CANADIAN NATURAL RESOURCES (CNQ.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CNQ - CA1363851017 - Common Stock
49.43 CAD
-0.04 (-0.08%)
Overall CNQ gets a fundamental rating of 5 out of 10. We evaluated CNQ against 206 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 is not valued too expensively and it also shows a decent growth rate.
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.
- CNQ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CNQ has a better Return On Assets (7.78%) than 91.26% of its industry peers.
- With an excellent Return On Equity value of 16.45%, CNQ belongs to the best of the industry, outperforming 93.69% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 10.43%, CNQ belongs to the best of the industry, outperforming 94.66% of the companies in the same industry.
- CNQ had an Average Return On Invested Capital over the past 3 years of 13.06%. This is significantly above the industry average of 6.62%.
| 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
- Looking at the Profit Margin, with a value of 17.23%, CNQ belongs to the top of the industry, outperforming 80.10% of the companies in the same industry.
- CNQ's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 26.62%, CNQ belongs to the top of the industry, outperforming 81.55% of the companies in the same industry.
- In the last couple of years the Operating Margin of CNQ has grown nicely.
- CNQ has a Gross Margin of 48.85%. This is in the better half of the industry: CNQ outperforms 74.76% of its industry peers.
- 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
- CNQ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- CNQ has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, CNQ has less shares outstanding
- CNQ has a worse debt/assets ratio than last year.
2.2 Solvency
- CNQ has an Altman-Z score of 2.67. 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 2.67. This is in the better half of the industry: CNQ outperforms 75.24% of its industry peers.
- A Debt/Equity ratio of 0.44 indicates that CNQ is not too dependend on debt financing.
- The Debt to Equity ratio of CNQ (0.44) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.67 |
ROIC/WACC1.39
WACC7.5%
2.3 Liquidity
- A Current Ratio of 0.86 indicates that CNQ may have some problems paying its short term obligations.
- CNQ's Current ratio of 0.86 is in line compared to the rest of the industry. CNQ outperforms 58.74% of its industry peers.
- A Quick Ratio of 0.53 indicates that CNQ may have some problems paying its short term obligations.
- CNQ has a Quick ratio of 0.53. This is in the lower half of the industry: CNQ underperforms 63.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
- The earnings per share for CNQ have decreased by -1.21% in the last year.
- 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.
- The Revenue has been growing by 9.29% on average over the past years. This is quite good.
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
- The Earnings Per Share is expected to grow by 0.19% on average over the next years.
- CNQ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.12% yearly.
EPS Next Y-2.36%
EPS Next 2Y-6.65%
EPS Next 3Y2.84%
EPS Next 5Y0.19%
Revenue Next Year6.9%
Revenue Next 2Y1.78%
Revenue Next 3Y1.68%
Revenue Next 5Y1.12%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 13.51, the valuation of CNQ can be described as correct.
- Based on the Price/Earnings ratio, CNQ is valued a bit cheaper than the industry average as 70.39% of the companies are valued more expensively.
- CNQ is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 16.37 indicates a correct valuation of CNQ.
- Based on the Price/Forward Earnings ratio, CNQ is valued a bit cheaper than 63.11% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of CNQ to the average of the S&P500 Index (25.98), we can say CNQ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 16.37 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CNQ is valued cheaply inside the industry as 84.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.39 |
4.3 Compensation for Growth
- The excellent profitability rating of CNQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.8
EPS Next 2Y-6.65%
EPS Next 3Y2.84%
5. Dividend
5.1 Amount
- CNQ has a Yearly Dividend Yield of 4.81%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.29, 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.81% |
5.2 History
- The dividend of CNQ is nicely growing with an annual growth rate of 23.37%!
- CNQ has been paying a dividend for at least 10 years, so it has a reliable track record.
- CNQ has decreased its dividend recently.
Dividend Growth(5Y)23.37%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- CNQ pays out 71.45% of its income as dividend. 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-6.65%
EPS Next 3Y2.84%
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 13.51 and the Price/Book (PB) ratio is 2.55.
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.