CANADIAN NATURAL RESOURCES (CNQ.CA) Stock Fundamental Analysis
TSX:CNQ - Toronto Stock Exchange - CA1363851017 - Common Stock - Currency: CAD
Taking everything into account, CNQ scores 6 out of 10 in our fundamental rating. CNQ was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. Both the health and profitability get an excellent rating, making CNQ a very profitable company, without any liquidiy or solvency issues. CNQ is valued correctly, but it does not seem to be growing.
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.
CNQ had positive earnings in 4 of the past 5 years.
Each year in the past 5 years CNQ had a positive operating cash flow.
1.2 Ratios
CNQ has a better Return On Assets (10.12%) than 90.55% of its industry peers.
CNQ has a Return On Equity of 19.04%. This is amongst the best in the industry. CNQ outperforms 93.03% of its industry peers.
With an excellent Return On Invested Capital value of 11.94%, CNQ belongs to the best of the industry, outperforming 91.54% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CNQ is significantly above the industry average of 7.73%.
| 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
The Profit Margin of CNQ (21.25%) is better than 77.61% of its industry peers.
In the last couple of years the Profit Margin of CNQ has grown nicely.
CNQ's Operating Margin of 27.86% is fine compared to the rest of the industry. CNQ outperforms 78.11% of its industry peers.
CNQ's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 50.27%, CNQ is in the better half of the industry, outperforming 68.16% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CNQ is creating value.
CNQ has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CNQ has been reduced compared to 5 years ago.
The debt/assets ratio for CNQ has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.03 indicates that CNQ is not in any danger for bankruptcy at the moment.
The Altman-Z score of CNQ (3.03) is better than 80.10% of its industry peers.
The Debt to FCF ratio of CNQ is 1.19, which is an excellent value as it means it would take CNQ, only 1.19 years of fcf income to pay off all of its debts.
CNQ's Debt to FCF ratio of 1.19 is amongst the best of the industry. CNQ outperforms 90.05% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that CNQ is not too dependend on debt financing.
CNQ has a Debt to Equity ratio of 0.24. This is comparable to the rest of the industry: CNQ outperforms 55.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 3.03 |
ROIC/WACC1.63
WACC7.33%
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.
CNQ has a Quick Ratio of 0.84. This is a bad value and indicates that CNQ is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CNQ (0.53) is worse than 72.64% 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 small growth in Earnings Per Share. In the last year, the EPS has grown by 0.41%.
CNQ shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.97% yearly.
CNQ shows a decrease in Revenue. In the last year, the revenue decreased by -1.01%.
The Revenue has been growing by 11.33% on average over the past years. This is quite good.
EPS 1Y (TTM)0.41%
EPS 3YN/A
EPS 5Y23.97%
EPS Q2Q%-25.1%
Revenue 1Y (TTM)-1.01%
Revenue growth 3Y28.65%
Revenue growth 5Y11.33%
Sales Q2Q%-10.13%
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 6.84% on average per year.
The Revenue is expected to decrease by -0.06% on average over the next years.
EPS Next Y-7.55%
EPS Next 2Y-3.22%
EPS Next 3Y1.42%
EPS Next 5Y6.84%
Revenue Next Year-0.98%
Revenue Next 2Y1.96%
Revenue Next 3Y1.97%
Revenue Next 5Y-0.06%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 12.01 indicates a correct valuation of CNQ.
Based on the Price/Earnings ratio, CNQ is valued a bit cheaper than the industry average as 60.70% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.35, CNQ is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.26, CNQ is valued correctly.
CNQ's Price/Forward Earnings ratio is in line with the industry average.
CNQ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 95.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.01 | ||
| Fwd PE | 12.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNQ is valued a bit cheaper than 72.64% of the companies in the same industry.
68.66% 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 | 9.67 | ||
| EV/EBITDA | 6.23 |
4.3 Compensation for Growth
CNQ has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y-3.22%
EPS Next 3Y1.42%
5. Dividend
5.1 Amount
CNQ has a Yearly Dividend Yield of 5.02%, which is a nice return.
Compared to an average industry Dividend Yield of 6.59, CNQ pays a bit more dividend than its industry peers.
CNQ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.02% |
5.2 History
On average, the dividend of CNQ grows each year by 22.66%, which is quite nice.
CNQ has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of CNQ decreased recently.
Dividend Growth(5Y)22.66%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
CNQ pays out 56.60% of its income as dividend. 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 2Y-3.22%
EPS Next 3Y1.42%
CANADIAN NATURAL RESOURCES
TSX:CNQ (2/5/2025, 7:00:00 PM)
44.56
+0.16 (+0.36%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners78.16%
Inst Owner ChangeN/A
Ins Owners4.34%
Ins Owner ChangeN/A
Market Cap93.88B
Analysts73.33
Price Target57.09 (28.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.02% |
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)-0.89%
PT rev (3m)0.71%
EPS NQ rev (1m)3.49%
EPS NQ rev (3m)-17.18%
EPS NY rev (1m)3.77%
EPS NY rev (3m)3.91%
Revenue NQ rev (1m)3.16%
Revenue NQ rev (3m)-5.01%
Revenue NY rev (1m)1.62%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.01 | ||
| Fwd PE | 12.26 | ||
| P/S | 2.63 | ||
| P/FCF | 9.67 | ||
| P/OCF | 6.36 | ||
| P/B | 2.35 | ||
| P/tB | 2.35 | ||
| EV/EBITDA | 6.23 |
EPS(TTM)3.71
EY8.33%
EPS(NY)3.63
Fwd EY8.15%
FCF(TTM)4.61
FCFY10.34%
OCF(TTM)7.01
OCFY15.73%
SpS16.97
BVpS18.94
TBVpS18.94
PEG (NY)N/A
PEG (5Y)0.5
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 | 3.03 |
F-Score8
WACC7.33%
ROIC/WACC1.63
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)0.41%
EPS 3YN/A
EPS 5Y23.97%
EPS Q2Q%-25.1%
EPS Next Y-7.55%
EPS Next 2Y-3.22%
EPS Next 3Y1.42%
EPS Next 5Y6.84%
Revenue 1Y (TTM)-1.01%
Revenue growth 3Y28.65%
Revenue growth 5Y11.33%
Sales Q2Q%-10.13%
Revenue Next Year-0.98%
Revenue Next 2Y1.96%
Revenue Next 3Y1.97%
Revenue Next 5Y-0.06%
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%