Cardinal Energy Ltd (CJ.TO) Buy, Sell or Hold

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Cardinal Energy Ltd (CJ.TO)

10.75

-0.02 (0.19%)

as of Jul 20, 2026, 8:00:00 pm Market Open.

267 watching

Investor Insights

Jul 19, 2026, 12:00 am

This summary was created by AI, based on 5 opinions in the last 12 months.

Cardinal Energy Ltd (CJ-T) is currently navigating a mixed landscape, characterized by a favorable outlook driven by oil price dynamics and strategic advancements in their SAGD operations. The company's dividend yield, which hovers around 7.8% to just under 9%, has raised concerns regarding sustainability, particularly as the payout ratio stands high at 88%. Despite this, experts suggest that the current dividend is becoming more secure following recent capital expenditures. However, with substantial debt at $215M, albeit at a manageable 1X cash flow ratio, there are mixed sentiments regarding growth potential, anticipated to be only around 5% this year. Moreover, the company is beneficially leveraged to rising oil prices but requires a bullish stance on oil to realize significant gains over the coming years.

Consensus

Valuation

Fair Value

Similar

Crescent Point, CPG

HOLD

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

CJ is always going to be cyclical, but it has a very strong balance sheet and good cash flow. Dividend payout ratio is less than 30%, but cash flow can change quickly if commodity prices drop. But we see no real problem with the dividend, but it is of course not guaranteed, and with 10%+ yield investors do seem concerned. While we are not overly worried, we would not use the word 'safe' for the dividend of any oil and gas stock. Cash flow and earnings will drop this year on lower pricing. The stock is cheap, but with little growth expected we would rate it a HOLD and not a BUY.
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BUY

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

EPS of 10c missed estimates of 15.3c. Revenue of $135M missed estimates of $136.6M. Production was 21.7K b/d day and free cash flow was $28.8M. Its 2023 drill program will renew in the 2Q. Production rose 5%. The balance sheet is now nearly debt free. Earnings are expected to fall this year. The stock is very cheap, but RBC seems to be taking a conservative stance in case prices fall in a recession. We think the 7X valuation already reflects most risk. Payout ratio is <25%, though at an 11% yield investors seem unduly concerned on the dividend.
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BUY ON WEAKNESS

Exposure to medium and heavy grade oil.
Small cap that not many large investors care about.
Dividend is 10% and is very strong (sustainable above $70).
Older assets with abandonment liabilities.
Good name for next 1-2 years if you want yield.

BUY

Very good name with strong yield. Good name for retail investors. Inventory light with higher operating costs. If believe in $80 + oil price, you will benefit with large torque in prices. Medium to heavy grade oil.

SELL ON STRENGTH

Top in the stock is $11.76. When it gets there, sell. Again, you missed 98% of the gains if you're only looking at it now.

Unspecified

It is more on the oil side. They said they would reduce debt and they did. Also just distributed a large percentage of free cash flow. It is a good dividend name to own. A $1.3 billion market cap makes it a little small so he prefers others.

BUY

Very well managed company that is returning capital to shareholders. Felt better opportunities exist when sold shares. Will be debt free now or by the end of the year. Expecting a 5x multiple on the share price.

PAST TOP PICK

(A Top Pick Jul 20/21, Up 174%) Has since sold shares. Company is doing exactly what is hoping for in other energy companies. Currently trading at premium to other energy companies in the market. Think there are better opportunities out there. Expecting a 5x multiple, or a $14 share price.

BUY ON WEAKNESS

Great company that is well run, and is returning capital to shareholders. Was 2nd largest shareholder after Murray Edwards. Seeing more opportunity in other energy companies. Company trading a 3x cash flow. Expecting 4x multiple on share price(15% upside).

BUY

This morning, their results in Q3 were fine. They plan to lower debt, and then give 50% free cashflow to dividend and then 50% to paying down debt. They could pay a 10% dividend at $70 and 15% dividend at $80. Not many specialists that are willing to go in the small cap space. Trading at 3x at $70. Probably 70% upside potential.

TOP PICK

Owns 8% of the company and is the second largest holder right now. Not the most exciting holdings but they are very profitable and gives good cashflow. Well over 10 years of development drilling. 1.9x EV to 22 cashflow and 39% free cashflow yield. Expects them to initiate a healthy dividend next year. Net zero emitter. Once the balance sheet is brought back to shape, will be in a good position. (Analysts’ price target is $4.60)

BUY

Bought 7% of the company. A name where you get mature assets with strong leverage to a rising oil price. Strong dividends and share buy backs. At 4x multiple at $70 oil, it would trade at $5.60 share price, a 67% upside potential.

TOP PICK

Bought strategic positions in this company. Trading just under 3x cashflow at $60 oil. Higher operating costs. A boring play but at $70 oil, they generate gobs of free cashflow. De-leveraging and balance sheet is improving. Looking for a dividend in the future. Share buy back and acquisitions will add attractiveness. (Analysts’ price target is $2.65)

TOP PICK

Had a convertible note that was converted to stocks so bought it. 7% stake in the company. 2.3x cashflow at $60 oil. Trading at 34% free cashflow yield. Not the most exciting asset, but generates a lot of free cash. They could reinstate their dividend. (Analysts’ price target is $2.65)

BUY

Likes it. Mostly owned by retail investors, so he can't find an institution to buy a lot of shares from (for his fund). He price-targets $35 share price and 120% upside.

Showing 16 to 30 of 140 entries

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Cardinal Energy Ltd (CJ.TO)