Cardinal Energy Ltd. (CJ) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Topaz Energy Corp.

ARC Resources Ltd.

Cardinal Energy Ltd.

Canadian Natural Resources Ltd.

MEG Energy Corp.

Advantage Energy Ltd.

Parex Resources, Inc.

Obsidian Energy Ltd.

Tourmaline Oil Corp.

Vermilion Energy, Inc.

Crew Energy, Inc.

Why is Cardinal Energy Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 17.40

Healthy long term growth as Operating profit has grown by an annual rate 58.34%

The company has declared Negative results for the last 4 consecutive quarters

INTEREST(HY) At CAD 8.73 MM has Grown at 130.27%
OPERATING CASH FLOW(Y) Lowest at CAD 188.19 MM
NET PROFIT(HY) At CAD 34.32 MM has Grown at -30.3%

With ROE of 6.61%, it has a very attractive valuation with a 2.22 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 50.56%, its profits have fallen by -46.6%

Market Beating Performance

The stock has generated a return of 50.56% in the last 1 year, much higher than market (S&P/TSX 60) returns of 29.60%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Cardinal 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 Cardinal Energy Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Cardinal Energy Ltd.

50.56%

1.84

31.34%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.76%

EBIT Growth (5y)

58.34%

EBIT to Interest (avg)

17.40

Debt to EBITDA (avg)

0.83

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

0.47

Tax Ratio

23.97%

Dividend Payout Ratio

554.70%

Pledged Shares

Institutional Holding

1.58%

ROCE (avg)

13.90%

ROE (avg)

13.03%

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

2.22

EV to EBIT

22.80

EV to EBITDA

9.93

EV to Capital Employed

2.03

EV to Sales

4.80

PEG Ratio

Dividend Yield

ROCE (Latest)

8.90%

ROE (Latest)

6.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

6What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 282.13%

RAW MATERIAL COST(Y)

Fallen by -5.77% (YoY

NET SALES(Q)

Highest at CAD 143.22 MM

OPERATING PROFIT(Q)

Highest at CAD 77.96 MM

OPERATING PROFIT MARGIN(Q)

Highest at 54.43 %

-18What is not working for the Company

INTEREST(HY)

At CAD 8.73 MM has Grown at 130.27%

OPERATING CASH FLOW(Y)

Lowest at CAD 188.19 MM

NET PROFIT(HY)

At CAD 34.32 MM has Grown at -30.3%

ROCE(HY)

Lowest at 1.1%

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.5 times

Here's what is working for Cardinal Energy Ltd.

Net Sales

Highest at CAD 143.22 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Net Sales

At CAD 143.22 MM has Grown at 30.37%

over average net sales of the previous four periods of CAD 109.86 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 77.96 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 54.43 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Dividend Payout Ratio

Highest at 282.13%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -5.77% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Depreciation

Highest at CAD 36.54 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

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

Interest

At CAD 8.73 MM has Grown at 130.27%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Net Profit

At CAD 34.32 MM has Grown at -30.3%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Operating Cash Flow

Lowest at CAD 188.19 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Debtors Turnover Ratio

Lowest at 6.5 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio