Canacol Energy Ltd. (CNE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Surge Energy, Inc.

Parex Resources, Inc.

Canacol Energy Ltd.

Spartan Delta Corp.

Cardinal Energy Ltd.

Advantage Energy Ltd.

Frontera Energy Corp.

Crew Energy, Inc.

Pine Cliff Energy Ltd.

Obsidian Energy Ltd.

Trillion Energy International, Inc.

Why is Canacol Energy Ltd. ?

High Management Efficiency with a high ROCE of 18.23%

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt company with Weak Long Term Fundamental Strength

The company has declared Negative results for the last 5 consecutive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 254.1
INTEREST(HY) At CAD 49.35 MM has Grown at 13.46%
OPERATING PROFIT(Q) Lowest at CAD 61.5 MM

With ROE of 5.28%, it has a very attractive valuation with a 0.19 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -30.99%, its profits have fallen by -61.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -30.99% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Canacol Energy Ltd. should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Canacol Energy Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Canacol Energy Ltd.

-49.5%

-0.53

64.64%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.54%

EBIT Growth (5y)

4.88%

EBIT to Interest (avg)

2.88

Debt to EBITDA (avg)

2.27

Net Debt to Equity (avg)

1.80

Sales to Capital Employed (avg)

0.34

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

18.23%

ROE (avg)

21.40%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.15

EV to EBIT

4.78

EV to EBITDA

3.11

EV to Capital Employed

0.70

EV to Sales

2.11

PEG Ratio

Dividend Yield

ROCE (Latest)

14.71%

ROE (Latest)

5.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

NET PROFIT(Q)

At CAD 18.96 MM has Grown at 1,042.74%

DEBTORS TURNOVER RATIO(HY)

Highest at 5.24%

-18What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 254.1

INTEREST(HY)

At CAD 49.35 MM has Grown at 13.46%

OPERATING PROFIT(Q)

Lowest at CAD 61.5 MM

RAW MATERIAL COST(Y)

Grown by 7.79% (YoY

NET SALES(Q)

Lowest at CAD 93.08 MM

PRE-TAX PROFIT(Q)

Lowest at CAD 12.31 MM

Here's what is working for Canacol Energy Ltd.

Net Profit

At CAD 18.96 MM has Grown at 1,042.74%

over average net sales of the previous four periods of CAD 1.66 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Debtors Turnover Ratio

Highest at 5.24%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Canacol Energy Ltd.

Net Sales

At CAD 93.08 MM has Fallen at -27.28%

over average net sales of the previous four periods of CAD 128 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CAD MM)

Interest Coverage Ratio

Lowest at 254.1 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CAD 12.31 MM has Fallen at -70.35%

over average net sales of the previous four periods of CAD 41.52 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Operating Profit

Lowest at CAD 61.5 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CAD MM)

Interest

At CAD 49.35 MM has Grown at 13.46%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Net Sales

Lowest at CAD 93.08 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Pre-Tax Profit

Lowest at CAD 12.31 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Raw Material Cost

Grown by 7.79% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales