DB:3B6A

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

High growth potential second-rate dividend payer.


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

Stable Share Price: 3B6A has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

8.2%

3B6A

2.8%

DE Oil and Gas

0.1%

DE Market


1 Year Return

12.5%

3B6A

79.9%

DE Oil and Gas

14.1%

DE Market

Return vs Industry: 3B6A underperformed the German Oil and Gas industry which returned 79.3% over the past year.

Return vs Market: 3B6A underperformed the German Market which returned 15.1% over the past year.


Shareholder returns

3B6AIndustryMarket
7 Day8.2%2.8%0.1%
30 Day7.5%6.9%0.2%
90 Day1.3%28.8%3.3%
1 Year12.5%12.5%85.0%79.9%17.6%14.1%
3 Year11.5%11.5%16.1%6.4%14.8%4.8%
5 Year66.6%66.6%329.1%262.1%22.2%5.4%

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

No news available

Valuation

Is Canacol 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: 3B6A (€3.16) is trading below our estimate of fair value (€33.15)

Significantly Below Fair Value: 3B6A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3B6A is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: 3B6A is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3B6A's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3B6A is overvalued based on its PB Ratio (2.8x) compared to the DE Oil and Gas industry average (1.4x).


Next Steps

Future Growth

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

68.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3B6A is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: 3B6A is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 3B6A's is expected to become profitable in the next 3 years.

Revenue vs Market: 3B6A's revenue (20.8% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 3B6A's revenue (20.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3B6A's Return on Equity is forecast to be low in 3 years time (19.1%).


Next Steps

Past Performance

How has Canacol Energy performed over the past 5 years?

5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3B6A is currently unprofitable.

Growing Profit Margin: 3B6A is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 3B6A is unprofitable, but has reduced losses over the past 5 years at a rate of 5.3% per year.

Accelerating Growth: Unable to compare 3B6A's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 3B6A is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-5.3%).


Return on Equity

High ROE: 3B6A has a negative Return on Equity (-3.38%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Canacol Energy's financial position?


Financial Position Analysis

Short Term Liabilities: 3B6A's short term assets ($115.8M) exceed its short term liabilities ($77.4M).

Long Term Liabilities: 3B6A's short term assets ($115.8M) do not cover its long term liabilities ($435.5M).


Debt to Equity History and Analysis

Debt Level: 3B6A's debt to equity ratio (154.6%) is considered high.

Reducing Debt: 3B6A's debt to equity ratio has increased from 56.6% to 154.6% over the past 5 years.


Balance Sheet

Inventory Level: 3B6A has a high level of physical assets or inventory.

Debt Coverage by Assets: 3B6A's debt is not covered by short term assets (assets are 0.3x 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: 3B6A has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 3B6A has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

4.55%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%1.3%markettop25%3.6%industryaverage6.3%forecastin3Years8.2%

Current dividend yield vs market & industry

Notable Dividend: 3B6A's dividend (4.55%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: 3B6A's dividend (4.55%) is in the top 25% of dividend payers in the German market (3.59%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 3B6A's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 3B6A's dividend payments are increasing as they only just started paying a dividend.


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: 3B6A's dividends in 3 years are forecast to be well covered by earnings (47.5% payout ratio).


Next Steps

Management

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

8.3yrs

Average management tenure


CEO

Charle Gamba (55yo)

11.3yrs

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 ($USD1.33M) is about average for companies of similar size in the German market ($USD1.15M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Charle Gamba
President11.3yrsUS$1.77m0.46% $2.7m
Jason Bednar
Chief Financial Officer4.7yrsUS$1.14m0.085% $486.0k
Ravi Sharma
Chief Operating Officer4.3yrsUS$1.34mno data
Anthony Zaidi
VP of Business Development8.3yrsUS$1.31m0.088% $507.6k
Kevin Flick
Vice President of Capital Markets & Investor Relations9.7yrsUS$752.62kno data
Mark Teare
Senior Vice President of Exploration11.1yrsUS$760.99k0.26% $1.5m
Carolina Orozco
Director of Investor Relations0yrsno datano data
Tracy Whitmore
VP Tax & Corporate Affairs0yrsno data0.00083% $4.8k
Thomas Lutz
President of Canacol Energy Colombia3.4yrsno datano data

8.3yrs

Average Tenure

Experienced Management: 3B6A's management team is seasoned and experienced (8.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Charle Gamba
President11.3yrsUS$1.77m0.46% $2.7m
Oswaldo Cisneros
Independent Director4.3yrsUS$128.69kno data
Michael Hibberd
Independent Chairman of the Board11yrsUS$221.45k0.13% $771.0k
David Winter
Independent Director11yrsUS$146.12k0.0038% $21.7k
Gregory Elliott
Independent Director7.2yrsUS$133.17k0.76% $4.4m
Alvaro Barrera
Member of Advisory Board0yrsUS$100.20kno data
Francisco Diaz Salazar
Independent Director5.1yrsUS$137.69kno data
Gonzalo Fernández-Tinoco
Independent Director1.3yrsUS$8.31kno data

7.2yrs

Average Tenure

61.5yo

Average Age

Experienced Board: 3B6A's board of directors are considered experienced (7.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 3B6A insiders have sold more shares than they have bought 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

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


Key Information

  • Name: Canacol Energy Ltd
  • Ticker: 3B6A
  • Exchange: DB
  • Founded:
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$823.514m
  • Listing Market Cap: CA$574.109m
  • Shares outstanding: 180.99m
  • 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 barrels of oil equivalent. The company 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 Analysis2020/02/18 21:30
End of Day Share Price2020/02/18 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.