Canacol Energy (CNE) AI Stock Analysis

• Market Cap: C$76.77M
• Dividend Yield: N/A
• Average Volume (3M): 34.02K
• Price to Earnings (P/E): 1.8
• Beta (1Y): 1.29
• Revenue Growth: 3.24%
• EPS Growth: 174.21%
• Country: CA
• Employees: 396
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.57
• Shares Outstanding: 34,119,987
• 10 Day Avg. Volume: 18,395
• 30 Day Avg. Volume: 34,017
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: C$2.50 ▲(12.61% Upside)

Canacol Energy's overall stock score of 51 reflects a challenging financial performance with high leverage and negative profitability metrics. Technical analysis indicates mixed signals, with potential medium-term support but short-term weakness. The stock appears undervalued based on its P/E ratio, which could attract value investors. The earnings call highlighted both operational successes and challenges, contributing to a cautious outlook.

Canacol Energy Business Overview & Revenue Model

Company Description

Canacol Energy Ltd., an oil and gas company, engages in the exploration, development, and production of natural gas in Colombia. As of December 31, 2021, it had a total proved developed producing reserves of 236 billion cubic feet (Bcf) conventional natural gas; a total proved plus probable reserves of 607 Bcf conventional natural gas; and a total proved reserves of 368 Bcf conventional natural gas. The company was incorporated in 1970 and is headquartered in Calgary, Canada.

How the Company Makes Money

Canacol Energy generates revenue primarily through the production and sale of oil and natural gas. The company operates multiple oil fields and has a robust portfolio of exploration blocks that provide potential for future production growth. Key revenue streams include the sale of crude oil to local and international markets, as well as the sale of natural gas, primarily to the Colombian domestic market where demand has been increasing. Additionally, Canacol has entered into strategic partnerships and contracts with various stakeholders, including utility companies, which facilitate stable sales agreements and help secure a consistent revenue flow. Factors contributing to its earnings include the global oil and gas price fluctuations, operational efficiency, and the successful development of its exploration projects.

Canacol Energy Financial Statement Overview

Summary

Canacol Energy faces challenges in revenue growth and profitability, with high leverage posing financial risks. While operational efficiency is evident in EBIT and EBITDA margins, the negative net profit margin and ROE are concerning. Cash flow generation is under pressure, but cash flow ratios remain adequate. The company needs to address revenue growth and leverage to improve its financial health.

Income Statement

Canacol Energy's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data reveals a decline in revenue growth rate by 7.41%, indicating challenges in maintaining sales momentum. The gross profit margin remains strong at 78.29%, but the net profit margin is negative at -1.24%, reflecting profitability issues. EBIT and EBITDA margins are relatively healthy at 50.75% and 72.46%, respectively, suggesting operational efficiency. However, the negative net profit margin is a concern.

Balance Sheet

The balance sheet highlights significant leverage with a debt-to-equity ratio of 2.27, which is high and indicates potential financial risk. The return on equity is negative at -1.35%, pointing to inefficiencies in generating returns for shareholders. The equity ratio stands at 29.58%, showing a moderate level of equity financing. Overall, the high leverage and negative ROE are key weaknesses.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 40.06% in the TTM period, indicating cash generation challenges. The operating cash flow to net income ratio is 1.16, suggesting adequate cash flow relative to net income. The free cash flow to net income ratio is 0.63, showing some ability to convert earnings into cash. Despite the decline in free cash flow growth, the company maintains reasonable cash flow ratios.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	341.19M	375.92M	315.80M	335.71M	310.54M	278.81M
Gross Profit	263.36M	294.13M	239.88M	239.57M	216.59M	212.10M
EBITDA	241.84M	262.20M	183.71M	168.70M	158.30M	172.72M
Net Income	30.57M	-32.73M	86.24M	147.27M	15.18M	-4.74M
Balance Sheet
Total Assets	1.24B	1.22B	1.23B	1.01B	843.76M	749.79M
Cash, Cash Equivalents and Short-Term Investments	37.05M	79.20M	39.42M	60.79M	138.52M	68.57M
Total Debt	726.97M	728.24M	676.43M	512.18M	512.57M	390.07M
Total Liabilities	873.36M	894.64M	881.75M	722.91M	658.63M	542.42M
Stockholders Equity	366.90M	321.14M	351.67M	291.94M	185.13M	207.37M
Cash Flow
Free Cash Flow	29.87M	95.27M	-67.13M	93.77M	66.66M	92.33M
Operating Cash Flow	160.06M	168.04M	95.34M	185.43M	123.81M	152.32M
Investing Cash Flow	-147.54M	-102.25M	-206.11M	-179.91M	-101.48M	-88.96M
Financing Cash Flow	-18.94M	-22.63M	83.83M	-80.67M	51.53M	-33.41M

Canacol Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CNE, the sentiment is Negative. The current price of 2.22 is below the 20-day moving average (MA) of 2.33, below the 50-day MA of 2.37, and below the 200-day MA of 2.90, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 42.55 is Neutral, neither overbought nor oversold. The STOCH value of 33.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CNE.

Canacol Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
QEC	―	C$137.13M	-15.09	-6.39%	―	9.47%	64.01%
CVVY	―	C$247.02M	―	-4.38%	―	-29.38%	93.99%
CNE	―	C$76.77M	1.77	8.72%	―	3.24%	174.21%
CDR	―	C$115.82M	―	-83.41%	―	210.18%	67.13%
TXP	―	$61.36M	63.51	0.90%	―	-21.70%	―
FO	―	C$221.83M	―	-5.25%	―	―	35.56%

Canacol Energy Corporate Events

Canacol Energy Reports Strong Q2 2025 Earnings

In a recent earnings call, Canacol Energy Ltd. presented a strong financial performance, highlighting consecutive profitable quarters and successful drilling operations. However, the company also acknowledged challenges in production and financial obligations. Despite these hurdles, Canacol remains committed to addressing operational issues and focusing on future growth and exploration opportunities.

Canacol Energy Reports Q2 2025 Financial Results

Canacol Energy Ltd. is a natural gas exploration and production company operating primarily in Colombia, with its shares traded on multiple stock exchanges including the Toronto Stock Exchange.

Canacol Energy Reports $13.9 Million Net Income in Q2 2025 Amidst Operational Challenges

Canacol Energy Ltd. reported a net income of $13.9 million for the second quarter of 2025, marking a significant turnaround from a net loss in the previous year. Despite a decrease in natural gas sales volumes and revenues, the company benefited from a non-cash deferred income tax recovery, contributing to the positive net income. The company continues to focus on its exploration and development activities, with successful drilling operations in the Sucre Norte area, which are expected to enhance production capabilities. However, challenges remain with decreased EBITDAX and adjusted funds from operations due to lower sales volumes. The resignation of a senior executive also marks a notable change within the company’s management.

Canacol Energy to Release Q2 2025 Financial Results

Canacol Energy Ltd. announced that it will release its second quarter 2025 financial results on August 7, 2025, after market closure, with a conference call scheduled for August 8, 2025, to discuss the results. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and operational progress, which are crucial for assessing its market positioning and future prospects.