Fact based stock research
Capricorn Energy (LSE:CNE)
GB00BN0SMB92
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Capricorn Energy stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 23 (worse than 77% compared with investment alternatives), Capricorn Energy (Oil & Gas Production, United Kingdom) shares have lower financial characteristics compared with similar stocks. Shares of Capricorn Energy are a good value (attractively priced) with a consolidated Value Rank of 59 (better than 59% of alternatives), are safely financed (Safety Rank of 67, which means low debt burdens), but show below-average growth (Growth Rank of 3). ...read more
RECOMMENDATION: A Combined Rank of 23, is a sell recommendation based on Capricorn Energy's financial characteristics. As the company Capricorn Energy's key financial metrics exhibit good value (Obermatt Value Rank of 59) but low growth (Obermatt Growth Rank of 3) while being safely financed (Obermatt Safety Rank of 67), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 59% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | United Kingdom |
| Industry | Oil & Gas Production |
| Index | FTSE All Shares, FTSE 250, FTSE 350 |
| Size class | X-Small |
18-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Capricorn Energy
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 3 |
|
1 |
|
63 |
|
59 |
|
| GROWTH | ||||||||
| GROWTH | 31 |
|
55 |
|
13 |
|
3 |
|
| SAFETY | ||||||||
| SAFETY | 97 |
|
61 |
|
72 |
|
67 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
13 |
|
13 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
17 |
|
26 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 23 (worse than 77% compared with investment alternatives), Capricorn Energy (Oil & Gas Production, United Kingdom) shares have lower financial characteristics compared with similar stocks. Shares of Capricorn Energy are a good value (attractively priced) with a consolidated Value Rank of 59 (better than 59% of alternatives), are safely financed (Safety Rank of 67, which means low debt burdens), but show below-average growth (Growth Rank of 3). ...read more
RECOMMENDATION: A Combined Rank of 23, is a sell recommendation based on Capricorn Energy's financial characteristics. As the company Capricorn Energy's key financial metrics exhibit good value (Obermatt Value Rank of 59) but low growth (Obermatt Growth Rank of 3) while being safely financed (Obermatt Safety Rank of 67), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 59% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 3 |
|
1 |
|
63 |
|
59 |
|
| GROWTH | ||||||||
| GROWTH | 31 |
|
55 |
|
13 |
|
3 |
|
| SAFETY | ||||||||
| SAFETY | 97 |
|
61 |
|
72 |
|
67 |
|
| COMBINED | ||||||||
| COMBINED | 38 |
|
28 |
|
49 |
|
23 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 59 (better than 59% compared with alternatives), Capricorn Energy shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Capricorn Energy. Expected dividend yields are higher than for 52% of comparable companies (a Dividend Yield rank of 52), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 86, which means that the stock price is lower compared with invested capital than for 86% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 39 which means that the stock price compared with what market professionals expect for future profits is higher than for 61% of comparable companies, indicating a low value concerning Capricorn Energy's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for Capricorn Energy with a rank of 1. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 99% of comparable companies, indicating a low value concerning Capricorn Energy's profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 59, is a buy recommendation based on Capricorn Energy's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, Capricorn Energy may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 3 |
|
5 |
|
58 |
|
39 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 14 |
|
3 |
|
3 |
|
1 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 36 |
|
35 |
|
96 |
|
86 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
1 |
|
74 |
|
52 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 3 |
|
1 |
|
63 |
|
59 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 3 (better than 3% compared with alternatives), Capricorn Energy shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four metrics below average for Capricorn Energy. While Profit Growth has a good rank of 76, as professionals currently expect the company to grow its profits more than 76% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 1, which means that currently professionals expect the company to grow less than 99% of its competitors, while Capital Growth has a rank of 4 and Stock Returns have been below market median, with a rank of 11 (89% of alternative investments were better). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 3, is a sell recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 100 |
|
94 |
|
38 |
|
1 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 2 |
|
56 |
|
1 |
|
76 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
27 |
|
50 |
|
4 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 32 |
|
33 |
|
51 |
|
11 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 31 |
|
55 |
|
13 |
|
3 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 67 (better than 67% compared with alternatives), the company Capricorn Energy has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Capricorn Energy is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Capricorn Energy.Leverage is at 71, meaning the company has a below-average debt-to-equity ratio. It has less debt than 71% of its competitors.Refinancing is at a rank of 98, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 98% of its competitors. Liquidity is at 4, meaning that the company generates less profit to service its debt than 96% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 67 (better than 67% compared with alternatives), Capricorn Energy has a financing structure that is safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Capricorn Energy more challenging. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 84 |
|
80 |
|
84 |
|
71 |
|
| REFINANCING | ||||||||
| REFINANCING | 91 |
|
79 |
|
99 |
|
98 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 3 |
|
4 |
|
4 |
|
4 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 97 |
|
61 |
|
72 |
|
67 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
42 |
|
66 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
37 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
30 |
|
1 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
32 |
|
4 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
13 |
|
13 |
|
new |
|
Stock analysis by the purely fact based Obermatt Method for Capricorn Energy from April 18, 2024.
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