CANADIAN NATURAL RESOURCES (CNQ.CA)
CA1363851017 - Common Stock
Taking everything into account, CNQ scores 6 out of 10 in our fundamental rating. CNQ was compared to 220 industry peers in the Oil, Gas & Consumable Fuels industry. While CNQ belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CNQ has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
CNQ had positive earnings in the past year.
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 (10.10%) than 92.99% of its industry peers.
Looking at the Return On Equity, with a value of 19.44%, CNQ belongs to the top of the industry, outperforming 95.33% of the companies in the same industry.
CNQ's Return On Invested Capital of 12.69% is amongst the best of the industry. CNQ outperforms 92.99% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CNQ is significantly above the industry average of 7.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.1% | ||
| ROE | 19.44% | ||
| ROIC | 12.69% |
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
With an excellent Profit Margin value of 20.88%, CNQ belongs to the best of the industry, outperforming 82.24% of the companies in the same industry.
In the last couple of years the Profit Margin of CNQ has grown nicely.
With a decent Operating Margin value of 29.00%, CNQ is doing good in the industry, outperforming 77.57% of the companies in the same industry.
In the last couple of years the Operating Margin of CNQ has grown nicely.
With a Gross Margin value of 51.51%, CNQ perfoms like the industry average, outperforming 58.88% 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 | 29% | ||
| PM (TTM) | 20.88% | ||
| GM | 51.51% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CNQ is creating value.
CNQ has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CNQ has more shares outstanding
Compared to 1 year ago, CNQ has an improved debt to assets ratio.
2.2 Solvency
CNQ has an Altman-Z score of 2.97. 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 2.97. This is in the better half of the industry: CNQ outperforms 78.97% of its industry peers.
The Debt to FCF ratio of CNQ is 1.12, which is an excellent value as it means it would take CNQ, only 1.12 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.12, CNQ belongs to the top of the industry, outperforming 90.65% of the companies in the same industry.
CNQ has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
CNQ's Debt to Equity ratio of 0.27 is in line compared to the rest of the industry. CNQ outperforms 52.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.12 | ||
| Altman-Z | 2.97 |
ROIC/WACC1.69
WACC7.52%
2.3 Liquidity
A Current Ratio of 0.88 indicates that CNQ may have some problems paying its short term obligations.
CNQ has a Current ratio of 0.88. This is comparable to the rest of the industry: CNQ outperforms 53.27% of its industry peers.
A Quick Ratio of 0.59 indicates that CNQ may have some problems paying its short term obligations.
CNQ's Quick ratio of 0.59 is on the low side compared to the rest of the industry. CNQ is outperformed by 70.09% of its industry peers.
CNQ does not score too well on the current and quick ratio evaluation. However, as it has 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 | 0.88 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
CNQ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.86%.
The Earnings Per Share has been growing by 14.85% on average over the past years. This is quite good.
The Revenue has been growing slightly by 0.21% in the past year.
The Revenue has been growing by 11.33% on average over the past years. This is quite good.
EPS 1Y (TTM)-48.86%
EPS 3YN/A
EPS 5Y14.85%
EPS Q2Q%-22.81%
Revenue 1Y (TTM)0.21%
Revenue growth 3Y28.65%
Revenue growth 5Y11.33%
Sales Q2Q%14.71%
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 0.40% on average per year.
CNQ is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.78% yearly.
EPS Next Y-27.94%
EPS Next 2Y-6.25%
EPS Next 3Y-3.47%
EPS Next 5Y0.4%
Revenue Next Year1.52%
Revenue Next 2Y3.15%
Revenue Next 3Y1.62%
Revenue Next 5Y-1.78%
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.
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 10.77, the valuation of CNQ can be described as reasonable.
Based on the Price/Earnings ratio, CNQ is valued a bit cheaper than the industry average as 63.08% of the companies are valued more expensively.
CNQ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.52.
With a Price/Forward Earnings ratio of 9.33, 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 rather cheap valuation when compared to the S&P500 average which is at 21.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 9.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNQ indicates a somewhat cheap valuation: CNQ is cheaper than 71.50% of the companies listed in the same industry.
71.50% 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 | 8.82 | ||
| EV/EBITDA | 5.9 |
4.3 Compensation for Growth
The excellent profitability rating of CNQ may justify a higher PE ratio.
A cheap valuation may be justified as CNQ's earnings are expected to decrease with -3.47% in the coming years.
PEG (NY)N/A
PEG (5Y)0.73
EPS Next 2Y-6.25%
EPS Next 3Y-3.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.74%, CNQ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.47, 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 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
5.2 History
On average, the dividend of CNQ grows each year by 6.79%, which is quite nice.
CNQ has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.79%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CNQ pays out 54.28% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of CNQ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP54.28%
EPS Next 2Y-6.25%
EPS Next 3Y-3.47%
CANADIAN NATURAL RESOURCES
TSX:CNQ (9/13/2024, 7:00:00 PM)
43.4
-0.9 (-2.03%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap92.12B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 9.33 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.1% | ||
| ROE | 19.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29% | ||
| PM (TTM) | 20.88% | ||
| GM | 51.51% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-48.86%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-27.94%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.21%
Revenue growth 3Y28.65%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y