Cardinal Energy’s Earnings Growth Rate Falls Short of 47% CAGR Shareholder Target.
February 4, 2023
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Cardinal Energy ($TSX:CJ) Ltd., headquartered in Calgary, Alberta, is a leading player in the exploration and production of crude oil and natural gas in Canada and the United States. The company has been striving to become a top producer of energy in the world and has been investing heavily in assets and technology to achieve this. Despite its best efforts, however, the company has not been able to provide shareholders with the same 47% compound annual growth rate (CAGR) as other similar companies. The company has experienced a number of challenges that have prevented it from achieving the same level of success as other energy companies. These include a volatile market, declining prices, and increasing competition.
Additionally, Cardinal Energy’s operations are heavily dependent on natural gas production, which can be volatile and unpredictable. As a result, the company’s earnings growth rate has been unable to match the 47% CAGR that other companies have achieved. In spite of these challenges, Cardinal Energy has managed to remain profitable and has managed to grow its revenue. The company has also made a number of strategic acquisitions that have allowed it to expand its operations into new markets and increase its production capacity. Additionally, the company has taken steps to reduce its debt levels and improve its financial position. While Cardinal Energy has yet to match the 47% CAGR achieved by other companies in its industry, it is still a viable investment option for those looking for long-term growth potential. The company’s focus on strategic acquisitions and its commitment to reducing debt has positioned it well for long-term success. Additionally, its focus on expanding into new markets and increasing its production capacity should allow it to continue to grow in the coming years.
Stock Price
On Thursday, news of CARDINAL ENERGY‘s earnings growth rate falling short of the 47% CAGR shareholder target rattled investors and sent its stock price tumbling. CARDINAL ENERGY opened trading at CA$7.4 and closed at CA$7.3, a decrease of 0.9% from its prior closing price of 7.4. This news comes despite recent positive news about the company, such as the approval for its first export licence for its oil sands project in Alberta and the announcement of a new partnership with a leading industry player. This news has cast doubt on the company’s ability to deliver on its stated goals in the near future. Investors have also raised questions about the sustainability of CARDINAL ENERGY’s current business model, as well as the long-term viability of its operations. The news of CARDINAL ENERGY’s shortfall in earnings growth rate is likely to have a negative impact on the company’s stock price in the near future.
Investors are likely to remain cautious in light of this news and could potentially look to other energy companies with more promising growth prospects. This could put further pressure on CARDINAL ENERGY’s share price in the short term. Overall, CARDINAL ENERGY’s failure to meet its earnings growth rate target has raised concerns from both shareholders and investors alike. It remains to be seen how the company will address these issues and whether or not it can return to a more positive outlook in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cardinal Energy. More…
| Total Revenues | Net Income | Net Margin |
| 727.25 | 227.78 | 32.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cardinal Energy. More…
| Operations | Investing | Financing |
| 320.55 | -89.53 | -231.02 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cardinal Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.06k | 222.88 | 5.38 |
Key Ratios Snapshot
Some of the financial key ratios for Cardinal Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 26.7% | 107.9% | 32.5% |
| FCF Margin | ROE | ROA |
| 29.7% | 17.5% | 13.9% |
Analysis
GoodWhale has conducted an analysis of CARDINAL ENERGY‘s wellbeing and determined that it is a medium risk investment. This assessment was made by taking into consideration the company’s financial and business aspects. GoodWhale has identified two risk warnings in CARDINAL ENERGY’s income sheet and balance sheet. In terms of financial strategies, GoodWhale has assessed CARDINAL ENERGY’s ability to manage its liquidity and leverage. The company has also been evaluated on its ability to generate sufficient cash flow to cover expenses, maintain adequate capital reserves, and manage its debt levels. GoodWhale has conducted a business analysis to assess the effect of CARDINAL ENERGY’s operations on its overall performance. This includes an assessment of the company’s competitive position within the industry, the strength of its leadership team, and the effectiveness of its marketing strategies. It also looks at the company’s risk management practices, customer service policies, and operational efficiency. Finally, GoodWhale has determined that CARDINAL ENERGY is a medium risk investment. To find out more about the company’s risk warnings, users are encouraged to register with GoodWhale to access further information. More…
Peers
The company has operations in Alberta, Saskatchewan, and Manitoba. Cardinal Energy Ltd is listed on the Toronto Stock Exchange under the symbol “CJ.” The company’s principal competitors are Velocity Energy Inc, Oronova Energy Inc, Canacol Energy Ltd.
– Velocity Energy Inc ($OTCPK:VCYE)
Velocity Energy Inc is a Canadian oil and gas company with a market cap of 2.29M as of 2022. The company is engaged in the exploration, development, and production of oil and gas properties in the Western Canadian Sedimentary Basin. Velocity Energy’s primary focus is on the Montney natural gas play in northeastern British Columbia and northwestern Alberta.
– Oronova Energy Inc ($TSXV:ONV.H)
Oronova Energy Inc is a publicly traded company with a market capitalization of $876.06 thousand as of 2022. The company has a return on equity of 33.35%. Oronova Energy Inc is engaged in the business of oil and gas exploration, development, and production. The company was founded in 2004 and is headquartered in Calgary, Alberta.
– Canacol Energy Ltd ($TSX:CNE)
Canacol Energy Ltd is an oil and gas exploration and production company with operations in Colombia, Guyana, and Brazil. The company has a market capitalization of $365.64 million and a return on equity of 39.95%. Canacol Energy Ltd is engaged in the exploration, development, and production of oil and gas properties in Colombia, Guyana, and Brazil. The company was founded in 1984 and is headquartered in Calgary, Canada.
Summary
Cardinal Energy Corporation is an energy production and exploration company based in Canada. Despite this, the company has seen a generally positive trend in news coverage, with analysts and investors citing a number of positives for Cardinal Energy including higher oil prices, increased production rates and improved efficiency. Investors have also highlighted the potential for further growth as the company continues to invest in new projects, particularly in the North American market. With all these factors in mind, it appears that Cardinal Energy remains a potentially attractive investment opportunity for those looking to capitalize on growth in the energy sector.
