Canacol Energy (CNE) AI Stock Analysis

• Market Cap: $76.09M
• Dividend Yield: 6.77%
• Average Volume (3M): 25.25K
• Price to Earnings (P/E): 4.4
• Beta (1Y): 1.11
• Revenue Growth: 17.52%
• EPS Growth: -105.04%
• Country: CA
• Employees: 396
• Sector: Energy
• Sector Strength: 44
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.28
• Shares Outstanding: 34,119,987
• 10 Day Avg. Volume: 30,292
• 30 Day Avg. Volume: 25,255
• PEG Ratio: <0.01
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.51
• Enterprise Value/Market Cap: 9.24
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 2.39
• Enterprise Value/Ebitda: 0.74
• 1Y Price Target: $3.00
• Price Target Upside: 34.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: C$2.50 ▲(12.11%Upside)

Canacol Energy's score is driven by operational efficiency and positive corporate events, but is offset by bearish technical indicators, negative valuation metrics, and financial instability due to high leverage and net losses.

Canacol Energy Business Overview & Revenue Model

Company Description

Canacol Energy Ltd. (CNE) is a leading natural gas exploration and production company headquartered in Canada, with primary operations in Colombia. The company focuses on the exploration, development, and commercialization of natural gas, serving the energy needs of industrial, commercial, and residential customers. Canacol Energy strives to provide reliable and sustainable energy solutions, leveraging its expertise in the hydrocarbon industry to supply the growing energy market in Latin America.

How the Company Makes Money

Canacol Energy generates revenue primarily through the exploration, production, and sale of natural gas. The company's key revenue streams include long-term contracts with industrial and commercial customers, which provide a stable income from the sale of natural gas. Additionally, Canacol Energy invests in infrastructure development to enhance its production capacity and distribution network, ensuring efficient delivery of natural gas to its clients. Strategic partnerships with local and international energy firms also contribute to its earnings, as these collaborations facilitate market expansion and operational efficiency. The company benefits from favorable market conditions in Colombia, where demand for natural gas is rising due to economic development and a push for cleaner energy alternatives.

Canacol Energy Financial Statement Overview

Summary

Canacol Energy shows operational efficiency through EBITDA but faces challenges with net losses and high leverage, impacting long-term stability.

Income Statement

Canacol Energy has experienced mixed revenue growth with a decline from 2022 to 2023 but an increase in 2024. The gross profit margin is strong, reflecting efficient production. However, the net profit margin has seen a downturn, culminating in a net loss in 2024, indicating challenges in managing expenses or other costs. EBIT margin is absent in 2024, but EBITDA margin remains robust, suggesting good operational efficiency despite the lack of EBIT data.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage which could pose risks in adverse market conditions. The return on equity (ROE) has turned negative in 2024 due to net losses, impacting shareholder returns. The equity ratio is moderate, suggesting the company is neither overly reliant on debt nor excessively equity-funded.

Cash Flow

Operating cash flow has improved significantly, demonstrating strong cash generation capabilities. Free cash flow growth is positive, indicating better management of capital expenditures. However, the free cash flow to net income ratio is negative due to net losses, highlighting potential issues in translating profits into cash.

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

Canacol Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 2.23 is below the 20-day moving average (MA) of 2.48, below the 50-day MA of 2.65, and below the 200-day MA of 3.32, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 29.93 is Positive, neither overbought nor oversold. The STOCH value of 22.93 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 *	67 Neutral	$15.20B	9.67	6.33%	6.14%	4.05%	-66.98%
CDR	63 Neutral	C$138.36M	―	-52.56%	―	968.30%	81.49%
CNE	60 Neutral	$76.09M	4.40	-1.29%	6.77%	17.52%	-105.04%
TXP	58 Neutral	C$70.50M	9.96	7.06%	―	-6.52%	―
QEC	55 Neutral	C$124.27M	―	-5.05%	―	-0.03%	71.16%
CVVY	51 Neutral	C$130.69M	―	-21.67%	―	-42.15%	-117.23%
FO	36 Underperform	C$138.64M	―	-6.26%	―	―	13.95%

Canacol Energy Corporate Events

Canacol Energy Provides Update on Exploration Drilling Activities

Canacol Energy Ltd. has provided an update on its recent exploration drilling activities. The Natilla-2 ST3 well was temporarily abandoned due to well bore instability, with plans to either re-enter the well or drill a new Natilla-3 well. The Borbon-1 and Zamia-1 wells have been successfully drilled and are expected to begin production in August 2025, with anticipated outputs of 10-12 MMscfpd and 8-10 MMscfpd, respectively. The Palomino-1 well is set to begin drilling soon, and the Fresa-4 well is currently being drilled, targeting gas-charged sandstones. These developments are expected to enhance Canacol’s production capabilities and strengthen its position in the Colombian natural gas market.

The most recent analyst rating on (TSE:CNE) stock is a Hold with a C$5.50 price target. To see the full list of analyst forecasts on Canacol Energy stock, see the TSE:CNE Stock Forecast page.

Canacol Energy Announces Board Elections and Strategic Approvals

Canacol Energy Ltd. announced the results of its annual general and special meeting held in Bogotá, Colombia, where shareholders elected a new board of directors, appointed PricewaterhouseCoopers LLP as auditors, and approved unallocated awards under the company’s long-term incentive plan. These decisions are expected to strengthen Canacol’s governance and operational strategies, potentially enhancing its market position and stakeholder confidence.

The most recent analyst rating on (TSE:CNE) stock is a Hold with a C$5.50 price target. To see the full list of analyst forecasts on Canacol Energy stock, see the TSE:CNE Stock Forecast page.

Canacol Energy Reports Increased Natural Gas Netback Amid Strategic Expansion Plans

Canacol Energy Ltd. reported a 12% increase in natural gas netback for Q1 2025, driven by higher average sales prices despite a decrease in sales volumes. The company is focusing on maintaining and growing its EBITDA and reserves through investments in drilling and new facilities, while also exploring high-impact opportunities in the Lower Magdalena Valley. Canacol plans to optimize production and increase reserves with a strategic drilling program, aiming to leverage strong gas market conditions throughout 2025.

Canacol Energy to Release Q1 2025 Financial Results

Canacol Energy Ltd. announced that it will release its first quarter 2025 financial results on May 8, 2025, after market close, with a subsequent conference call scheduled for May 9, 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.