CANADIAN NATURAL RESOURCES (CNQ.CA) Stock Fundamental Analysis
TSX:CNQ - Toronto Stock Exchange - CA1363851017 - Common Stock - Currency: CAD
Taking everything into account, CNQ scores 5 out of 10 in our fundamental rating. CNQ was compared to 210 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
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's Return On Assets of 8.93% is amongst the best of the industry. CNQ outperforms 89.52% of its industry peers.
CNQ's Return On Equity of 18.73% is amongst the best of the industry. CNQ outperforms 92.38% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.59%, CNQ belongs to the top of the industry, outperforming 92.86% 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 7.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.93% | ||
| ROE | 18.73% | ||
| ROIC | 11.59% |
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
CNQ's Profit Margin of 19.76% is fine compared to the rest of the industry. CNQ outperforms 78.10% of its industry peers.
CNQ's Profit Margin has declined in the last couple of years.
CNQ's Operating Margin of 29.37% is fine compared to the rest of the industry. CNQ outperforms 80.00% of its industry peers.
CNQ's Operating Margin has improved in the last couple of years.
CNQ has a better Gross Margin (50.07%) than 71.43% of its industry peers.
CNQ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.37% | ||
| PM (TTM) | 19.76% | ||
| GM | 50.07% |
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
The number of shares outstanding for CNQ has been reduced compared to 5 years ago.
Compared to 1 year ago, CNQ has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.59 indicates that CNQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.59, CNQ is doing good in the industry, outperforming 75.24% of the companies in the same industry.
The Debt to FCF ratio of CNQ is 285.36, which is on the high side as it means it would take CNQ, 285.36 years of fcf income to pay off all of its debts.
CNQ has a Debt to FCF ratio of 285.36. This is comparable to the rest of the industry: CNQ outperforms 49.52% of its industry peers.
CNQ has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
CNQ's Debt to Equity ratio of 0.42 is in line compared to the rest of the industry. CNQ outperforms 50.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 285.36 | ||
| Altman-Z | 2.59 |
ROIC/WACC1.48
WACC7.85%
2.3 Liquidity
A Current Ratio of 0.84 indicates that CNQ may have some problems paying its short term obligations.
With a Current ratio value of 0.84, CNQ perfoms like the industry average, outperforming 56.67% of the companies in the same 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.
CNQ has a Quick ratio of 0.53. This is in the lower half of the industry: CNQ underperforms 68.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.91% over the past year.
The Earnings Per Share has been growing by 16.79% on average over the past years. This is quite good.
The Revenue has been growing slightly by 7.78% in the past year.
The Revenue has been growing by 9.29% on average over the past years. This is quite good.
EPS 1Y (TTM)5.91%
EPS 3Y4.92%
EPS 5Y16.79%
EPS Q2Q%69.34%
Revenue 1Y (TTM)7.78%
Revenue growth 3Y5.86%
Revenue growth 5Y9.29%
Sales Q2Q%32.69%
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 17.16% yearly.
The Revenue is expected to grow by 0.18% on average over the next years.
EPS Next Y0.06%
EPS Next 2Y0.74%
EPS Next 3Y13.1%
EPS Next 5Y17.16%
Revenue Next Year17.47%
Revenue Next 2Y6.25%
Revenue Next 3Y4.24%
Revenue Next 5Y0.18%
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
With a Price/Earnings ratio of 11.11, the valuation of CNQ can be described as very reasonable.
Based on the Price/Earnings ratio, CNQ is valued a bit cheaper than 67.14% of the companies in the same industry.
When comparing the Price/Earnings ratio of CNQ to the average of the S&P500 Index (27.45), we can say CNQ is valued rather cheaply.
CNQ is valuated correctly with a Price/Forward Earnings ratio of 12.45.
CNQ's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of CNQ to the average of the S&P500 Index (21.90), we can say CNQ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.11 | ||
| Fwd PE | 12.45 |
4.2 Price Multiples
CNQ's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CNQ is cheaper than 77.14% of the companies in the same industry.
CNQ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1389.16 | ||
| EV/EBITDA | 6.04 |
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.
CNQ has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CNQ's earnings are expected to grow with 13.10% in the coming years.
PEG (NY)189.9
PEG (5Y)0.66
EPS Next 2Y0.74%
EPS Next 3Y13.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.37%, CNQ is a good candidate for dividend investing.
CNQ's Dividend Yield is a higher than the industry average which is at 6.26.
Compared to an average S&P500 Dividend Yield of 2.38, CNQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.37% |
5.2 History
On average, the dividend of CNQ grows each year by 23.37%, which is quite nice.
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 59.88% 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.
DP59.88%
EPS Next 2Y0.74%
EPS Next 3Y13.1%
TSX:CNQ (7/4/2025, 7:00:00 PM)
43.77
-0.02 (-0.05%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners77.66%
Inst Owner ChangeN/A
Ins Owners2.18%
Ins Owner ChangeN/A
Market Cap91.68B
Analysts75.2
Price Target52.42 (19.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.37% |
Yearly Dividend2.09
Dividend Growth(5Y)23.37%
DP59.88%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.24%
Min EPS beat(2)-0.9%
Max EPS beat(2)9.38%
EPS beat(4)3
Avg EPS beat(4)5.72%
Min EPS beat(4)-0.9%
Max EPS beat(4)9.38%
EPS beat(8)6
Avg EPS beat(8)4.92%
EPS beat(12)8
Avg EPS beat(12)3.4%
EPS beat(16)12
Avg EPS beat(16)4.38%
Revenue beat(2)2
Avg Revenue beat(2)3.27%
Min Revenue beat(2)2.38%
Max Revenue beat(2)4.16%
Revenue beat(4)3
Avg Revenue beat(4)1.9%
Min Revenue beat(4)-4.04%
Max Revenue beat(4)5.1%
Revenue beat(8)6
Avg Revenue beat(8)1.31%
Revenue beat(12)10
Avg Revenue beat(12)3.57%
Revenue beat(16)14
Avg Revenue beat(16)5.9%
PT rev (1m)1.43%
PT rev (3m)-6.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)10.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.11 | ||
| Fwd PE | 12.45 | ||
| P/S | 2.39 | ||
| P/FCF | 1389.16 | ||
| P/OCF | 6.19 | ||
| P/B | 2.27 | ||
| P/tB | 2.27 | ||
| EV/EBITDA | 6.04 |
EPS(TTM)3.94
EY9%
EPS(NY)3.52
Fwd EY8.03%
FCF(TTM)0.03
FCFY0.07%
OCF(TTM)7.07
OCFY16.14%
SpS18.31
BVpS19.31
TBVpS19.31
PEG (NY)189.9
PEG (5Y)0.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.93% | ||
| ROE | 18.73% | ||
| ROCE | 14.79% | ||
| ROIC | 11.59% | ||
| ROICexc | 11.6% | ||
| ROICexgc | 11.6% | ||
| OM | 29.37% | ||
| PM (TTM) | 19.76% | ||
| GM | 50.07% | ||
| FCFM | 0.17% |
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
ROICexcg growth 3Y-2.66%
ROICexcg 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-Score4
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 285.36 | ||
| Debt/EBITDA | 0.94 | ||
| Cap/Depr | 209.97% | ||
| Cap/Sales | 38.42% | ||
| Interest Coverage | 17.01 | ||
| Cash Conversion | 80.97% | ||
| Profit Quality | 0.87% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 2.59 |
F-Score4
WACC7.85%
ROIC/WACC1.48
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)5.91%
EPS 3Y4.92%
EPS 5Y16.79%
EPS Q2Q%69.34%
EPS Next Y0.06%
EPS Next 2Y0.74%
EPS Next 3Y13.1%
EPS Next 5Y17.16%
Revenue 1Y (TTM)7.78%
Revenue growth 3Y5.86%
Revenue growth 5Y9.29%
Sales Q2Q%32.69%
Revenue Next Year17.47%
Revenue Next 2Y6.25%
Revenue Next 3Y4.24%
Revenue Next 5Y0.18%
EBIT growth 1Y15.31%
EBIT growth 3Y0.75%
EBIT growth 5Y11.71%
EBIT Next Year115.1%
EBIT Next 3Y25.61%
EBIT Next 5Y16.75%
FCF growth 1Y-99.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-17%
OCF growth 3Y-2.58%
OCF growth 5Y8.68%