CANADIAN NATURAL RESOURCES (CNQ.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CNQ - CA1363851017 - Common Stock
48.89 CAD
-0.86 (-1.73%)
We assign a fundamental rating of 5 out of 10 to CNQ. CNQ was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. While CNQ belongs to the best of the industry regarding profitability, there are concerns on its financial health. CNQ has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year CNQ was profitable.
- In the past year CNQ had a positive cash flow from operations.
- Of the past 5 years CNQ 4 years were profitable.
- Each year in the past 5 years CNQ had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of CNQ (7.78%) is better than 91.59% of its industry peers.
- CNQ's Return On Equity of 16.45% is amongst the best of the industry. CNQ outperforms 93.93% of its industry peers.
- CNQ has a Return On Invested Capital of 10.43%. This is amongst the best in the industry. CNQ outperforms 94.86% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CNQ is significantly above the industry average of 6.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.78% | ||
| ROE | 16.45% | ||
| ROIC | 10.43% |
ROA(3y)10.79%
ROA(5y)8.36%
ROE(3y)21.6%
ROE(5y)16.84%
ROIC(3y)13.06%
ROIC(5y)N/A
1.3 Margins
- With an excellent Profit Margin value of 17.23%, CNQ belongs to the best of the industry, outperforming 80.37% of the companies in the same industry.
- In the last couple of years the Profit Margin of CNQ has declined.
- Looking at the Operating Margin, with a value of 26.62%, CNQ belongs to the top of the industry, outperforming 81.78% of the companies in the same industry.
- CNQ's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 48.85%, CNQ is doing good in the industry, outperforming 74.77% of the companies in the same industry.
- CNQ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.62% | ||
| PM (TTM) | 17.23% | ||
| GM | 48.85% |
OM growth 3Y-4.83%
OM growth 5Y2.21%
PM growth 3Y-12.43%
PM growth 5Y-6.28%
GM growth 3Y-3.13%
GM growth 5Y-1.06%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CNQ is still creating some value.
- The number of shares outstanding for CNQ has been reduced compared to 1 year ago.
- The number of shares outstanding for CNQ has been reduced compared to 5 years ago.
- CNQ has a worse debt/assets ratio than last year.
2.2 Solvency
- CNQ has an Altman-Z score of 2.66. This is not the best score and indicates that CNQ is in the grey zone with still only limited risk for bankruptcy at the moment.
- CNQ's Altman-Z score of 2.66 is fine compared to the rest of the industry. CNQ outperforms 74.77% of its industry peers.
- A Debt/Equity ratio of 0.44 indicates that CNQ is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.44, CNQ perfoms like the industry average, outperforming 52.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.66 |
ROIC/WACC1.42
WACC7.35%
2.3 Liquidity
- CNQ has a Current Ratio of 0.86. This is a bad value and indicates that CNQ is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.86, CNQ perfoms like the industry average, outperforming 59.81% of the companies in the same industry.
- CNQ has a Quick Ratio of 0.86. This is a bad value and indicates that CNQ is not financially healthy enough and could expect problems in meeting its short term obligations.
- CNQ's Quick ratio of 0.53 is on the low side compared to the rest of the industry. CNQ is outperformed by 62.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
- CNQ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.21%.
- CNQ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.79% yearly.
- Looking at the last year, CNQ shows a quite strong growth in Revenue. The Revenue has grown by 8.06% in the last year.
- Measured over the past years, CNQ shows a quite strong growth in Revenue. The Revenue has been growing by 9.29% on average per year.
EPS 1Y (TTM)-1.21%
EPS 3Y4.92%
EPS 5Y16.79%
EPS Q2Q%-11.34%
Revenue 1Y (TTM)8.06%
Revenue growth 3Y5.86%
Revenue growth 5Y9.29%
Sales Q2Q%7.01%
3.2 Future
- Based on estimates for the next years, CNQ will show a small growth in Earnings Per Share. The EPS will grow by 0.19% on average per year.
- Based on estimates for the next years, CNQ will show a small growth in Revenue. The Revenue will grow by 1.12% on average per year.
EPS Next Y-1.65%
EPS Next 2Y-4.46%
EPS Next 3Y4.48%
EPS Next 5Y0.19%
Revenue Next Year6.9%
Revenue Next 2Y1.78%
Revenue Next 3Y1.68%
Revenue Next 5Y1.12%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 13.36, which indicates a correct valuation of CNQ.
- Compared to the rest of the industry, the Price/Earnings ratio of CNQ indicates a somewhat cheap valuation: CNQ is cheaper than 70.56% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of CNQ to the average of the S&P500 Index (27.32), we can say CNQ is valued rather cheaply.
- A Price/Forward Earnings ratio of 15.46 indicates a correct valuation of CNQ.
- 64.49% of the companies in the same industry are more expensive than CNQ, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, CNQ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.36 | ||
| Fwd PE | 15.46 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNQ indicates a rather cheap valuation: CNQ is cheaper than 85.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.33 |
4.3 Compensation for Growth
- CNQ has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.8
EPS Next 2Y-4.46%
EPS Next 3Y4.48%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.95%, CNQ is a good candidate for dividend investing.
- CNQ's Dividend Yield is a higher than the industry average which is at 2.82.
- CNQ's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.95% |
5.2 History
- On average, the dividend of CNQ grows each year by 23.37%, which is quite nice.
- CNQ has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of CNQ decreased recently.
Dividend Growth(5Y)23.37%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 71.45% of the earnings are spent on dividend by CNQ. This is not a sustainable payout ratio.
- CNQ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP71.45%
EPS Next 2Y-4.46%
EPS Next 3Y4.48%
CANADIAN NATURAL RESOURCES / CNQ.CA FAQ
Can you provide the ChartMill fundamental rating for CANADIAN NATURAL RESOURCES?
ChartMill assigns a fundamental rating of 5 / 10 to CNQ.CA.
Can you provide the valuation status for CANADIAN NATURAL RESOURCES?
ChartMill assigns a valuation rating of 5 / 10 to CANADIAN NATURAL RESOURCES (CNQ.CA). This can be considered as Fairly Valued.
What is the profitability of CNQ stock?
CANADIAN NATURAL RESOURCES (CNQ.CA) has a profitability rating of 8 / 10.
What are the PE and PB ratios of CANADIAN NATURAL RESOURCES (CNQ.CA) stock?
The Price/Earnings (PE) ratio for CANADIAN NATURAL RESOURCES (CNQ.CA) is 13.36 and the Price/Book (PB) ratio is 2.52.
What is the financial health of CANADIAN NATURAL RESOURCES (CNQ.CA) stock?
The financial health rating of CANADIAN NATURAL RESOURCES (CNQ.CA) is 3 / 10.