5%

CA Oil and Gas

-0.4%

CA Market


1 Year Return

13.3%

CNE

-12.2%

CA Oil and Gas

0.9%

CA Market

Return vs Industry: CNE exceeded the Canadian Oil and Gas industry which returned -12.2% over the past year.

Return vs Market: CNE exceeded the Canadian Market which returned 0.9% over the past year.


Share holder returns

CNEIndustryMarket
7 Day-0.7%-0.5%-0.4%
30 Day-6.0%-2.7%-2.1%
90 Day-4.0%-4.7%-1.5%
1 Year13.3%13.3%-8.2%-12.2%4.4%0.9%
3 Year-7.2%-7.2%-14.4%-23.1%15.7%5.4%
5 Year9.8%9.8%-21.6%-33.5%26.1%7.9%

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

Undervalued: CNE (CA$4.35) is trading below our estimate of fair value (CA$19.15)

Significantly Undervalued: CNE is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: CNE is poor value based on its PE Ratio (145.9x) compared to the Oil and Gas industry average (8.3x).

PE vs Market: CNE is poor value based on its PE Ratio (145.9x) compared to the Canadian market (13.7x).


Price Based on Expected Growth

Low PEG Ratio: CNE is poor value based on its PEG Ratio (3.4x)


Price Based on Value of Assets

PB vs Industry: CNE is overvalued based on its PB Ratio (2.7x) compared to the CA Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is Canacol Energy expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

42.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: CNE's forecast earnings growth (42.9% per year) is above the savings rate (1.9%).

Earnings vs Market: CNE's earnings (42.9% per year) are forecast to grow faster than the Canadian market (13.3% per year).

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

Revenue vs Market: CNE's revenue (16.7% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: CNE's revenue (16.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: CNE's Return on Equity is forecast to be low in 3 years time (14.1%).


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

Earnings Trend: CNE's earnings have declined by -4.3% per year over the past 5 years.

Accelerating Growth: CNE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CNE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (62.2%).


Return on Equity

High ROE: CNE's Return on Equity (1.9%) is considered low.


Return on Assets

ROA vs Industry: CNE's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: CNE's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Canacol Energy's financial position?


Financial Position Analysis

Short Term Liabilities: CNE's short term assets (CA$106.4M) exceeds its short term liabilities (CA$68.3M)

Long Term Liabilities: CNE's short term assets (CA$106.4M) do not cover its long term liabilities (CA$429.2M)


Debt to Equity History and Analysis

Debt Level: CNE's debt to equity ratio (158.4%) is considered high

Reducing Debt: CNE's debt to equity ratio has increased from 58.9% to 158.4% over the past 5 years.

Debt Coverage: CNE's debt is well covered by operating cash flow (26.2%).

Interest Coverage: CNE's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet

Inventory Level: CNE has a high level of physical assets or inventory.

Debt Coverage by Assets: CNE's 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?

5.71%

Expected Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage5.3%forecastin3Years5.7%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

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

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

8.6yrs

Average management tenure


CEO

Charle Gamba (55yo)

11yrs

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

Compensation vs. Market: Charle's total compensation ($USD1.34M) is about average for companies of similar size in the Canadian market ($USD1.07M).

Compensation vs Earnings: Charle's compensation has been consistent with company performance over the past year.


Management Age and Tenure

8.6yrs

Average Tenure

55yo

Average Age

Experienced Management: CNE's management team is seasoned and experienced (8.6 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: CNE's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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: 9.3yrs
    • Compensation: US$752.62k
  • Jason Bednar (48yo)

    Chief Financial Officer

    • Tenure: 4.3yrs
    • Compensation: US$1.14m
  • Charle Gamba (55yo)

    President

    • Tenure: 11yrs
    • Compensation: US$1.77m
  • Luis Baena (58yo)

    Executive Vice President of Business Development

    • Tenure: 10.7yrs
    • Compensation: US$1.34m
  • Mark Teare

    Senior Vice President of Exploration

    • Tenure: 10.8yrs
    • Compensation: US$760.99k
  • Ravi Sharma

    Chief Operating Officer

    • Tenure: 4yrs
    • Compensation: US$1.34m
  • Anthony Zaidi

    VP of Business Development

    • Tenure: 7.9yrs
    • Compensation: US$1.31m
  • Thomas Lutz

    President of Canacol Energy Colombia

    • Tenure: 3.1yrs
  • Carolina Orozco

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Oswaldo Cisneros (78yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$128.69k
  • Mike Hibberd (64yo)

    Independent Chairman of the Board

    • Tenure: 10.7yrs
    • Compensation: US$221.45k
  • David Winter (62yo)

    Independent Director

    • Tenure: 10.7yrs
    • Compensation: US$146.12k
  • Greg Elliott (61yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$133.17k
  • Charle Gamba (55yo)

    President

    • Tenure: 11yrs
    • Compensation: US$1.77m
  • Alvaro Barrera (87yo)

    Member of Advisory Board

    • Tenure: 0yrs
    • Compensation: US$100.20k
  • Francisco Diaz Salazar (57yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$137.69k
  • Gonzalo Fernández-Tinoco (56yo)

    Independent Director

    • Tenure: 0.9yrs
    • 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$771.699m
  • 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 Analysis2019/10/14 02:16
End of Day Share Price2019/10/11 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.

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