CANADIAN NATURAL RESOURCES (CNQ.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CNQ - CA1363851017 - Common Stock
49.81 CAD
+0.38 (+0.77%)
We assign a fundamental rating of 5 out of 10 to CNQ. CNQ was compared to 206 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 has a correct valuation and a medium 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.
- In the past 5 years CNQ always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 7.78%, CNQ belongs to the top of the industry, outperforming 91.26% of the companies in the same industry.
- 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.
- CNQ has a better Return On Invested Capital (10.43%) than 94.66% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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
- CNQ's Profit Margin of 17.23% is amongst the best of the industry. CNQ outperforms 80.10% of its industry peers.
- In the last couple of years the Profit Margin of CNQ has declined.
- CNQ has a Operating Margin of 26.62%. This is amongst the best in the industry. CNQ outperforms 81.55% of its industry peers.
- 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 74.76% 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 | 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
- 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 2.67 indicates that CNQ is not a great score, but indicates 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.
- CNQ has a Debt to Equity ratio of 0.44. This is comparable to the rest of the industry: CNQ outperforms 51.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.67 |
ROIC/WACC1.39
WACC7.49%
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 comparable to the rest of the industry.
- A Quick Ratio of 0.53 indicates that CNQ may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.53, CNQ is doing worse than 63.11% of the companies in the same industry.
| 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.
- CNQ shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.06%.
- CNQ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.29% yearly.
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
- CNQ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.19% yearly.
- 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
- 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
- The Price/Earnings ratio is 13.61, which indicates a correct valuation of CNQ.
- Compared to the rest of the industry, the Price/Earnings ratio of CNQ indicates a somewhat cheap valuation: CNQ is cheaper than 70.39% of the companies listed in the same industry.
- CNQ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.87.
- Based on the Price/Forward Earnings ratio of 16.50, the valuation of CNQ can be described as correct.
- Based on the Price/Forward Earnings ratio, CNQ is valued a bit cheaper than 63.11% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, CNQ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.61 | ||
| Fwd PE | 16.5 |
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 84.47% of the companies listed in the same industry.
| 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)0.81
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.
- CNQ's Dividend Yield is a higher than the industry average which is at 3.29.
- Compared to an average S&P500 Dividend Yield of 1.82, CNQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.81% |
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
- 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-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 13.61 and the Price/Book (PB) ratio is 2.56.
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.