CANADIAN NATURAL RESOURCES (CNQ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CNQ - CA1363851017 - Common Stock
33.15 USD
+0.85 (+2.63%)
33.2499 USD
+0.1 (+0.3%)
Overall CNQ gets a fundamental rating of 4 out of 10. We evaluated CNQ against 208 industry peers in the Oil, Gas & Consumable Fuels industry. While CNQ is still in line with the averages on profitability rating, there are concerns on its financial health. CNQ has a correct valuation and a medium growth rate.
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.
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
CNQ has a better Return On Assets (7.78%) than 80.29% of its industry peers.
CNQ has a better Return On Equity (16.45%) than 81.25% of its industry peers.
CNQ's Return On Invested Capital of 10.43% is amongst the best of the industry. CNQ outperforms 85.58% 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 21.83%.
| 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
With a decent Profit Margin value of 17.23%, CNQ is doing good in the industry, outperforming 70.67% of the companies in the same industry.
CNQ's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 26.62%, CNQ is doing good in the industry, outperforming 66.83% of the companies in the same industry.
In the last couple of years the Operating Margin of CNQ has grown nicely.
CNQ's Gross Margin of 48.85% is in line compared to the rest of the industry. CNQ outperforms 58.65% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CNQ is creating 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.
Compared to 1 year ago, CNQ has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.55 indicates that CNQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
CNQ's Altman-Z score of 2.55 is fine compared to the rest of the industry. CNQ outperforms 76.44% 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 (0.44) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.55 |
ROIC/WACC1.5
WACC6.94%
2.3 Liquidity
A Current Ratio of 0.86 indicates that CNQ may have some problems paying its short term obligations.
The Current ratio of CNQ (0.86) is worse than 62.98% of its industry peers.
A Quick Ratio of 0.53 indicates that CNQ may have some problems paying its short term obligations.
CNQ has a Quick ratio of 0.53. This is in the lower half of the industry: CNQ underperforms 79.81% 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.
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)-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-1.65%
EPS Next 2Y-4.46%
EPS Next 3Y4.48%
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
With a Price/Earnings ratio of 12.56, CNQ is valued correctly.
CNQ's Price/Earnings ratio is a bit cheaper when compared to the industry. CNQ is cheaper than 67.31% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. CNQ is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 14.54 indicates a correct valuation of CNQ.
The rest of the industry has a similar Price/Forward Earnings ratio as CNQ.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, CNQ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.56 | ||
| Fwd PE | 14.54 |
4.2 Price Multiples
69.23% 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 | 5.88 |
4.3 Compensation for Growth
CNQ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.75
EPS Next 2Y-4.46%
EPS Next 3Y4.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.38%, CNQ is a good candidate for dividend investing.
CNQ's Dividend Yield is a higher than the industry average which is at 3.91.
CNQ's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
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.
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.
The dividend of CNQ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP71.45%
EPS Next 2Y-4.46%
EPS Next 3Y4.48%
33.15
+0.85 (+2.63%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.5%
Inst Owner Change0%
Ins Owners2.22%
Ins Owner ChangeN/A
Market Cap69.06B
Revenue(TTM)38.62B
Net Income(TTM)6.66B
Analysts73.6
Price Target39.12 (18.01%)
Short Float %8.79%
Short Ratio26.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
Yearly Dividend1.5
Dividend Growth(5Y)23.37%
DP71.45%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)0.9%
PT rev (3m)1.73%
EPS NQ rev (1m)-6.06%
EPS NQ rev (3m)-9.3%
EPS NY rev (1m)-1.47%
EPS NY rev (3m)-1.17%
Revenue NQ rev (1m)-4.69%
Revenue NQ rev (3m)-5.82%
Revenue NY rev (1m)1.05%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.56 | ||
| Fwd PE | 14.54 | ||
| P/S | 2.48 | ||
| P/FCF | N/A | ||
| P/OCF | 6.49 | ||
| P/B | 2.37 | ||
| P/tB | 2.37 | ||
| EV/EBITDA | 5.88 |
EPS(TTM)2.64
EY7.96%
EPS(NY)2.28
Fwd EY6.88%
FCF(TTM)-0.36
FCFYN/A
OCF(TTM)5.11
OCFY15.42%
SpS13.36
BVpS14
TBVpS14
PEG (NY)N/A
PEG (5Y)0.75
Graham Number28.84
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 | 2.55 |
F-Score5
WACC6.94%
ROIC/WACC1.5
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 Y-1.65%
EPS Next 2Y-4.46%
EPS Next 3Y4.48%
EPS Next 5Y0.19%
Revenue 1Y (TTM)8.06%
Revenue growth 3Y5.86%
Revenue growth 5Y9.29%
Sales Q2Q%7.01%
Revenue Next Year6.9%
Revenue Next 2Y1.78%
Revenue Next 3Y1.68%
Revenue Next 5Y1.12%
EBIT growth 1Y3.24%
EBIT growth 3Y0.75%
EBIT growth 5Y11.71%
EBIT Next Year109.23%
EBIT Next 3Y29.54%
EBIT Next 5Y16.5%
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 4 / 10 to CNQ.
Can you provide the valuation status for CANADIAN NATURAL RESOURCES?
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.
What are the PE and PB ratios of CANADIAN NATURAL RESOURCES (CNQ) stock?
The Price/Earnings (PE) ratio for CANADIAN NATURAL RESOURCES (CNQ) is 12.56 and the Price/Book (PB) ratio is 2.37.
What is the financial health of CANADIAN NATURAL RESOURCES (CNQ) stock?
The financial health rating of CANADIAN NATURAL RESOURCES (CNQ) is 3 / 10.