TSX:CPG

Stock Analysis Report

Crescent Point Energy

Executive Summary

Crescent Point Energy Corp. explores, develops, and produces light and medium crude oil and natural gas reserves in Western Canada and the United States.

Snowflake

Fundamentals

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.7%

CPG

-0.2%

CA Oil and Gas

0.2%

CA Market


1 Year Return

11.2%

CPG

-0.7%

CA Oil and Gas

8.3%

CA Market

Return vs Industry: CPG exceeded the Canadian Oil and Gas industry which returned -0.7% over the past year.

Return vs Market: CPG exceeded the Canadian Market which returned 8.3% over the past year.


Shareholder returns

CPGIndustryMarket
7 Day-1.7%-0.2%0.2%
30 Day-2.6%4.3%3.0%
90 Day28.4%10.0%5.0%
1 Year13.7%11.2%3.8%-0.7%11.9%8.3%
3 Year-65.6%-68.6%-12.2%-21.2%16.8%6.3%
5 Year-79.2%-83.2%-12.2%-25.7%29.5%10.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

46.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CPG (CA$5.15) is trading below our estimate of fair value (CA$9.64)

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


Price To Earnings Ratio

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

PE vs Market: CPG 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 CPG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CPG is good value based on its PB Ratio (0.4x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is Crescent Point Energy forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

76.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: CPG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CPG's is expected to become profitable in the next 3 years.

Revenue vs Market: CPG's revenue (6% per year) is forecast to grow faster than the Canadian market (4.8% per year).

High Growth Revenue: CPG's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CPG's Return on Equity is forecast to be low in 3 years time (1.7%).


Next Steps

Past Performance

How has Crescent Point Energy performed over the past 5 years?

-50.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPG has high quality earnings.

Growing Profit Margin: CPG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CPG is unprofitable, and losses have increased over the past 5 years at a rate of -50.3% per year.

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

Earnings vs Industry: CPG is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (16.5%).


Return on Equity

High ROE: CPG has a negative Return on Equity (-39.01%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Crescent Point Energy's financial position?


Financial Position Analysis

Short Term Liabilities: CPG's short term assets (CA$1.6B) exceeds its short term liabilities (CA$992.6M)

Long Term Liabilities: CPG's short term assets (CA$1.6B) do not cover its long term liabilities (4.7B)


Debt to Equity History and Analysis

Debt Level: CPG's debt to equity ratio (56%) is considered high.

Reducing Debt: CPG's debt to equity ratio has increased from 25.4% to 56% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: CPG's debt is not covered by short term assets (assets are 0.5x debt).


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 CPG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CPG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 46.3% per year.


Next Steps

Dividend

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

0.78%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Crescent Point Energy before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company0.8%marketbottom25%2.0%markettop25%5.7%industryaverage4.7%forecastin3Years0.8%

Current dividend yield vs market & industry

Notable Dividend: CPG's dividend (0.78%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.96%).

High Dividend: CPG's dividend (0.78%) is low compared to the top 25% of dividend payers in the Canadian market (5.73%).


Stability and Growth of Payments

Stable Dividend: CPG is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: CPG is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CPG'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 Crescent Point Energy's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Craig Bryksa (42yo)

1.5yrs

Tenure

CA$2,567,449

Compensation

Mr. Craig Bryksa has been President and Chief Executive Officer at Crescent Point Energy Corp since September 05, 2018 and has been its Director since May 2018. He served as an Interim President and CEO at ...


CEO Compensation Analysis

Compensation vs Market: Craig's total compensation ($USD1.93M) is about average for companies of similar size in the Canadian market ($USD2.22M).

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


Management Age and Tenure

1.5yrs

Average Tenure

Experienced Management: CPG's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

59yo

Average Age

Experienced Board: CPG's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


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

BuyCA$3,90012 Mar 19
Mike Jackson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceCA$3.90
BuyCA$10,00113 Feb 19
Andrew Tuttle
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resources & Corporate Services
Shares2,950
Max PriceCA$3.39
BuyCA$6,90313 Feb 19
Lynne Murfin Professional Corporation
EntityCompany
Shares2,050
Max PriceCA$3.39
BuyCA$1,85505 Feb 19
Mike Jackson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceCA$3.71
BuyCA$4,10028 Jan 19
Mike Jackson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceCA$4.10
BuyCA$20,55024 Jan 19
Brad Borggard
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Corporate Planning & Capital Markets
Shares5,000
Max PriceCA$4.11
BuyCA$48,84024 Jan 19
Craig Bryksa
EntityIndividual
Role
Chief Executive Officer
President
Shares12,000
Max PriceCA$4.07
BuyCA$4,65018 Jan 19
Mike Jackson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceCA$4.65
BuyCA$20,63430 Nov 18
Andrew Tuttle
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resources & Corporate Services
Shares5,200
Max PriceCA$4.04
BuyCA$3,99029 Nov 18
Mike Jackson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceCA$3.99

Ownership Breakdown

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


Management Team

  • Andrew Tuttle

    Senior Vice President of Human Resources & Corporate Services

    • Tenure: 1.8yrs
  • Ken Lamont (60yo)

    Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: CA$2.21m
  • Mark Eade

    Senior VP

    • Tenure: 4.2yrs
  • Brad Borggard

    Senior Vice President of Corporate Planning & Capital Markets

    • Tenure: 1.4yrs
    • Compensation: CA$1.92m
  • Shant Madian

    Vice President of Investor Relations & Corporate Communications

    • Tenure: 0yrs
  • Derek Christie

    Senior Vice President of Exploration & Corporate Development

    • Tenure: 0.7yrs
    • Compensation: CA$2.07m
  • Ryan Chad Gritzfeldt

    Chief Operating Officer

    • Tenure: 1.4yrs
    • Compensation: CA$2.04m
  • Craig Bryksa (42yo)

    President

    • Tenure: 1.5yrs
    • Compensation: CA$2.57m

Board Members

  • Mike Jackson (57yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: CA$279.24k
  • Francois Langlois (59yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: CA$170.66k
  • Barb Munroe (55yo)

    Chairman of the Board

    • Tenure: 0.08yrs
    • Compensation: CA$244.72k
  • Jim Craddock (60yo)

    Additional Independent Director

    • Tenure: 0.4yrs
  • Laura Cillis (60yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: CA$236.75k
  • Jennifer Koury (59yo)

    Additional Independent Director

    • Tenure: 0.4yrs
  • Ted Goldthorpe (42yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: CA$254.74k
  • Craig Bryksa (42yo)

    President

    • Tenure: 1.5yrs
    • Compensation: CA$2.57m
  • John Dielwart (66yo)

    Independent Director

    • Tenure: 0.7yrs

Company Information

Crescent Point Energy Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Crescent Point Energy Corp.
  • Ticker: CPG
  • Exchange: TSX
  • Founded:
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$2.785b
  • Shares outstanding: 540.78m
  • Website: https://www.crescentpointenergy.com

Number of Employees


Location

  • Crescent Point Energy Corp.
  • 585–8th Avenue SW
  • Suite 2000
  • Calgary
  • Alberta
  • T2P 1G1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPGTSX (The Toronto Stock Exchange)YesCommon StockCACADOct 2001
CPGNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2001
16DB (Deutsche Boerse AG)YesCommon StockDEEUROct 2001
0UR7LSE (London Stock Exchange)YesCommon StockGBCADOct 2001

Biography

Crescent Point Energy Corp. explores, develops, and produces light and medium crude oil and natural gas reserves in Western Canada and the United States. The company's crude oil and natural gas properties, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 23:59
End of Day Share Price2019/11/21 00:00
Earnings2019/09/30
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.