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

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Cardinal Energy Ltd (CJ.TO)

10.94

-0.05 (0.45%)

as of Aug 7, 2026, 8:00:01 pm Market Open.

275 watching

Investor Insights

Aug 9, 2026, 12:00 am

This summary was created by AI, based on 6 opinions in the last 12 months.

Cardinal Energy Ltd, a conventional oil producer primarily engaged in thermal assets development in Saskatchewan, has garnered a favorable reputation among analysts. Despite initial skepticism regarding the timely delivery of its projects, the company managed to hit capacity on its new plant within just four months. The stock currently trades at a reasonable valuation, with a free cash flow yield of approximately 9% at $80 WTI, and offers a dividend yield of around 6.57%. While debt levels have increased to $215 million, they are deemed manageable at 1x cash flow, indicating no significant leverage concerns. The company's ongoing development in small-scale SAGD technology expresses a positive growth outlook, although analysts suggest caution due to the high payout ratio and a relatively muted growth projection of 5% for the coming year.

Consensus

Positive

Valuation

Fair Value

Similar

BNE.TO

HOLD

He owns it in his RRSP because of the dividend. Company's done a decent job. Need oil prices to go up to bring excitement to the stock price. It was noted that the company has a negative carbon footprint. Yield is around 10%.

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)

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Cardinal Energy Ltd (CJ.TO)