Cardinal Energy (CJ) AI Stock Analysis

• Market Cap: C$1.14B
• Dividend Yield: 10.49%
• Average Volume (3M): 559.51K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.94
• Revenue Growth: -9.20%
• EPS Growth: -25.28%
• Country: CA
• Employees: 177
• Sector: Energy
• Sector Strength: 49
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.10
• Shares Outstanding: 161,017,670
• 10 Day Avg. Volume: 695,072
• 30 Day Avg. Volume: 559,511
• 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$7.67
• Price Target Upside: 8.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 80 Outperform
• Price Target: C$8.00 ▲(12.99% Upside)

Cardinal Energy's strong financial performance, attractive valuation, and positive corporate events contribute to a robust stock score. The technical analysis supports a positive trend, enhancing the overall outlook.

Positive Factors

Financial Performance

Incremental free cash flow from Reford coming online should jump start the deleveraging process.

Project Funding

Funding certainty for the Reford thermal development has been secured with two senior unsecured debenture offerings totaling $105 million.

Negative Factors

Capital Spending

Capital spending came in higher than consensus due to accelerated spending at Reford.

Debt Levels

Cardinal's net debt is expected to build further and peak in Q3/25.

Valuation

Cardinal's shares are trading at a 2025E EV/EBITDA multiple of ~5.5x, which is higher than the company’s peer group average of 4.0x.

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 exploration and production of crude oil and natural gas. The company's core revenue streams consist of the sale of crude oil, natural gas liquids, and natural gas. Cardinal leverages its extensive asset base and operational efficiency to optimize production levels and reduce costs, thereby enhancing profitability. The company also benefits from various partnerships and joint ventures that provide access to additional resources and markets. Additionally, fluctuations in commodity prices significantly impact its revenue, thus Cardinal employs hedging strategies to mitigate price volatility risks and stabilize cash flows.

Cardinal Energy Financial Statement Overview

Summary

Cardinal Energy exhibits a solid financial standing with strong revenue growth, efficient cost management, and a stable balance sheet with low leverage. Cash flow generation is robust, yet profitability metrics suggest room for improvement.

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	578.20M	611.12M	481.12M	741.84M	448.75M	226.46M
Gross Profit	311.01M	392.29M	265.00M	489.37M	286.82M	126.13M
EBITDA	225.95M	252.94M	253.64M	410.56M	385.95M	-171.31M
Net Income	87.87M	108.35M	103.60M	302.69M	284.42M	-363.16M
Balance Sheet
Total Assets	1.38B	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	198.95M	90.31M	50.10M	35.77M	157.59M	239.13M
Total Liabilities	479.01M	378.72M	267.16M	229.64M	356.60M	376.29M
Stockholders Equity	903.00M	918.26M	920.69M	925.37M	719.23M	372.85M
Cash Flow
Free Cash Flow	162.20M	144.26M	125.83M	216.61M	68.72M	12.02M
Operating Cash Flow	244.55M	247.54M	230.26M	337.26M	125.12M	43.52M
Investing Cash Flow	-243.03M	-163.97M	-114.64M	-116.18M	-46.57M	-50.75M
Financing Cash Flow	-1.52M	-83.57M	-115.63M	-221.08M	-78.55M	7.22M

Cardinal Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CJ, the sentiment is Positive. The current price of 7.08 is below the 20-day moving average (MA) of 7.08, above the 50-day MA of 6.80, and above the 200-day MA of 6.17, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 55.32 is Neutral, neither overbought nor oversold. The STOCH value of 19.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CJ.

Cardinal Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CJ	80 Outperform	C$1.14B	12.85	9.64%	10.49%	-9.20%	-25.28%
Sector *	66 Neutral	$15.04B	9.28	7.36%	5.56%	3.96%	-72.38%
VET	―	$1.16B	―	4.40%	4.77%	―	―
AOIFF	―	$854.61M	―	-25.82%	7.79%	―	―
KELTF	―	$965.74M	17.97	6.73%	―	―	―
PARXF	―	$1.16B	9.31	6.62%	9.26%	―	―
KEC	61 Neutral	C$1.02B	7.79	17.11%	―	6.01%	-99.01%

Cardinal Energy Corporate Events

Cardinal Energy Reports Increased Production and Progress on SAGD Project

Cardinal Energy Ltd. reported a 3% increase in production for the second quarter of 2025, achieving 21,184 boe/d despite limited drilling activities. The company directed $49.4 million in adjusted funds flow towards its Reford SAGD project and dividends. Cardinal’s net operating expenses decreased by 5%, while net debt rose to $227.1 million. The Reford project is on track for completion, with first steam expected in the third quarter, and the company maintained its dividend payout strategy, returning $28.9 million to shareholders.

The most recent analyst rating on (TSE:CJ) stock is a Hold with a C$7.00 price target. To see the full list of analyst forecasts on Cardinal Energy stock, see the TSE:CJ Stock Forecast page.

Cardinal Energy Declares July Dividend, Reinforces Market Position

Cardinal Energy Ltd. has announced a monthly dividend of $0.06 per common share for July, payable on August 15, 2025, to shareholders of record on July 31, 2025. This move reflects Cardinal’s commitment to providing shareholder value and may strengthen its market position by showcasing financial stability and operational focus on sustainable oil production.

The most recent analyst rating on (TSE:CJ) stock is a Hold with a C$7.00 price target. To see the full list of analyst forecasts on Cardinal Energy stock, see the TSE:CJ Stock Forecast page.

Cardinal Energy Declares June Dividend, Reinforces Shareholder Value

Cardinal Energy Ltd. has announced a monthly dividend of $0.06 per common share for June, payable on July 15, 2025, to shareholders of record on June 30, 2025. This move underscores Cardinal’s commitment to providing shareholder value and reflects the company’s stable financial position, potentially enhancing its attractiveness to investors.

The most recent analyst rating on (TSE:CJ) stock is a Hold with a C$7.00 price target. To see the full list of analyst forecasts on Cardinal Energy stock, see the TSE:CJ Stock Forecast page.

Cardinal Energy Declares May Dividend and Advances Strategic Projects

Cardinal Energy Ltd. has announced a monthly dividend of $0.06 per common share, payable on June 16, 2025, to shareholders recorded by May 30, 2025. This dividend, declared as an eligible dividend for Canadian tax purposes, reflects Cardinal’s continued commitment to providing shareholder value while advancing its strategic projects in sustainable oil production.

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 Announces Director Election Results

Cardinal Energy Ltd. announced the results of its annual and special shareholders’ meeting, where six directors were elected, including Connie Shevkenek as a new director. Shevkenek, who recently retired as Vice President of Engineering, was among those elected, and all other shareholder matters were approved. This election and the approval of shareholder matters are expected to support Cardinal’s strategic initiatives and operational stability.

Cardinal Energy Reports Strong Q1 2025 Results with Increased Production and Reduced Debt

Cardinal Energy Ltd. reported a 1% increase in production to 22,005 boe/d for the first quarter of 2025, with a notable 18% rise in adjusted funds flow to $62.2 million. The company successfully reduced its bank debt by 90% and continued to invest in its thermal project at Reford, Saskatchewan, which is over 80% complete. Cardinal maintained its dividend strategy, returning $28.7 million to shareholders, which resulted in a total payout ratio reduction of 42% from the previous year.