CANADIAN NATURAL RESOURCES (CNQ.CA) Stock Fundamental Analysis
TSX:CNQ - Toronto Stock Exchange - CA1363851017 - Common Stock - Currency: CAD
Overall CNQ gets a fundamental rating of 6 out of 10. We evaluated CNQ against 221 industry peers in the Oil, Gas & Consumable Fuels industry. CNQ scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CNQ has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally CNQ also has an excellent dividend rating. These ratings would make CNQ suitable for dividend investing!
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.
In multiple years CNQ reported negative net income over the last 5 years.
Of the past 5 years CNQ 4 years had a positive operating cash flow.
1.2 Ratios
CNQ's Return On Assets of 10.12% is amongst the best of the industry. CNQ outperforms 92.31% of its industry peers.
CNQ has a Return On Equity of 19.04%. This is amongst the best in the industry. CNQ outperforms 95.02% of its industry peers.
With an excellent Return On Invested Capital value of 11.94%, CNQ belongs to the best of the industry, outperforming 93.21% of the companies in the same industry.
CNQ had an Average Return On Invested Capital over the past 3 years of 13.64%. This is significantly above the industry average of 7.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.12% | ||
| ROE | 19.04% | ||
| ROIC | 11.94% |
ROA(3y)11.73%
ROA(5y)8.31%
ROE(3y)23.35%
ROE(5y)16.84%
ROIC(3y)13.64%
ROIC(5y)N/A
1.3 Margins
CNQ has a better Profit Margin (21.25%) than 81.45% of its industry peers.
CNQ's Profit Margin has improved in the last couple of years.
CNQ's Operating Margin of 27.86% is amongst the best of the industry. CNQ outperforms 80.54% of its industry peers.
In the last couple of years the Operating Margin of CNQ has grown nicely.
CNQ has a Gross Margin of 50.27%. This is in the better half of the industry: CNQ outperforms 71.04% of its industry peers.
In the last couple of years the Gross Margin of CNQ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.86% | ||
| PM (TTM) | 21.25% | ||
| GM | 50.27% |
OM growth 3YN/A
OM growth 5Y4.76%
PM growth 3YN/A
PM growth 5Y13.19%
GM growth 3Y11.78%
GM growth 5Y0.49%
2. Health
2.1 Basic Checks
CNQ has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
There is no outstanding debt for CNQ. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
CNQ has an Altman-Z score of 2.89. 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 has a Altman-Z score of 2.89. This is amongst the best in the industry. CNQ outperforms 82.35% of its industry peers.
CNQ has a debt to FCF ratio of 1.19. This is a very positive value and a sign of high solvency as it would only need 1.19 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.19, CNQ belongs to the top of the industry, outperforming 91.40% of the companies in the same industry.
CNQ has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.24, CNQ is doing good in the industry, outperforming 60.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 2.89 |
ROIC/WACC1.61
WACC7.4%
2.3 Liquidity
A Current Ratio of 0.84 indicates that CNQ may have some problems paying its short term obligations.
CNQ has a Current ratio (0.84) which is comparable to the rest of the industry.
A Quick Ratio of 0.53 indicates that CNQ may have some problems paying its short term obligations.
CNQ's Quick ratio of 0.53 is in line compared to the rest of the industry. CNQ outperforms 47.51% of its industry peers.
The current and quick ratio evaluation for CNQ is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
CNQ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.24%.
CNQ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.90% yearly.
EPS 1Y (TTM)-10.24%
EPS 3Y5.1%
EPS 5Y16.9%
EPS Q2Q%-19.02%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.7%
3.2 Future
CNQ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.59% yearly.
The Revenue is expected to grow by 0.17% on average over the next years.
EPS Next Y4.62%
EPS Next 2Y8.16%
EPS Next 3Y22.77%
EPS Next 5Y11.59%
Revenue Next Year5.84%
Revenue Next 2Y3.25%
Revenue Next 3Y-0.12%
Revenue Next 5Y0.17%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
CNQ is valuated reasonably with a Price/Earnings ratio of 11.71.
Compared to the rest of the industry, the Price/Earnings ratio of CNQ indicates a somewhat cheap valuation: CNQ is cheaper than 66.52% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CNQ to the average of the S&P500 Index (29.35), we can say CNQ is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.18, the valuation of CNQ can be described as very reasonable.
CNQ's Price/Forward Earnings is on the same level as the industry average.
CNQ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.71 | ||
| Fwd PE | 11.18 |
4.2 Price Multiples
76.92% of the companies in the same industry are more expensive than CNQ, based on the Enterprise Value to EBITDA ratio.
75.11% of the companies in the same industry are more expensive than CNQ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.81 | ||
| EV/EBITDA | 5.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CNQ does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of CNQ may justify a higher PE ratio.
CNQ's earnings are expected to grow with 22.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.54
PEG (5Y)0.69
EPS Next 2Y8.16%
EPS Next 3Y22.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.88%, CNQ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.64, CNQ pays a better dividend. On top of this CNQ pays more dividend than 81.90% of the companies listed in the same industry.
CNQ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
5.2 History
The dividend of CNQ is nicely growing with an annual growth rate of 22.66%!
CNQ has paid a dividend for at least 10 years, which is a reliable track record.
CNQ has decreased its dividend recently.
Dividend Growth(5Y)22.66%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
56.60% of the earnings are spent on dividend by CNQ. This is a bit on the high side, but may be sustainable.
CNQ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP56.6%
EPS Next 2Y8.16%
EPS Next 3Y22.77%
TSX:CNQ (3/7/2025, 7:00:00 PM)
40.74
+0.79 (+1.98%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners74.44%
Inst Owner ChangeN/A
Ins Owners4.4%
Ins Owner ChangeN/A
Market Cap85.57B
Analysts71.2
Price Target56.41 (38.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
Yearly Dividend1.79
Dividend Growth(5Y)22.66%
DP56.6%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.21%
Min EPS beat(2)6.58%
Max EPS beat(2)7.83%
EPS beat(4)3
Avg EPS beat(4)3.69%
Min EPS beat(4)-7.49%
Max EPS beat(4)7.83%
EPS beat(8)5
Avg EPS beat(8)2.1%
EPS beat(12)9
Avg EPS beat(12)3.73%
EPS beat(16)13
Avg EPS beat(16)6.35%
Revenue beat(2)1
Avg Revenue beat(2)0.53%
Min Revenue beat(2)-4.04%
Max Revenue beat(2)5.1%
Revenue beat(4)2
Avg Revenue beat(4)0%
Min Revenue beat(4)-4.04%
Max Revenue beat(4)5.1%
Revenue beat(8)6
Avg Revenue beat(8)1.79%
Revenue beat(12)10
Avg Revenue beat(12)6.96%
Revenue beat(16)14
Avg Revenue beat(16)6.47%
PT rev (1m)-1.19%
PT rev (3m)-1.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.1%
EPS NY rev (1m)-2.61%
EPS NY rev (3m)1.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.16%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.71 | ||
| Fwd PE | 11.18 | ||
| P/S | 2.39 | ||
| P/FCF | 8.81 | ||
| P/OCF | 5.79 | ||
| P/B | 2.14 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 5.74 |
EPS(TTM)3.48
EY8.54%
EPS(NY)3.64
Fwd EY8.94%
FCF(TTM)4.62
FCFY11.35%
OCF(TTM)7.03
OCFY17.26%
SpS17.02
BVpS18.99
TBVpS18.99
PEG (NY)2.54
PEG (5Y)0.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.12% | ||
| ROE | 19.04% | ||
| ROCE | 14.85% | ||
| ROIC | 11.94% | ||
| ROICexc | 12.07% | ||
| ROICexgc | 12.07% | ||
| OM | 27.86% | ||
| PM (TTM) | 21.25% | ||
| GM | 50.27% | ||
| FCFM | 27.17% |
ROA(3y)11.73%
ROA(5y)8.31%
ROE(3y)23.35%
ROE(5y)16.84%
ROIC(3y)13.64%
ROIC(5y)N/A
ROICexc(3y)13.9%
ROICexc(5y)N/A
ROICexgc(3y)13.9%
ROICexgc(5y)N/A
ROCE(3y)16.96%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y16.3%
ROICexc growth 3YN/A
ROICexc growth 5Y16.3%
OM growth 3YN/A
OM growth 5Y4.76%
PM growth 3YN/A
PM growth 5Y13.19%
GM growth 3Y11.78%
GM growth 5Y0.49%
F-Score8
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.19 | ||
| Debt/EBITDA | 0.57 | ||
| Cap/Depr | 73.94% | ||
| Cap/Sales | 14.15% | ||
| Interest Coverage | 16.79 | ||
| Cash Conversion | 87.92% | ||
| Profit Quality | 127.86% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 2.89 |
F-Score8
WACC7.4%
ROIC/WACC1.61
Cap/Depr(3y)74.96%
Cap/Depr(5y)66.46%
Cap/Sales(3y)13.58%
Cap/Sales(5y)14.33%
Profit Quality(3y)117.01%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.24%
EPS 3Y5.1%
EPS 5Y16.9%
EPS Q2Q%-19.02%
EPS Next Y4.62%
EPS Next 2Y8.16%
EPS Next 3Y22.77%
EPS Next 5Y11.59%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.7%
Revenue Next Year5.84%
Revenue Next 2Y3.25%
Revenue Next 3Y-0.12%
Revenue Next 5Y0.17%
EBIT growth 1Y13.34%
EBIT growth 3YN/A
EBIT growth 5Y16.63%
EBIT Next Year66.74%
EBIT Next 3Y23.85%
EBIT Next 5Y13.03%
FCF growth 1Y-31.14%
FCF growth 3Y51.19%
FCF growth 5Y5.56%
OCF growth 1Y-24.49%
OCF growth 3Y37.87%
OCF growth 5Y4.07%