For those who appreciate value investing, NYSE:CNQ is a compelling option with its solid fundamentals.

Last update: Jun 13, 2024

Our stock screener has spotted CANADIAN NATURAL RESOURCES (NYSE:CNQ) as an undervalued stock with solid fundamentals. NYSE:CNQ shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Valuation Insights: NYSE:CNQ

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:CNQ scores a 8 out of 10:

Based on the Price/Earnings ratio of 6.54, the valuation of CNQ can be described as very cheap.
Based on the Price/Earnings ratio, CNQ is valued cheaply inside the industry as 80.57% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.40, CNQ is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.30, the valuation of CNQ can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CNQ indicates a rather cheap valuation: CNQ is cheaper than 89.57% of the companies listed in the same industry.
CNQ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.03.
Based on the Enterprise Value to EBITDA ratio, CNQ is valued a bit cheaper than 79.15% of the companies in the same industry.
CNQ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CNQ is cheaper than 86.73% of the companies in the same industry.
CNQ has a very decent profitability rating, which may justify a higher PE ratio.

Profitability Examination for NYSE:CNQ

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:CNQ was assigned a score of 6 for profitability:

CNQ's Return On Assets of 9.77% is fine compared to the rest of the industry. CNQ outperforms 68.72% of its industry peers.
The Return On Equity of CNQ (18.78%) is better than 63.03% of its industry peers.
CNQ has a better Return On Invested Capital (11.63%) than 65.88% of its industry peers.
With a decent Profit Margin value of 20.86%, CNQ is doing good in the industry, outperforming 63.03% of the companies in the same industry.
CNQ's Profit Margin has improved in the last couple of years.
CNQ's Operating Margin has improved in the last couple of years.

Understanding NYSE:CNQ's Health Score

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:CNQ scores a 6 out of 10:

CNQ has a Altman-Z score of 2.25. This is in the better half of the industry: CNQ outperforms 62.56% of its industry peers.
The Debt to FCF ratio of CNQ is 1.37, which is an excellent value as it means it would take CNQ, only 1.37 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CNQ (1.37) is better than 82.94% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that CNQ is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.27, CNQ is in the better half of the industry, outperforming 64.45% of the companies in the same industry.

What does the Growth looks like for NYSE:CNQ

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:CNQ scores a 4 out of 10:

CNQ shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.97% yearly.
The Revenue has been growing by 11.33% on average over the past years. This is quite good.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of CNQ

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.