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Cardinal Energy J (TSE:CJ)
TSX:CJ

Cardinal Energy (CJ) AI Stock Analysis

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Cardinal Energy

(TSX:CJ)

72Outperform
Cardinal Energy's strong financial performance, characterized by high profitability and a robust balance sheet, is a major strength, contributing significantly to the company's overall score. However, the bearish technical indicators and declining revenue growth are areas of concern. The attractive valuation, including a low P/E ratio and high dividend yield, provides a counterbalance, making the stock appealing to income-focused investors. Overall, while the company is fundamentally strong, market sentiment remains cautious.

Cardinal Energy (CJ) vs. S&P 500 (SPY)

Cardinal Energy Business Overview & Revenue Model

Company DescriptionCardinal Energy Ltd. (CJ) is a Canadian-based oil and gas company primarily engaged in the exploration, development, and production of crude oil and natural gas in Western Canada. The company focuses on the acquisition and development of low-decline oil properties, aiming to provide sustainable returns to its stakeholders. Cardinal Energy operates in the energy sector, offering a range of products including light, medium, and heavy crude oil, as well as natural gas.
How the Company Makes MoneyCardinal Energy generates revenue through the extraction and sale of crude oil and natural gas. The company's revenue streams are primarily driven by the market prices of these commodities, which can fluctuate based on global demand and supply dynamics. Cardinal Energy sells its oil and gas production to a variety of buyers, including refineries and other energy companies, often through direct sales contracts or spot market transactions. The company may also engage in hedging activities to manage price risk and stabilize cash flows. Additionally, strategic partnerships and acquisitions of low-decline oil properties help enhance its production capabilities and contribute to its revenue growth.

Cardinal Energy Financial Statement Overview

Summary
Cardinal Energy demonstrates a solid financial foundation with strong profitability and efficient operations. While revenue has declined, the company maintains high margins and a stable balance sheet. Cash flows are robust, supporting operational needs and potential investments. The company is positioned well within the fossil fuels industry, though the revenue decline may pose a challenge if not addressed.
Income Statement
75
Positive
Cardinal Energy has shown a consistent improvement in its financial performance. The TTM gross profit margin stands at approximately 43.5%, indicating solid profitability. The net profit margin of 19.6% highlights strong bottom-line performance. However, the revenue growth rate is negative at around -29.1%, which suggests a decline in sales compared to previous years. The EBIT and EBITDA margins at 29.1% and 48.8% respectively show operational efficiency.
Balance Sheet
80
Positive
The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.08, reflecting conservative leverage. The return on equity is strong at 11.2%, showcasing effective utilization of shareholders' equity. The equity ratio is robust at 73.5%, indicating financial stability and a strong asset base primarily funded by equity.
Cash Flow
78
Positive
Cardinal Energy's cash flow position is strong, with an operating cash flow to net income ratio of 2.56, indicating efficient cash generation relative to net income. The free cash flow growth rate is modest at 3.5%, showing slight improvement in cash generation. The free cash flow to net income ratio is 1.26, suggesting healthy cash flow relative to earnings.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
525.89M481.12M741.84M448.75M226.46M391.60M
Gross Profit
228.96M265.00M489.37M290.17M126.13M233.76M
EBIT
153.05M138.25M249.77M102.82M-17.91M41.49M
EBITDA
256.59M253.64M410.56M385.95M-171.31M89.42M
Net Income Common Stockholders
102.92M103.60M302.69M284.42M-363.16M-34.34M
Balance SheetCash, Cash Equivalents and Short-Term Investments
15.38M4.09M-4.49M-2.63M-3.91M-5.43M
Total Assets
1.21B1.19B1.16B1.08B749.13M1.15B
Total Debt
259.59M50.10M35.77M157.59M239.13M222.90M
Net Debt
262.28M50.10M40.26M160.22M243.05M228.33M
Total Liabilities
413.71M267.16M229.64M356.60M376.29M411.93M
Stockholders Equity
792.62M920.69M925.37M719.23M372.85M737.90M
Cash FlowFree Cash Flow
130.20M125.83M216.61M68.72M12.02M54.07M
Operating Cash Flow
263.77M230.26M337.26M125.12M43.52M119.98M
Investing Cash Flow
-162.89M-114.64M-116.18M-46.57M-50.75M-48.83M
Financing Cash Flow
-100.88M-115.63M-221.08M-78.55M7.22M-71.15M

Cardinal Energy Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.09
Price Trends
50DMA
6.40
Negative
100DMA
6.30
Negative
200DMA
6.29
Negative
Market Momentum
MACD
-0.08
Positive
RSI
46.09
Neutral
STOCH
32.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CJ, the sentiment is Negative. The current price of 6.09 is below the 20-day moving average (MA) of 6.29, below the 50-day MA of 6.40, and below the 200-day MA of 6.29, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 46.09 is Neutral, neither overbought nor oversold. The STOCH value of 32.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CJ.

Cardinal Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSWCP
74
Outperform
C$4.88B6.0814.51%9.28%3.34%-6.99%
TSCJ
72
Outperform
C$972.94M9.4011.14%11.82%2.04%-48.47%
TSTOU
70
Outperform
C$24.32B18.228.55%2.04%-8.29%-30.52%
TSARX
70
Outperform
$15.13B13.5714.67%2.87%-9.83%-27.76%
TSBTE
68
Neutral
C$2.27B9.955.99%3.26%22.71%
TSVET
62
Neutral
$1.73B-1.59%4.81%-1.72%79.87%
57
Neutral
$8.36B5.47-5.51%7.41%0.15%-68.69%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:CJ
Cardinal Energy
6.19
0.20
3.34%
TSE:BTE
Baytex Energy
3.08
-1.22
-28.44%
TSE:ARX
ARC Resources
26.37
3.88
17.25%
TSE:WCP
Whitecap Resources
8.56
-0.35
-3.93%
TSE:VET
Vermilion Energy
11.74
-3.10
-20.87%
TSE:TOU
Tourmaline Oil
66.43
8.94
15.55%

Cardinal Energy Corporate Events

Cardinal Energy Announces Ambitious 2025 Budget with Focus on Thermal Projects
Jan 15, 2025

Cardinal Energy Ltd. has announced its 2025 budget, highlighting plans to generate $217 million in adjusted funds flow at US$70 WTI. The company aims to achieve an average production of 21,300 to 21,700 boe/d, with a significant increase expected as the Reford project contributes in the fourth quarter. The budget includes a $71 million conventional capital budget and a $120 million thermal oil budget, with a focus on completing the Reford SAGD project and de-risking another thermal project at Kelfield. Cardinal plans to maintain its dividend at $0.06 per share per month and forecasts substantial free cash flow to support its financial commitments. The Reford project is progressing on schedule, with first steam expected in the third quarter of 2025 and full production by the first quarter of 2026.

Cardinal Energy Declares January Dividend
Jan 13, 2025

Cardinal Energy Ltd. announced a monthly dividend of $0.06 per common share, payable on February 18, 2025, to shareholders recorded by January 31, 2025. The cash dividend is recognized as an ‘eligible dividend’ for Canadian tax purposes, reflecting Cardinal’s commitment to providing returns to its shareholders while advancing its operational projects.

Cardinal Energy Completes $60 Million Offering
Jan 3, 2025

Cardinal Energy Ltd. has successfully closed a $60 million bought deal offering, issuing senior subordinated unsecured debentures and common share purchase warrants. The proceeds will be used to reduce outstanding debt and fund future projects, including the Reford thermal project. The debentures and warrants are now trading on the Toronto Stock Exchange.

Cardinal Energy Announces $50M Bought Deal Offering
Dec 18, 2024

Cardinal Energy Ltd. has announced a $50 million bought deal offering involving senior subordinated unsecured debentures and common share purchase warrants. The proceeds will be used to repay debt, complete the Reford thermal project, and support future projects and corporate purposes. The offering is set to close around January 3, 2025, with the debentures bearing an annual interest rate of 7.75%.

Cardinal Energy Expands Credit Facilities
Dec 12, 2024

Cardinal Energy Ltd. has successfully increased its credit facilities to $275 million, gaining additional financial support for its capital program. The enhanced liquidity will aid in advancing the company’s steam-assisted gravity drainage project in Reford, reflecting Cardinal’s strategic growth initiatives.

Cardinal Energy Declares Dividend and New Project
Dec 9, 2024

Cardinal Energy Ltd. has announced a monthly dividend of $0.06 per common share to be paid in January 2025, highlighting its commitment to shareholders. The company also stands out in the Western Canadian oil sector with its low decline asset base and a new thermal SAGD oil development project, which promises long-term sustainability.

Cardinal Energy’s Strong Q3 Financial Results
Nov 8, 2024

Cardinal Energy reported strong financial performance for the third quarter of 2024, with adjusted funds flow of $65.7 million supporting its active drilling and development programs. Despite planned and unplanned facility turnarounds, the company anticipates increasing production in the fourth quarter.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.