CANADIAN NATURAL RESOURCES (CNQ) Stock Fundamental Analysis
USA - NYSE:CNQ - CA1363851017 - Common Stock
30.13 USD
-0.08 (-0.26%)
30.16 USD
+0.03 (+0.1%)
Overall CNQ gets a fundamental rating of 4 out of 10. We evaluated CNQ against 211 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.
CNQ had a positive operating cash flow in the past year.
Of the past 5 years CNQ 4 years were profitable.
In the past 5 years CNQ always reported a positive cash flow from operatings.
1.2 Ratios
CNQ has a Return On Assets of 9.76%. This is amongst the best in the industry. CNQ outperforms 87.20% of its industry peers.
With an excellent Return On Equity value of 20.15%, CNQ belongs to the best of the industry, outperforming 87.20% of the companies in the same industry.
CNQ has a better Return On Invested Capital (10.99%) than 84.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CNQ is significantly below the industry average of 21.53%.
| 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 in the better half of the industry: CNQ outperforms 76.78% of its industry peers.
In the last couple of years the Profit Margin of CNQ has declined.
Looking at the Operating Margin, with a value of 28.32%, CNQ is in the better half of the industry, outperforming 70.14% 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 comparable to the rest of the industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CNQ is creating some value.
CNQ has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CNQ has been reduced compared to 5 years ago.
The debt/assets ratio for CNQ is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.54 indicates that CNQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CNQ (2.54) is better than 76.30% 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 54.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.54 |
ROIC/WACC1.48
WACC7.43%
2.3 Liquidity
A Current Ratio of 0.85 indicates that CNQ may have some problems paying its short term obligations.
CNQ has a worse Current ratio (0.85) than 63.51% of its industry peers.
A Quick Ratio of 0.54 indicates that CNQ may have some problems paying its short term obligations.
With a Quick ratio value of 0.54, CNQ is not doing good in the industry: 81.04% of the companies in the same industry are doing better.
| 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%.
CNQ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.79% yearly.
Looking at the last year, CNQ shows a small growth in Revenue. The Revenue has grown by 3.42% in the last year.
Measured over the past years, CNQ shows a quite strong growth in Revenue. The Revenue has been growing by 9.29% on average per year.
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 1.17% on average per year.
EPS Next Y-0.49%
EPS Next 2Y-5.37%
EPS Next 3Y15.52%
EPS Next 5Y17.58%
Revenue Next Year7.16%
Revenue Next 2Y0.74%
Revenue Next 3Y3%
Revenue Next 5Y1.17%
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 11.20, 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 68.25% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.40. CNQ is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 13.63, which indicates a correct valuation of CNQ.
The rest of the industry has a similar Price/Forward Earnings ratio as CNQ.
CNQ is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.2 | ||
| Fwd PE | 13.63 |
4.2 Price Multiples
66.82% of the companies in the same industry are more expensive than CNQ, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.96 |
4.3 Compensation for Growth
CNQ has a very decent 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)N/A
PEG (5Y)0.67
EPS Next 2Y-5.37%
EPS Next 3Y15.52%
5. Dividend
5.1 Amount
CNQ has a Yearly Dividend Yield of 5.53%, which is a nice return.
Compared to an average industry Dividend Yield of 6.28, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.53% |
5.2 History
On average, the dividend of CNQ grows each year by 23.37%, which is quite nice.
CNQ has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of CNQ decreased recently.
Dividend Growth(5Y)23.37%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
55.82% of the earnings are spent on dividend by CNQ. 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-5.37%
EPS Next 3Y15.52%
30.13
-0.08 (-0.26%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.7%
Inst Owner Change-0.05%
Ins Owners2.18%
Ins Owner ChangeN/A
Market Cap62.88B
Analysts75.83
Price Target38.46 (27.65%)
Short Float %8.93%
Short Ratio28.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.53% |
Yearly Dividend1.49
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)-0.78%
PT rev (3m)1.52%
EPS NQ rev (1m)-1.4%
EPS NQ rev (3m)-0.38%
EPS NY rev (1m)-1.18%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)-3.81%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-8.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.2 | ||
| Fwd PE | 13.63 | ||
| P/S | 2.32 | ||
| P/FCF | N/A | ||
| P/OCF | 6.38 | ||
| P/B | 2.14 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 5.96 |
EPS(TTM)2.69
EY8.93%
EPS(NY)2.21
Fwd EY7.34%
FCF(TTM)-0.41
FCFYN/A
OCF(TTM)4.72
OCFY15.67%
SpS12.97
BVpS14.1
TBVpS14.1
PEG (NY)N/A
PEG (5Y)0.67
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 | 2.54 |
F-Score4
WACC7.43%
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)-6.45%
EPS 3Y4.92%
EPS 5Y16.79%
EPS Q2Q%-19.32%
EPS Next Y-0.49%
EPS Next 2Y-5.37%
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 Year7.16%
Revenue Next 2Y0.74%
Revenue Next 3Y3%
Revenue Next 5Y1.17%
EBIT growth 1Y1%
EBIT growth 3Y0.75%
EBIT growth 5Y11.71%
EBIT Next Year114.69%
EBIT Next 3Y28.54%
EBIT Next 5Y18.21%
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%