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 85 (better than 85% compared with investment alternatives), Capricorn Energy (Oil & Gas Production, United Kingdom) shares have much better financial characteristics than comparable stocks. Shares of Capricorn Energy are low in value (priced high) with a consolidated Value Rank of 40 (worse than 60% of alternatives). But they show above-average growth (Growth Rank of 96) and are safely financed (Safety Rank of 62, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 85, is a strong buy recommendation based on Capricorn Energy's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Capricorn Energy exhibits low value (Obermatt Value Rank of 40), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 96). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 62) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). 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 | Small |
19-Dec-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 |
|
40 |
|
| GROWTH | ||||||||
| GROWTH | 31 |
|
55 |
|
13 |
|
96 |
|
| SAFETY | ||||||||
| SAFETY | 97 |
|
61 |
|
72 |
|
62 |
|
| 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 85 (better than 85% compared with investment alternatives), Capricorn Energy (Oil & Gas Production, United Kingdom) shares have much better financial characteristics than comparable stocks. Shares of Capricorn Energy are low in value (priced high) with a consolidated Value Rank of 40 (worse than 60% of alternatives). But they show above-average growth (Growth Rank of 96) and are safely financed (Safety Rank of 62, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 85, is a strong buy recommendation based on Capricorn Energy's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Capricorn Energy exhibits low value (Obermatt Value Rank of 40), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 96). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 62) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). 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 |
|
40 |
|
| GROWTH | ||||||||
| GROWTH | 31 |
|
55 |
|
13 |
|
96 |
|
| SAFETY | ||||||||
| SAFETY | 97 |
|
61 |
|
72 |
|
62 |
|
| COMBINED | ||||||||
| COMBINED | 38 |
|
28 |
|
49 |
|
85 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 40 (worse than 60% compared with alternatives), Capricorn Energy shares are more expensive than the average comparable stock. 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 98% of comparable companies (a Dividend Yield rank of 98), 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 65, which means that the stock price is lower compared with invested capital than for 65% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 19 which means that the stock price compared with what market professionals expect for future profits is higher than for 81% 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 40, is a hold 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 |
|
19 |
|
| 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 |
|
65 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
1 |
|
74 |
|
98 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 3 |
|
1 |
|
63 |
|
40 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 96 (better than 96% compared with alternatives) for 2024, Capricorn Energy shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Capricorn Energy. Profit Growth has a rank of 78 which means that currently professionals expect the company to grow its profits more than 78% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 94, and Stock Returns has a rank of 100 which means that the stock returns have recently been above 100% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 46 (54% of its competitors are better). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 96, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. 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. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 100 |
|
94 |
|
38 |
|
46 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 2 |
|
56 |
|
1 |
|
78 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
27 |
|
50 |
|
94 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 32 |
|
33 |
|
51 |
|
100 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 31 |
|
55 |
|
13 |
|
96 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 62 (better than 62% 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 92, 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 92% of its competitors. Liquidity is at 6, meaning that the company generates less profit to service its debt than 94% 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 62 (better than 62% 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 |
|
92 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 3 |
|
4 |
|
4 |
|
6 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 97 |
|
61 |
|
72 |
|
62 |
|
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 |
|
Free stock analysis by the purely fact based Obermatt Method for Capricorn Energy from December 19, 2024.
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