CANADIAN NATURAL RESOURCES (CNQ) Stock Fundamental Analysis
NYSE:CNQ - New York Stock Exchange, Inc. - CA1363851017 - Common Stock - Currency: USD
CNQ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 212 industry peers in the Oil, Gas & Consumable Fuels industry. CNQ has an average financial health and profitability rating. CNQ is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CNQ was profitable.
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
CNQ has a Return On Assets of 10.12%. This is in the better half of the industry: CNQ outperforms 75.24% of its industry peers.
CNQ has a better Return On Equity (19.04%) than 71.36% of its industry peers.
CNQ has a Return On Invested Capital of 11.94%. This is in the better half of the industry: CNQ outperforms 75.24% 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 28.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.12% | ||
| ROE | 19.04% | ||
| ROIC | 11.94% |
ROA(3y)11.73%
ROA(5y)8.31%
ROE(3y)23.35%
ROE(5y)16.84%
ROIC(3y)13.64%
ROIC(5y)N/A
1.3 Margins
CNQ has a Profit Margin of 21.25%. This is in the better half of the industry: CNQ outperforms 68.93% of its industry peers.
CNQ's Profit Margin has improved in the last couple of years.
CNQ has a Operating Margin (27.86%) which is in line with its industry peers.
CNQ's Operating Margin has improved in the last couple of years.
CNQ has a Gross Margin of 50.27%. This is comparable to the rest of the industry: CNQ outperforms 54.85% of its industry peers.
CNQ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.86% | ||
| PM (TTM) | 21.25% | ||
| GM | 50.27% |
OM growth 3YN/A
OM growth 5Y4.76%
PM growth 3YN/A
PM growth 5Y13.19%
GM growth 3Y11.78%
GM growth 5Y0.49%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CNQ is creating value.
Compared to 1 year ago, CNQ has less shares outstanding
Compared to 5 years ago, CNQ has less shares outstanding
Compared to 1 year ago, CNQ has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.03 indicates that CNQ is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.03, CNQ is doing good in the industry, outperforming 76.70% of the companies in the same industry.
The Debt to FCF ratio of CNQ is 1.19, which is an excellent value as it means it would take CNQ, only 1.19 years of fcf income to pay off all of its debts.
CNQ has a Debt to FCF ratio of 1.19. This is amongst the best in the industry. CNQ outperforms 84.47% of its industry peers.
CNQ has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
CNQ's Debt to Equity ratio of 0.24 is fine compared to the rest of the industry. CNQ outperforms 64.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 3.03 |
ROIC/WACC1.63
WACC7.33%
2.3 Liquidity
CNQ has a Current 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.
Looking at the Current ratio, with a value of 0.84, CNQ is doing worse than 71.84% of the companies in the same industry.
A Quick Ratio of 0.53 indicates that CNQ may have some problems paying its short term obligations.
CNQ's Quick ratio of 0.53 is on the low side compared to the rest of the industry. CNQ is outperformed by 83.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
CNQ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.41%.
Measured over the past years, CNQ shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.97% on average per year.
Looking at the last year, CNQ shows a decrease in Revenue. The Revenue has decreased by -1.01% in the last year.
CNQ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.33% yearly.
EPS 1Y (TTM)0.41%
EPS 3YN/A
EPS 5Y23.97%
EPS Q2Q%-25.1%
Revenue 1Y (TTM)-1.01%
Revenue growth 3Y28.65%
Revenue growth 5Y11.33%
Sales Q2Q%-10.13%
3.2 Future
The Earnings Per Share is expected to grow by 6.84% on average over the next years.
Based on estimates for the next years, CNQ will show a decrease in Revenue. The Revenue will decrease by -0.06% on average per year.
EPS Next Y-7.55%
EPS Next 2Y-3.22%
EPS Next 3Y1.42%
EPS Next 5Y6.84%
Revenue Next Year-0.98%
Revenue Next 2Y1.96%
Revenue Next 3Y1.97%
Revenue Next 5Y-0.06%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 12.06, the valuation of CNQ can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as CNQ.
The average S&P500 Price/Earnings ratio is at 28.47. CNQ is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 12.29 indicates a correct valuation of CNQ.
CNQ's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of CNQ to the average of the S&P500 Index (92.74), we can say CNQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 12.29 |
4.2 Price Multiples
60.19% of the companies in the same industry are more expensive than CNQ, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CNQ is valued a bit cheaper than 70.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.69 | ||
| EV/EBITDA | 6.24 |
4.3 Compensation for Growth
The decent profitability rating of CNQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y-3.22%
EPS Next 3Y1.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.02%, CNQ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.57, 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 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.02% |
5.2 History
On average, the dividend of CNQ grows each year by 22.66%, 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)22.66%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
56.60% of the earnings are spent on dividend by CNQ. This is a bit on the high side, but may be sustainable.
The dividend of CNQ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP56.6%
EPS Next 2Y-3.22%
EPS Next 3Y1.42%
CANADIAN NATURAL RESOURCES
NYSE:CNQ (2/4/2025, 8:04:00 PM)
After market: 30.8 -0.19 (-0.61%)30.99
+0.97 (+3.23%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners78.16%
Inst Owner Change0%
Ins Owners4.34%
Ins Owner ChangeN/A
Market Cap65.29B
Analysts73.33
Price Target39.71 (28.14%)
Short Float %0.68%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.02% |
Yearly Dividend1.79
Dividend Growth(5Y)22.66%
DP56.6%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.21%
Min EPS beat(2)6.58%
Max EPS beat(2)7.83%
EPS beat(4)3
Avg EPS beat(4)3.69%
Min EPS beat(4)-7.49%
Max EPS beat(4)7.83%
EPS beat(8)5
Avg EPS beat(8)2.1%
EPS beat(12)9
Avg EPS beat(12)3.73%
EPS beat(16)13
Avg EPS beat(16)6.35%
Revenue beat(2)1
Avg Revenue beat(2)0.53%
Min Revenue beat(2)-4.04%
Max Revenue beat(2)5.1%
Revenue beat(4)2
Avg Revenue beat(4)0%
Min Revenue beat(4)-4.04%
Max Revenue beat(4)5.1%
Revenue beat(8)6
Avg Revenue beat(8)1.79%
Revenue beat(12)10
Avg Revenue beat(12)6.96%
Revenue beat(16)14
Avg Revenue beat(16)6.47%
PT rev (1m)-0.96%
PT rev (3m)-3.37%
EPS NQ rev (1m)3.49%
EPS NQ rev (3m)-17.18%
EPS NY rev (1m)3.77%
EPS NY rev (3m)3.91%
Revenue NQ rev (1m)3.16%
Revenue NQ rev (3m)-5.01%
Revenue NY rev (1m)1.62%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 12.29 | ||
| P/S | 2.63 | ||
| P/FCF | 9.69 | ||
| P/OCF | 6.37 | ||
| P/B | 2.36 | ||
| P/tB | 2.36 | ||
| EV/EBITDA | 6.24 |
EPS(TTM)2.57
EY8.29%
EPS(NY)2.52
Fwd EY8.14%
FCF(TTM)3.2
FCFY10.32%
OCF(TTM)4.86
OCFY15.7%
SpS11.77
BVpS13.14
TBVpS13.14
PEG (NY)N/A
PEG (5Y)0.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.12% | ||
| ROE | 19.04% | ||
| ROCE | 14.85% | ||
| ROIC | 11.94% | ||
| ROICexc | 12.07% | ||
| ROICexgc | 12.07% | ||
| OM | 27.86% | ||
| PM (TTM) | 21.25% | ||
| GM | 50.27% | ||
| FCFM | 27.17% |
ROA(3y)11.73%
ROA(5y)8.31%
ROE(3y)23.35%
ROE(5y)16.84%
ROIC(3y)13.64%
ROIC(5y)N/A
ROICexc(3y)13.9%
ROICexc(5y)N/A
ROICexgc(3y)13.9%
ROICexgc(5y)N/A
ROCE(3y)16.96%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y16.3%
ROICexc growth 3YN/A
ROICexc growth 5Y16.3%
OM growth 3YN/A
OM growth 5Y4.76%
PM growth 3YN/A
PM growth 5Y13.19%
GM growth 3Y11.78%
GM growth 5Y0.49%
F-Score8
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.19 | ||
| Debt/EBITDA | 0.57 | ||
| Cap/Depr | 73.94% | ||
| Cap/Sales | 14.15% | ||
| Interest Coverage | 16.79 | ||
| Cash Conversion | 87.92% | ||
| Profit Quality | 127.86% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 3.03 |
F-Score8
WACC7.33%
ROIC/WACC1.63
Cap/Depr(3y)74.96%
Cap/Depr(5y)66.46%
Cap/Sales(3y)13.58%
Cap/Sales(5y)14.33%
Profit Quality(3y)117.01%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.41%
EPS 3YN/A
EPS 5Y23.97%
EPS Q2Q%-25.1%
EPS Next Y-7.55%
EPS Next 2Y-3.22%
EPS Next 3Y1.42%
EPS Next 5Y6.84%
Revenue 1Y (TTM)-1.01%
Revenue growth 3Y28.65%
Revenue growth 5Y11.33%
Sales Q2Q%-10.13%
Revenue Next Year-0.98%
Revenue Next 2Y1.96%
Revenue Next 3Y1.97%
Revenue Next 5Y-0.06%
EBIT growth 1Y13.34%
EBIT growth 3YN/A
EBIT growth 5Y16.63%
EBIT Next Year66.74%
EBIT Next 3Y23.85%
EBIT Next 5Y13.03%
FCF growth 1Y-31.14%
FCF growth 3Y51.19%
FCF growth 5Y5.56%
OCF growth 1Y-24.49%
OCF growth 3Y37.87%
OCF growth 5Y4.07%