Cardinal Energy Ltd. Fundamental Analysis (TSX: CJ.TO)
Cardinal Energy Ltd. Fundamental Analysis (TSX: CJ.TO)
Cardinal Energy Ltd. (TSX: CJ.TO) shows weak financial fundamentals with a PE ratio of 34.42, profit margin of 10.69%, and ROE of 6.96%. The company generates $0.6B in annual revenue with weak year-over-year growth of -28.10%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 9.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CJ.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakCJ.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateCJ.TO shows balanced valuation metrics.
Growth Score
WeakCJ.TO faces weak or negative growth trends.
Financial Health Score
ModerateCJ.TO shows balanced financial health with some risks.
Profitability Score
WeakCJ.TO struggles to sustain strong margins.
Key Financial Metrics
Is CJ.TO Expensive or Cheap?
P/E Ratio
CJ.TO trades at 34.42 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CJ.TO's PEG of -0.95 indicates potential undervaluation.
Price to Book
The market values Cardinal Energy Ltd. at 2.18 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.52 times EBITDA. This is generally considered low.
How Well Does CJ.TO Make Money?
Net Profit Margin
For every $100 in sales, Cardinal Energy Ltd. keeps $10.69 as profit after all expenses.
Operating Margin
Core operations generate 28.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.96 in profit for every $100 of shareholder equity.
ROA
Cardinal Energy Ltd. generates $4.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cardinal Energy Ltd. generates strong operating cash flow of $260.06M, reflecting robust business health.
Free Cash Flow
Cardinal Energy Ltd. generates strong free cash flow of $105.76M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.60 in free cash annually.
FCF Yield
CJ.TO converts 4.98% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.95
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.18
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.63
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How CJ.TO Stacks Against Its Sector Peers
| Metric | CJ.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.42 | 21.23 | Worse (Expensive) |
| ROE | 6.96% | 1266.00% | Weak |
| Net Margin | 10.69% | 1278.00% | Weak |
| Debt/Equity | 0.14 | -1.82 (disorted) | Distorted |
| Current Ratio | 0.63 | 2.24 | Weak Liquidity |
| ROA | 4.40% | 4418.00% | Weak |
CJ.TO outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cardinal Energy Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
37.34%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
104.05%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
236.31%
Industry Style: Cyclical, Value, Commodity
High Growth