Cardinal Energy (CJ) AI Stock Analysis

• Market Cap: C$1.35B
• Dividend Yield: 8.25%
• Average Volume (3M): 897.55K
• Price to Earnings (P/E): 17.8
• Beta (1Y): 1.00
• Revenue Growth: -9.30%
• EPS Growth: -26.09%
• Country: CA
• Employees: 177
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.09
• Shares Outstanding: 161,148,040
• 10 Day Avg. Volume: 1,053,157
• 30 Day Avg. Volume: 897,546
• PEG Ratio: 3.14
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 1.69
• P/FCF Ratio: 7.14
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$8.81
• Price Target Upside: 5.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: C$10.00 ▲(19.62% Upside)

The score is driven primarily by solid financial performance (strong margins and cash generation despite recent TTM revenue/FCF softness and higher leverage versus prior periods). Technicals add support with price above key moving averages and neutral-to-slightly positive momentum. Valuation is helped by the high dividend yield, but a mid-to-high P/E for a cyclical business limits upside in this component.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective business strategies, which can enhance long-term profitability and market position.

Balance Sheet Health

A strong equity ratio and low debt-to-equity ratio reflect financial stability, providing Cardinal Energy with the flexibility to invest in growth opportunities and weather economic downturns.

Cash Flow Generation

Robust cash flow growth supports operational sustainability and strategic investments, enhancing the company's ability to fund expansion and return value to shareholders.

Negative Factors

Net Profit Margin

A relatively modest net profit margin indicates potential inefficiencies or cost pressures, which could limit profitability and competitiveness if not addressed.

Earnings Volatility

Lack of EBIT data suggests potential earnings volatility, which can create uncertainty in financial performance assessments and investor confidence.

Revenue Decline

A decline in revenue growth can signal challenges in market demand or competitive pressures, potentially impacting long-term growth prospects and operational efficiency.

Cardinal Energy Business Overview & Revenue Model

Company Description

Cardinal Energy Ltd. engages in the acquisition, exploration, and production of low decline light, medium, and heavy quality oil, and natural gas in Western Canada. It has operations in the provinces of Alberta and Saskatchewan. As of February 24, 2022, the company had total proved plus probable oil and gas reserves are 110,391 thousand barrels of oil equivalent. Cardinal Energy Ltd. was incorporated in 2010 and is headquartered in Calgary, Canada.

How the Company Makes Money

Cardinal Energy generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids. The company operates a diverse portfolio of assets that allows it to capitalize on various market conditions, including the pricing of different hydrocarbon products. Key revenue streams include the direct sales of produced hydrocarbons to refineries and gas processing facilities, as well as transportation and marketing arrangements that facilitate the delivery of products to market. Additionally, Cardinal Energy may benefit from hedging strategies to protect against volatile commodity prices, and they engage in strategic partnerships and joint ventures that can enhance operational efficiency and expand production capabilities, further contributing to their earnings.

Cardinal Energy Financial Statement Overview

Summary

Cardinal Energy demonstrates strong financial health with robust revenue growth and effective cost management. The balance sheet is stable with low leverage, and cash flow generation is efficient. However, there is room for improvement in profitability metrics.

Income Statement

Cardinal Energy has shown robust revenue growth with a 27% increase from the previous year. The gross profit margin remains strong at approximately 64.2%, indicating efficient cost management. However, the net profit margin stands at 17.7%, suggesting room for improvement in profitability. The absence of EBIT in 2024 affects the comprehensive margin analysis.

Balance Sheet

The company maintains a healthy equity ratio of 70.8%, showcasing financial stability. The debt-to-equity ratio is low at 0.10, reflecting conservative leverage. Return on equity is modest at 11.8%, indicating steady profitability relative to shareholder's equity.

Cash Flow

Cardinal Energy has achieved a 14.6% growth in free cash flow, supported by a strong operating cash flow to net income ratio of 2.28, signifying efficient cash generation. Despite this, free cash flow to net income ratio at 1.33 suggests potential for optimizing capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	533.03M	611.12M	481.12M	741.84M	448.75M	226.46M
Gross Profit	243.60M	392.29M	265.00M	489.37M	286.82M	126.13M
EBITDA	211.73M	252.94M	253.64M	410.56M	385.95M	-171.31M
Net Income	76.53M	108.35M	103.60M	302.69M	284.42M	-363.16M
Balance Sheet
Total Assets	1.40B	1.30B	1.19B	1.16B	1.08B	749.13M
Cash, Cash Equivalents and Short-Term Investments	0.00	4.88M	4.09M	3.73M	3.51M	2.88M
Total Debt	215.57M	90.31M	50.10M	35.77M	157.59M	239.13M
Total Liabilities	512.23M	378.72M	267.16M	229.64M	356.60M	376.29M
Stockholders Equity	890.76M	918.26M	920.69M	925.37M	719.23M	372.85M
Cash Flow
Free Cash Flow	141.27M	144.26M	125.83M	216.61M	68.72M	12.02M
Operating Cash Flow	216.40M	247.54M	230.26M	337.26M	125.12M	43.52M
Investing Cash Flow	-239.68M	-163.97M	-114.64M	-116.18M	-46.57M	-50.75M
Financing Cash Flow	23.28M	-83.57M	-115.63M	-221.08M	-78.55M	7.22M

Cardinal Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.36
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CJ, the sentiment is Neutral. The current price of 8.36 is below the 20-day moving average (MA) of 8.63, below the 50-day MA of 8.63, and above the 200-day MA of 7.11, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 42.15 is Neutral, neither overbought nor oversold. The STOCH value of 26.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CJ.

Cardinal Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PXT	76 Outperform	$1.76B	11.30	5.77%	8.48%	-20.07%	-53.33%
CJ	72 Outperform	C$1.35B	17.83	8.46%	8.25%	-9.30%	-26.09%
SGY	69 Neutral	C$652.82M	14.66	5.87%	7.59%	-7.36%	―
SDE	67 Neutral	C$1.46B	36.99	7.22%	―	17.31%	-75.56%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
KEL	61 Neutral	C$1.44B	24.79	5.22%	―	9.92%	2.74%

Cardinal Energy Corporate Events

Cardinal Energy Declares December Dividend

Cardinal Energy Ltd. has announced a monthly dividend of $0.06 per common share for December, payable on January 15, 2026, to shareholders of record on December 31, 2025. This dividend, declared by the Board of Directors, is designated as an ‘eligible dividend’ for Canadian income tax purposes, reflecting the company’s commitment to providing shareholder value and its stable financial position.

The most recent analyst rating on (TSE:CJ) stock is a Buy with a C$10.50 price target. To see the full list of analyst forecasts on Cardinal Energy stock, see the TSE:CJ Stock Forecast page.

Cardinal Energy Announces November Dividend and Strong Initial Production at Reford

Cardinal Energy Ltd. has announced a monthly dividend of $0.06 per common share for November, payable on December 15, 2025. The company also reported that production at the Reford Central Production Facility has exceeded initial forecasts, averaging approximately 4,000 barrels per day of heavy oil. This strong performance at an early stage reflects Cardinal’s disciplined reservoir management aimed at maximizing long-term value and recovery.

The most recent analyst rating on (TSE:CJ) stock is a Buy with a C$8.50 price target. To see the full list of analyst forecasts on Cardinal Energy stock, see the TSE:CJ Stock Forecast page.

Cardinal Energy Reports Q3 2025 Results, Advances Reford SAGD Project

Cardinal Energy Ltd. reported its third-quarter 2025 results, highlighting a production rate of 20,772 boe/d and an adjusted funds flow of $47.3 million. The company focused on completing the Reford SAGD project, which is now in the warm-up phase, and maintained its shareholder return strategy with consistent dividends. Despite a decrease in commodity pricing and slightly lower production, Cardinal managed to reduce net operating expenses and complete projects on budget and schedule, impacting its financial stability and operational efficiency.

The most recent analyst rating on (TSE:CJ) stock is a Buy with a C$9.00 price target. To see the full list of analyst forecasts on Cardinal Energy stock, see the TSE:CJ Stock Forecast page.

Cardinal Energy Declares October Dividend

Cardinal Energy Ltd. has announced a monthly dividend of $0.06 per common share for October, payable on November 17, 2025, to shareholders of record as of October 31, 2025. This move underscores Cardinal’s commitment to providing shareholder value and maintaining its position in the energy sector, particularly in the context of its sustainable oil production operations in Western Canada.

The most recent analyst rating on (TSE:CJ) stock is a Hold with a C$8.50 price target. To see the full list of analyst forecasts on Cardinal Energy stock, see the TSE:CJ Stock Forecast page.

Cardinal Energy Unveils Reford SAGD Project in Saskatchewan

Cardinal Energy Ltd. announced the opening of its Reford SAGD oil project in Saskatchewan, marking a significant milestone for the company and the province. The project is expected to provide long-term benefits by creating jobs, boosting local economic activity, and generating substantial royalty revenue for Saskatchewan. This development positions Cardinal as a leader in sustainable energy production and supports the province’s goal of increasing oil production. The Reford project enhances Cardinal’s production capacity, cash flow, and financial stability, offering resilience against fluctuating oil prices and contributing to the company’s long-term growth strategy.

The most recent analyst rating on (TSE:CJ) stock is a Hold with a C$8.50 price target. To see the full list of analyst forecasts on Cardinal Energy stock, see the TSE:CJ Stock Forecast page.