CANADIAN NATURAL RESOURCES (CNQ.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CNQ - CA1363851017 - Common Stock
47.29 CAD
+0.56 (+1.2%)
CNQ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 215 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.
Each year in the past 5 years CNQ had a positive operating cash flow.
1.2 Ratios
CNQ's Return On Assets of 7.78% is amongst the best of the industry. CNQ outperforms 90.70% of its industry peers.
CNQ has a better Return On Equity (16.45%) than 92.09% of its industry peers.
CNQ has a Return On Invested Capital of 10.43%. This is amongst the best in the industry. CNQ outperforms 93.95% 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 6.62%.
| 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
The Profit Margin of CNQ (17.23%) is better than 78.60% of its industry peers.
CNQ's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 26.62%, CNQ is in the better half of the industry, outperforming 79.53% of the companies in the same industry.
CNQ's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 48.85%, CNQ is in the better half of the industry, outperforming 73.49% 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CNQ is creating some value.
Compared to 1 year ago, CNQ has less shares outstanding
CNQ has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CNQ has a worse debt to assets ratio.
2.2 Solvency
CNQ has an Altman-Z score of 2.60. 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 better Altman-Z score (2.60) than 76.28% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that CNQ is not too dependend on debt financing.
CNQ's Debt to Equity ratio of 0.44 is in line compared to the rest of the industry. CNQ outperforms 51.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.6 |
ROIC/WACC1.43
WACC7.3%
2.3 Liquidity
A Current Ratio of 0.86 indicates that CNQ may have some problems paying its short term obligations.
CNQ has a Current ratio (0.86) which is in line with its industry peers.
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.
The Quick ratio of CNQ (0.53) is worse than 66.05% 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.
Measured over the past years, CNQ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.79% on average per year.
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 quite strong growth in Earnings Per Share. The EPS will grow by 17.58% on average per year.
The Revenue is expected to grow by 1.31% on average over the next years.
EPS Next Y2.99%
EPS Next 2Y-4.08%
EPS Next 3Y8.68%
EPS Next 5Y17.58%
Revenue Next Year5.99%
Revenue Next 2Y1.01%
Revenue Next 3Y2.64%
Revenue Next 5Y1.31%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
CNQ is valuated correctly with a Price/Earnings ratio of 12.92.
69.77% of the companies in the same industry are more expensive than CNQ, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CNQ to the average of the S&P500 Index (26.31), we can say CNQ is valued rather cheaply.
The Price/Forward Earnings ratio is 14.83, which indicates a correct valuation of CNQ.
Based on the Price/Forward Earnings ratio, CNQ is valued a bit cheaper than the industry average as 62.33% of the companies are valued more expensively.
CNQ is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.92 | ||
| Fwd PE | 14.83 |
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 82.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CNQ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.33
PEG (5Y)0.77
EPS Next 2Y-4.08%
EPS Next 3Y8.68%
5. Dividend
5.1 Amount
CNQ has a Yearly Dividend Yield of 5.03%, which is a nice return.
CNQ's Dividend Yield is a higher than the industry average which is at 5.81.
CNQ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
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-4.08%
EPS Next 3Y8.68%
TSX:CNQ (11/28/2025, 7:00:00 PM)
47.29
+0.56 (+1.2%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.7%
Inst Owner ChangeN/A
Ins Owners2.18%
Ins Owner ChangeN/A
Market Cap98.52B
Revenue(TTM)38.62B
Net Income(TTM)6.66B
Analysts75.2
Price Target54.29 (14.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
Yearly Dividend2.09
Dividend Growth(5Y)23.37%
DP71.45%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.33%
Min EPS beat(2)-0.27%
Max EPS beat(2)12.93%
EPS beat(4)2
Avg EPS beat(4)5.29%
Min EPS beat(4)-0.9%
Max EPS beat(4)12.93%
EPS beat(8)5
Avg EPS beat(8)4.49%
EPS beat(12)7
Avg EPS beat(12)3.16%
EPS beat(16)11
Avg EPS beat(16)4.12%
Revenue beat(2)0
Avg Revenue beat(2)-2.62%
Min Revenue beat(2)-2.64%
Max Revenue beat(2)-2.6%
Revenue beat(4)2
Avg Revenue beat(4)0.33%
Min Revenue beat(4)-2.64%
Max Revenue beat(4)4.16%
Revenue beat(8)4
Avg Revenue beat(8)0.16%
Revenue beat(12)8
Avg Revenue beat(12)1.3%
Revenue beat(16)12
Avg Revenue beat(16)5.3%
PT rev (1m)1.26%
PT rev (3m)1.09%
EPS NQ rev (1m)-9.77%
EPS NQ rev (3m)-21.4%
EPS NY rev (1m)3.49%
EPS NY rev (3m)2.27%
Revenue NQ rev (1m)2.17%
Revenue NQ rev (3m)-1.18%
Revenue NY rev (1m)-1.09%
Revenue NY rev (3m)-1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.92 | ||
| Fwd PE | 14.83 | ||
| P/S | 2.56 | ||
| P/FCF | N/A | ||
| P/OCF | 6.68 | ||
| P/B | 2.44 | ||
| P/tB | 2.44 | ||
| EV/EBITDA | 6.1 |
EPS(TTM)3.66
EY7.74%
EPS(NY)3.19
Fwd EY6.74%
FCF(TTM)-0.5
FCFYN/A
OCF(TTM)7.08
OCFY14.97%
SpS18.51
BVpS19.39
TBVpS19.39
PEG (NY)4.33
PEG (5Y)0.77
Graham Number39.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.78% | ||
| ROE | 16.45% | ||
| ROCE | 13.3% | ||
| ROIC | 10.43% | ||
| ROICexc | 10.44% | ||
| ROICexgc | 10.44% | ||
| OM | 26.62% | ||
| PM (TTM) | 17.23% | ||
| GM | 48.85% | ||
| FCFM | N/A |
ROA(3y)10.79%
ROA(5y)8.36%
ROE(3y)21.6%
ROE(5y)16.84%
ROIC(3y)13.06%
ROIC(5y)N/A
ROICexc(3y)13.27%
ROICexc(5y)N/A
ROICexgc(3y)13.27%
ROICexgc(5y)N/A
ROCE(3y)16.66%
ROCE(5y)N/A
ROICexgc growth 3Y-2.66%
ROICexgc growth 5Y10.27%
ROICexc growth 3Y-2.66%
ROICexc growth 5Y10.27%
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%
F-Score5
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.93 | ||
| Cap/Depr | 180.69% | ||
| Cap/Sales | 40.92% | ||
| Interest Coverage | 12.17 | ||
| Cash Conversion | 77.63% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 2.6 |
F-Score5
WACC7.3%
ROIC/WACC1.43
Cap/Depr(3y)121.37%
Cap/Depr(5y)96.99%
Cap/Sales(3y)22.2%
Cap/Sales(5y)19.34%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1.21%
EPS 3Y4.92%
EPS 5Y16.79%
EPS Q2Q%-11.34%
EPS Next Y2.99%
EPS Next 2Y-4.08%
EPS Next 3Y8.68%
EPS Next 5Y17.58%
Revenue 1Y (TTM)8.06%
Revenue growth 3Y5.86%
Revenue growth 5Y9.29%
Sales Q2Q%7.01%
Revenue Next Year5.99%
Revenue Next 2Y1.01%
Revenue Next 3Y2.64%
Revenue Next 5Y1.31%
EBIT growth 1Y3.24%
EBIT growth 3Y0.75%
EBIT growth 5Y11.71%
EBIT Next Year114.69%
EBIT Next 3Y28.54%
EBIT Next 5Y18.38%
FCF growth 1Y-114.97%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y22.25%
OCF growth 3Y-2.58%
OCF growth 5Y8.68%
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.
What is the valuation status for CNQ stock?
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 7 / 10.
Can you provide the financial health for CNQ stock?
The financial health rating of CANADIAN NATURAL RESOURCES (CNQ.CA) is 3 / 10.
Can you provide the dividend sustainability for CNQ stock?
The dividend rating of CANADIAN NATURAL RESOURCES (CNQ.CA) is 6 / 10 and the dividend payout ratio is 71.45%.