Canacol Energy Ltd
Canacol Energy Ltd Fundamental Analysis
Canacol Energy Ltd (CNE.TO) shows strong financial fundamentals with a PE ratio of 0.96, profit margin of 12.19%, and ROE of 10.90%. The company generates $0.3B in annual revenue with strong year-over-year growth of 19.03%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CNE.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakCNE.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCNE.TO trades at attractive valuation levels.
Growth Score
ModerateCNE.TO shows steady but slowing expansion.
Financial Health Score
WeakCNE.TO carries high financial risk with limited liquidity.
Profitability Score
WeakCNE.TO struggles to sustain strong margins.
Key Financial Metrics
Is CNE.TO Expensive or Cheap?
P/E Ratio
CNE.TO trades at 0.96 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CNE.TO's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values Canacol Energy Ltd at 0.10 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -3.06 times EBITDA. This is generally considered low.
How Well Does CNE.TO Make Money?
Net Profit Margin
For every $100 in sales, Canacol Energy Ltd keeps $12.19 as profit after all expenses.
Operating Margin
Core operations generate 48.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.90 in profit for every $100 of shareholder equity.
ROA
Canacol Energy Ltd generates $3.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Canacol Energy Ltd generates strong operating cash flow of $186.37M, reflecting robust business health.
Free Cash Flow
Canacol Energy Ltd generates strong free cash flow of $40.93M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.20 in free cash annually.
FCF Yield
CNE.TO converts 1.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
0.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.12
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.88
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.59
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How CNE.TO Stacks Against Its Sector Peers
| Metric | CNE.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 0.96 | 21.23 | Better (Cheaper) |
| ROE | 10.90% | 945.00% | Weak |
| Net Margin | 12.19% | -60038.00% (disorted) | Strong |
| Debt/Equity | 1.88 | -0.49 (disorted) | Distorted |
| Current Ratio | 0.59 | 6.45 | Weak Liquidity |
| ROA | 3.01% | -11001215.00% (disorted) | Weak |
CNE.TO outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Canacol Energy Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
62.31%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-199.90%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
62.10%
Industry Style: Cyclical, Value, Commodity
High Growth