LSE:CNE

Stock Analysis Report

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Market Cap

UK£629.9m

Last Updated

2021/07/31 04:01 UTC

Data Sources

Company Financials +

Executive Summary

Cairn Energy PLC operates as an independent oil and gas exploration, development, and production company. More Details


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CNE is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CNE's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-5.1%

CNE

2.7%

GB Oil and Gas

0.3%

GB Market


1 Year Return

-9.7%

CNE

30.4%

GB Oil and Gas

22.4%

GB Market

Return vs Industry: CNE underperformed the UK Oil and Gas industry which returned 30.4% over the past year.

Return vs Market: CNE underperformed the UK Market which returned 22.4% over the past year.


Shareholder returns

CNEIndustryMarket
7 Day-5.1%2.7%0.3%
30 Day-16.2%-4.4%0.3%
90 Day-24.8%5.2%1.5%
1 Year6.9%-9.7%35.2%30.4%27.9%22.4%
3 Year-47.5%-55.6%-7.0%-19.8%12.7%-0.1%
5 Year-33.8%-44.0%33.8%7.1%39.4%12.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.78x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: CNE (£1.28) is trading above our estimate of fair value (£1.02)

Significantly Below Fair Value: CNE is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CNE is good value based on its PB Ratio (0.8x) compared to the GB Oil and Gas industry average (1.1x).


Future Growth

How is Cairn Energy forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-27.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNE's earnings are forecast to decline over the next 3 years (-27.5% per year).

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

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

Revenue vs Market: CNE's revenue is expected to decline over the next 3 years (-10.1% per year).

High Growth Revenue: CNE's revenue is forecast to decline over the next 3 years (-10.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CNE's Return on Equity is forecast to be high in 3 years time (21.6%)


Past Performance

How has Cairn Energy performed over the past 5 years?

-0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CNE is currently unprofitable.

Growing Profit Margin: CNE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CNE is unprofitable, and losses have increased over the past 5 years at a rate of 0.7% per year.

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

Earnings vs Industry: CNE is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-23.1%).


Return on Equity

High ROE: CNE has a negative Return on Equity (-10.44%), as it is currently unprofitable.


Financial Health

How is Cairn Energy's financial position?


Financial Position Analysis

Short Term Liabilities: CNE's short term assets ($661.9M) exceed its short term liabilities ($142.8M).

Long Term Liabilities: CNE's short term assets ($661.9M) exceed its long term liabilities ($366.9M).


Debt to Equity History and Analysis

Debt Level: CNE is debt free.

Reducing Debt: CNE had no debt 5 years ago.


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: CNE has sufficient cash runway for more than 3 years based on its current free cash flow.

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


Dividend

What is Cairn Energy current dividend yield, its reliability and sustainability?

7.57%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate CNE'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 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 UK market.


Next Steps

Management

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

8.5yrs

Average management tenure


CEO

Simon Thomson (56 yo)

10yrs

Tenure

US$2,020,276

Compensation

Mr. Simon John Thomson has been Chief Executive Officer of Cairn Energy Plc (Holding Company of Agora Oil and Gas AS) since July 1, 2011. Mr. Thomson serves as Chief Executive Officer of Cairn Energy plc a...


CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD2.02M) is above average for companies of similar size in the UK market ($USD976.57K).

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


Leadership Team

Experienced Management: CNE's management team is seasoned and experienced (8.5 years average tenure).


Board Members

Experienced Board: CNE's board of directors are considered experienced (3.9 years average tenure).


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

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


Top Shareholders

Company Information

Cairn Energy PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cairn Energy PLC
  • Ticker: CNE
  • Exchange: LSE
  • Founded: 1980
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: UK£629.946m
  • Shares outstanding: 493.30m
  • Website: https://www.cairnenergy.com

Number of Employees


Location

  • Cairn Energy PLC
  • 50 Lothian Road
  • Edinburgh
  • EH3 9BY
  • United Kingdom

Listings


Biography

Cairn Energy PLC operates as an independent oil and gas exploration, development, and production company. It holds a portfolio of exploration, development, and production assets in the United Kingdom, Isra...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 04:01
End of Day Share Price2021/07/30 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.