CANADIAN NATURAL RESOURCES (CNQ)
CA1363851017 - Common Stock
Taking everything into account, CNQ scores 5 out of 10 in our fundamental rating. CNQ was compared to 206 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
With a decent Return On Assets value of 10.12%, CNQ is doing good in the industry, outperforming 73.53% of the companies in the same industry.
CNQ has a better Return On Equity (19.04%) than 69.61% 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 74.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CNQ is significantly below the industry average of 29.25%.
| 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's Profit Margin of 21.25% is fine compared to the rest of the industry. CNQ outperforms 68.14% of its industry peers.
In the last couple of years the Profit Margin of CNQ has grown nicely.
CNQ's Operating Margin of 27.86% is in line compared to the rest of the industry. CNQ outperforms 59.31% of its industry peers.
CNQ's Operating Margin has improved in the last couple of years.
CNQ has a Gross Margin (50.27%) which is in line with 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CNQ is creating 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.
CNQ has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.18 indicates that CNQ is not in any danger for bankruptcy at the moment.
The Altman-Z score of CNQ (3.18) is better than 77.45% of its industry peers.
CNQ has a debt to FCF ratio of 1.19. This is a very positive value and a sign of high solvency as it would only need 1.19 years to pay back of all of its debts.
CNQ has a better Debt to FCF ratio (1.19) than 84.31% 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.
The Debt to Equity ratio of CNQ (0.24) is better than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 3.18 |
ROIC/WACC1.62
WACC7.39%
2.3 Liquidity
A Current Ratio of 0.84 indicates that CNQ may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.84, CNQ is doing worse than 70.10% of the companies in the same industry.
CNQ has a Quick 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.
CNQ's Quick ratio of 0.53 is on the low side compared to the rest of the industry. CNQ is outperformed by 82.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
CNQ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -39.11%.
CNQ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.85% yearly.
The Revenue has decreased by -1.01% in the past year.
Measured over the past years, CNQ shows a quite strong growth in Revenue. The Revenue has been growing by 11.33% on average per year.
EPS 1Y (TTM)-39.11%
EPS 3YN/A
EPS 5Y14.85%
EPS Q2Q%-25.1%
Revenue 1Y (TTM)-1.01%
Revenue growth 3Y28.65%
Revenue growth 5Y11.33%
Sales Q2Q%-10.13%
3.2 Future
CNQ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.40% yearly.
The Revenue is expected to decrease by -1.78% on average over the next years.
EPS Next Y-34.8%
EPS Next 2Y-17.6%
EPS Next 3Y-6.16%
EPS Next 5Y0.4%
Revenue Next Year-2.33%
Revenue Next 2Y1.53%
Revenue Next 3Y0.75%
Revenue Next 5Y-1.78%
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
With a Price/Earnings ratio of 13.15, CNQ is valued correctly.
CNQ's Price/Earnings ratio is in line with the industry average.
CNQ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.29.
CNQ is valuated correctly with a Price/Forward Earnings ratio of 13.55.
The rest of the industry has a similar Price/Forward Earnings ratio as CNQ.
CNQ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 13.55 |
4.2 Price Multiples
CNQ's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CNQ is valued a bit cheaper than 65.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.59 | ||
| EV/EBITDA | 6.76 |
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 decrease with -6.16% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.89
EPS Next 2Y-17.6%
EPS Next 3Y-6.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.35%, CNQ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.59, 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 2.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
5.2 History
The dividend of CNQ is nicely growing with an annual growth rate of 22.66%!
CNQ has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)22.66%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CNQ pays out 56.60% of its income as dividend. 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-17.6%
EPS Next 3Y-6.16%
CANADIAN NATURAL RESOURCES
NYSE:CNQ (11/22/2024, 8:04:00 PM)
After market: 34.8 -0.04 (-0.11%)34.84
+0.29 (+0.84%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap73.51B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 13.55 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.12% | ||
| ROE | 19.04% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.86% | ||
| PM (TTM) | 21.25% | ||
| GM | 50.27% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-39.11%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-34.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.01%
Revenue growth 3Y28.65%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y