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 205 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.
CNQ had a positive operating cash flow in the past year.
CNQ had positive earnings in 4 of the past 5 years.
CNQ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.12%, CNQ is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
CNQ has a better Return On Equity (19.04%) than 70.59% 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 75.98% 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 29.03%.
| 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 better Profit Margin (21.25%) than 68.14% of its industry peers.
CNQ's Profit Margin has improved in the last couple of years.
CNQ's Operating Margin of 27.86% is in line compared to the rest of the industry. CNQ outperforms 58.82% of its industry peers.
In the last couple of years the Operating Margin of CNQ has grown nicely.
Looking at the Gross Margin, with a value of 50.27%, CNQ is in line with its industry, outperforming 54.90% of the companies in the same industry.
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
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
Compared to 5 years ago, CNQ has less shares outstanding
The debt/assets ratio for CNQ has been reduced compared to a year ago.
2.2 Solvency
CNQ has an Altman-Z score of 2.99. This indicates that CNQ is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 2.99, CNQ is doing good in the industry, outperforming 77.45% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 1.19, CNQ belongs to the best of the industry, outperforming 84.31% of the companies in the same industry.
CNQ has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.24, CNQ is in the better half of the industry, outperforming 64.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 2.99 |
ROIC/WACC1.61
WACC7.42%
2.3 Liquidity
A Current Ratio of 0.84 indicates that CNQ may have some problems paying its short term obligations.
CNQ has a Current ratio of 0.84. This is in the lower half of the industry: CNQ underperforms 70.59% of its industry peers.
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 82.35% 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.
Looking at the last year, CNQ shows a decrease in Revenue. The Revenue has decreased by -1.01% in the last 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.
CNQ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.07% yearly.
EPS Next Y-34.71%
EPS Next 2Y-18.21%
EPS Next 3Y-7.52%
EPS Next 5Y0.4%
Revenue Next Year-2.56%
Revenue Next 2Y0.22%
Revenue Next 3Y0.3%
Revenue Next 5Y0.07%
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 11.77, the valuation of CNQ can be described as very reasonable.
CNQ's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.54. CNQ is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 12.31 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 (23.99), we can say CNQ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.77 | ||
| Fwd PE | 12.31 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CNQ.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CNQ indicates a somewhat cheap valuation: CNQ is cheaper than 67.65% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.46 | ||
| EV/EBITDA | 6.11 |
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 -7.52% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.79
EPS Next 2Y-18.21%
EPS Next 3Y-7.52%
5. Dividend
5.1 Amount
CNQ has a Yearly Dividend Yield of 4.94%, which is a nice return.
CNQ's Dividend Yield is a higher than the industry average which is at 7.14.
Compared to an average S&P500 Dividend Yield of 2.36, CNQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.94% |
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
CNQ pays out 56.60% of its income as dividend. 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.
DP56.6%
EPS Next 2Y-18.21%
EPS Next 3Y-7.52%
CANADIAN NATURAL RESOURCES
NYSE:CNQ (12/24/2024, 8:04:21 PM)
Premarket: 30.26 +0.01 (+0.03%)30.25
+0.23 (+0.77%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners78.16%
Inst Owner Change5.96%
Ins Owners4.34%
Ins Owner ChangeN/A
Market Cap63.73B
Analysts73.33
Price Target40.74 (34.68%)
Short Float %1.47%
Short Ratio7.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.94% |
Dividend Growth(5Y)22.66%
DP56.6%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-0.85%
PT rev (3m)-3.13%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)-19.97%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-9.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.92%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-4.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.77 | ||
| Fwd PE | 12.31 | ||
| P/S | 2.57 | ||
| P/FCF | 9.46 | ||
| P/OCF | 6.22 | ||
| P/B | 2.3 | ||
| P/tB | 2.3 | ||
| EV/EBITDA | 6.11 |
EPS(TTM)2.57
EY8.5%
EPS(NY)2.46
Fwd EY8.12%
FCF(TTM)3.2
FCFY10.57%
OCF(TTM)4.86
OCFY16.07%
SpS11.77
BVpS13.13
TBVpS13.13
PEG (NY)N/A
PEG (5Y)0.79
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 | 2.99 |
F-Score8
WACC7.42%
ROIC/WACC1.61
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)-39.11%
EPS 3YN/A
EPS 5Y14.85%
EPS Q2Q%-25.1%
EPS Next Y-34.71%
EPS Next 2Y-18.21%
EPS Next 3Y-7.52%
EPS Next 5Y0.4%
Revenue 1Y (TTM)-1.01%
Revenue growth 3Y28.65%
Revenue growth 5Y11.33%
Sales Q2Q%-10.13%
Revenue Next Year-2.56%
Revenue Next 2Y0.22%
Revenue Next 3Y0.3%
Revenue Next 5Y0.07%
EBIT growth 1Y13.34%
EBIT growth 3YN/A
EBIT growth 5Y16.63%
EBIT Next Year66.74%
EBIT Next 3Y23.85%
EBIT Next 5Y13.12%
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%