CANADIAN NATURAL RESOURCES (CNQ.CA) Stock Fundamental Analysis
Canada - TSX:CNQ - CA1363851017 - Common Stock
43.21 CAD
+0.03 (+0.07%)
CNQ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 218 industry peers in the Oil, Gas & Consumable Fuels industry. While CNQ has a great profitability rating, there are quite some 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.
CNQ had a positive operating cash flow in the past year.
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
The Return On Assets of CNQ (9.76%) is better than 91.74% of its industry peers.
Looking at the Return On Equity, with a value of 20.15%, CNQ belongs to the top of the industry, outperforming 94.04% of the companies in the same industry.
CNQ has a Return On Invested Capital of 10.99%. This is amongst the best in the industry. CNQ outperforms 94.04% 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 6.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.76% | ||
| ROE | 20.15% | ||
| ROIC | 10.99% |
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 has a Profit Margin of 21.90%. This is amongst the best in the industry. CNQ outperforms 84.86% of its industry peers.
CNQ's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 28.32%, CNQ is doing good in the industry, outperforming 79.82% of the companies in the same industry.
In the last couple of years the Operating Margin of CNQ has grown nicely.
The Gross Margin of CNQ (49.63%) is better than 72.94% of its industry peers.
CNQ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.32% | ||
| PM (TTM) | 21.9% | ||
| GM | 49.63% |
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.
CNQ has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CNQ is higher compared to a year ago.
2.2 Solvency
CNQ has an Altman-Z score of 2.56. 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.
The Altman-Z score of CNQ (2.56) is better than 76.15% of its industry peers.
CNQ has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.41, CNQ perfoms like the industry average, outperforming 53.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.56 |
ROIC/WACC1.4
WACC7.85%
2.3 Liquidity
CNQ has a Current Ratio of 0.85. This is a bad value and indicates that CNQ is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.85, CNQ is in line with its industry, outperforming 56.88% of the companies in the same industry.
A Quick Ratio of 0.54 indicates that CNQ may have some problems paying its short term obligations.
CNQ's Quick ratio of 0.54 is on the low side compared to the rest of the industry. CNQ is outperformed by 72.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
CNQ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.45%.
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.
The Revenue has been growing slightly by 3.42% 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)-6.45%
EPS 3Y4.92%
EPS 5Y16.79%
EPS Q2Q%-19.32%
Revenue 1Y (TTM)3.42%
Revenue growth 3Y5.86%
Revenue growth 5Y9.29%
Sales Q2Q%-3.9%
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.
Based on estimates for the next years, CNQ will show a small growth in Revenue. The Revenue will grow by 0.85% on average per year.
EPS Next Y0.7%
EPS Next 2Y-3.67%
EPS Next 3Y15.52%
EPS Next 5Y17.58%
Revenue Next Year7.41%
Revenue Next 2Y0.65%
Revenue Next 3Y2.52%
Revenue Next 5Y0.85%
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.
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
The Price/Earnings ratio is 11.46, which indicates a very decent valuation of CNQ.
Based on the Price/Earnings ratio, CNQ is valued a bit cheaper than the industry average as 68.35% of the companies are valued more expensively.
CNQ is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
CNQ is valuated correctly with a Price/Forward Earnings ratio of 13.44.
Based on the Price/Forward Earnings ratio, CNQ is valued a bit cheaper than the industry average as 62.39% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CNQ to the average of the S&P500 Index (22.73), we can say CNQ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.46 | ||
| Fwd PE | 13.44 |
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 80.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.07 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
CNQ's earnings are expected to grow with 15.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)16.4
PEG (5Y)0.68
EPS Next 2Y-3.67%
EPS Next 3Y15.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.44%, CNQ is a good candidate for dividend investing.
CNQ's Dividend Yield is a higher than the industry average which is at 6.49.
CNQ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.44% |
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 55.82% 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.
DP55.82%
EPS Next 2Y-3.67%
EPS Next 3Y15.52%
TSX:CNQ (9/12/2025, 7:00:00 PM)
43.21
+0.03 (+0.07%)
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 Cap90.18B
Analysts75.83
Price Target53.61 (24.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.44% |
Yearly Dividend2.09
Dividend Growth(5Y)23.37%
DP55.82%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.15%
Min EPS beat(2)9.38%
Max EPS beat(2)12.93%
EPS beat(4)3
Avg EPS beat(4)7%
Min EPS beat(4)-0.9%
Max EPS beat(4)12.93%
EPS beat(8)6
Avg EPS beat(8)5.45%
EPS beat(12)8
Avg EPS beat(12)3.79%
EPS beat(16)12
Avg EPS beat(16)4.8%
Revenue beat(2)1
Avg Revenue beat(2)0.78%
Min Revenue beat(2)-2.6%
Max Revenue beat(2)4.16%
Revenue beat(4)2
Avg Revenue beat(4)-0.02%
Min Revenue beat(4)-4.04%
Max Revenue beat(4)4.16%
Revenue beat(8)5
Avg Revenue beat(8)0.82%
Revenue beat(12)9
Avg Revenue beat(12)2.08%
Revenue beat(16)13
Avg Revenue beat(16)5.56%
PT rev (1m)1.77%
PT rev (3m)2.17%
EPS NQ rev (1m)-4.03%
EPS NQ rev (3m)-12.35%
EPS NY rev (1m)0.64%
EPS NY rev (3m)0.64%
Revenue NQ rev (1m)3.03%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-8.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.46 | ||
| Fwd PE | 13.44 | ||
| P/S | 2.37 | ||
| P/FCF | N/A | ||
| P/OCF | 6.52 | ||
| P/B | 2.18 | ||
| P/tB | 2.18 | ||
| EV/EBITDA | 6.07 |
EPS(TTM)3.77
EY8.72%
EPS(NY)3.22
Fwd EY7.44%
FCF(TTM)-0.57
FCFYN/A
OCF(TTM)6.63
OCFY15.34%
SpS18.21
BVpS19.79
TBVpS19.79
PEG (NY)16.4
PEG (5Y)0.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.76% | ||
| ROE | 20.15% | ||
| ROCE | 14.02% | ||
| ROIC | 10.99% | ||
| ROICexc | 11% | ||
| ROICexgc | 11% | ||
| OM | 28.32% | ||
| PM (TTM) | 21.9% | ||
| GM | 49.63% | ||
| 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
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 | 0.41 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.94 | ||
| Cap/Depr | 210.68% | ||
| Cap/Sales | 39.55% | ||
| Interest Coverage | 13.92 | ||
| Cash Conversion | 77.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 2.56 |
F-Score4
WACC7.85%
ROIC/WACC1.4
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)-6.45%
EPS 3Y4.92%
EPS 5Y16.79%
EPS Q2Q%-19.32%
EPS Next Y0.7%
EPS Next 2Y-3.67%
EPS Next 3Y15.52%
EPS Next 5Y17.58%
Revenue 1Y (TTM)3.42%
Revenue growth 3Y5.86%
Revenue growth 5Y9.29%
Sales Q2Q%-3.9%
Revenue Next Year7.41%
Revenue Next 2Y0.65%
Revenue Next 3Y2.52%
Revenue Next 5Y0.85%
EBIT growth 1Y1%
EBIT growth 3Y0.75%
EBIT growth 5Y11.71%
EBIT Next Year115.1%
EBIT Next 3Y25.61%
EBIT Next 5Y17.84%
FCF growth 1Y-112.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.79%
OCF growth 3Y-2.58%
OCF growth 5Y8.68%