CANADIAN NATURAL RESOURCES (CNQ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CNQ - CA1363851017 - Common Stock
33.43 USD
-0.54 (-1.59%)
33.5 USD
+0.07 (+0.21%)
We assign a fundamental rating of 5 out of 10 to CNQ. CNQ was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of CNQ while its profitability can be described as average. CNQ has a decent growth rate and is not valued too expensively.
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.
Of the past 5 years CNQ 4 years were profitable.
CNQ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CNQ (7.78%) is better than 78.57% of its industry peers.
Looking at the Return On Equity, with a value of 16.45%, CNQ is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
CNQ's Return On Invested Capital of 10.43% is amongst the best of the industry. CNQ outperforms 83.81% of its industry peers.
CNQ had an Average Return On Invested Capital over the past 3 years of 13.06%. This is significantly below the industry average of 21.66%.
| 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 69.52% of its industry peers.
In the last couple of years the Profit Margin of CNQ has declined.
CNQ has a better Operating Margin (26.62%) than 65.71% of its industry peers.
CNQ's Operating Margin has improved in the last couple of years.
CNQ's Gross Margin of 48.85% is in line compared to the rest of the industry. CNQ outperforms 58.57% of its industry peers.
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
CNQ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CNQ has been reduced compared to 1 year ago.
The number of shares outstanding for CNQ has been reduced compared to 5 years ago.
CNQ has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.61 indicates that CNQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
CNQ has a better Altman-Z score (2.61) than 76.67% of its industry peers.
CNQ has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
CNQ has a Debt to Equity ratio (0.44) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.61 |
ROIC/WACC1.43
WACC7.3%
2.3 Liquidity
CNQ has a Current 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.
CNQ's Current ratio of 0.86 is on the low side compared to the rest of the industry. CNQ is outperformed by 61.43% of its industry peers.
A Quick Ratio of 0.53 indicates that CNQ may have some problems paying its short term obligations.
The Quick ratio of CNQ (0.53) is worse than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
CNQ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.21%.
The Earnings Per Share has been growing by 16.79% on average over the past years. This is quite good.
The Revenue has grown by 8.06% in the past year. This is quite good.
The Revenue has been growing by 9.29% on average over the past years. This is quite good.
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.
CNQ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.31% yearly.
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 12.86.
CNQ's Price/Earnings ratio is a bit cheaper when compared to the industry. CNQ is cheaper than 61.90% of the companies in the same industry.
CNQ is valuated rather cheaply when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
CNQ is valuated correctly with a Price/Forward Earnings ratio of 14.77.
CNQ's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.46. CNQ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 14.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNQ is valued a bit cheaper than 67.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.14 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of CNQ may justify a higher PE ratio.
PEG (NY)4.31
PEG (5Y)0.77
EPS Next 2Y-4.08%
EPS Next 3Y8.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.91%, CNQ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.91, CNQ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, CNQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.91% |
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 71.45% of its income as dividend. 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%
33.43
-0.54 (-1.59%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.7%
Inst Owner Change-4.53%
Ins Owners2.18%
Ins Owner ChangeN/A
Market Cap69.77B
Revenue(TTM)38.62B
Net Income(TTM)6.66B
Analysts75.2
Price Target38.73 (15.85%)
Short Float %0.8%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.91% |
Yearly Dividend1.48
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)0.7%
PT rev (3m)0.03%
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 | 12.86 | ||
| Fwd PE | 14.77 | ||
| P/S | 2.54 | ||
| P/FCF | N/A | ||
| P/OCF | 6.65 | ||
| P/B | 2.43 | ||
| P/tB | 2.43 | ||
| EV/EBITDA | 6.14 |
EPS(TTM)2.6
EY7.78%
EPS(NY)2.26
Fwd EY6.77%
FCF(TTM)-0.35
FCFYN/A
OCF(TTM)5.02
OCFY15.03%
SpS13.14
BVpS13.76
TBVpS13.76
PEG (NY)4.31
PEG (5Y)0.77
Graham Number28.38
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 | 2.61 |
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 FAQ
Can you provide the ChartMill fundamental rating for CANADIAN NATURAL RESOURCES?
ChartMill assigns a fundamental rating of 5 / 10 to CNQ.
What is the valuation status for CNQ stock?
ChartMill assigns a valuation rating of 4 / 10 to CANADIAN NATURAL RESOURCES (CNQ). This can be considered as Fairly Valued.
What is the profitability of CNQ stock?
CANADIAN NATURAL RESOURCES (CNQ) has a profitability rating of 6 / 10.
Can you provide the financial health for CNQ stock?
The financial health rating of CANADIAN NATURAL RESOURCES (CNQ) is 3 / 10.
Can you provide the dividend sustainability for CNQ stock?
The dividend rating of CANADIAN NATURAL RESOURCES (CNQ) is 6 / 10 and the dividend payout ratio is 71.45%.