We assign a fundamental rating of 4 out of 10 to CNQ. CNQ was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. CNQ has a medium profitability rating, but doesn't score so well on its financial health evaluation. CNQ has a decent growth rate and is not valued too expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year CNQ was profitable.
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

With an excellent Return On Assets value of 7.78%, CNQ belongs to the best of the industry, outperforming 80.19% of the companies in the same industry.
CNQ has a better Return On Equity (16.45%) than 81.16% of its industry peers.
CNQ has a better Return On Invested Capital (10.43%) than 85.51% 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 21.94%.

		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

CNQ has a better Profit Margin (17.23%) than 71.01% of its industry peers.
CNQ's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 26.62%, CNQ is in the better half of the industry, outperforming 67.15% of the companies in the same industry.
CNQ's Operating Margin has improved in the last couple of years.
CNQ has a Gross Margin (48.85%) 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	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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

CNQ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
CNQ has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 2.67 indicates that CNQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
CNQ's Altman-Z score of 2.67 is fine compared to the rest of the industry. CNQ outperforms 76.33% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that CNQ is not too dependend on debt financing.
The Debt to Equity ratio of CNQ (0.44) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.44
Debt/FCF	N/A
Altman-Z	2.67

ROIC/WACC1.4

WACC7.43%

2.3 Liquidity

A Current Ratio of 0.86 indicates that CNQ may have some problems paying its short term obligations.
CNQ has a Current ratio of 0.86. This is in the lower half of the industry: CNQ underperforms 63.77% of its industry peers.
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 80.19% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.86
Quick Ratio	0.53

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for CNQ have decreased by -1.21% in the last year.
The Earnings Per Share has been growing by 16.79% on average over the past years. This is quite good.
CNQ shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.06%.
The Revenue has been growing by 9.29% on average over the past years. This is quite good.

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.
The Revenue is expected to grow by 1.12% on average over the next years.

EPS Next Y-2.36%

EPS Next 2Y-6.65%

EPS Next 3Y2.84%

EPS Next 5Y0.19%

Revenue Next Year6.9%

Revenue Next 2Y1.78%

Revenue Next 3Y1.68%

Revenue Next 5Y1.12%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 13.73, CNQ is valued correctly.
63.28% of the companies in the same industry are more expensive than CNQ, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.25. CNQ is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.65, 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 25.98, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	13.73
Fwd PE	16.65

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNQ indicates a somewhat cheap valuation: CNQ is cheaper than 67.15% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	6.39

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)0.82

EPS Next 2Y-6.65%

EPS Next 3Y2.84%

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5. Dividend

5.1 Amount

CNQ has a Yearly Dividend Yield of 4.81%, which is a nice return.
CNQ's Dividend Yield is a higher than the industry average which is at 3.73.
Compared to an average S&P500 Dividend Yield of 1.82, CNQ pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	4.81%

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

71.45% of the earnings are spent on dividend by CNQ. 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-6.65%

EPS Next 3Y2.84%

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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 13.73 and the Price/Book (PB) ratio is 2.59.

What is the financial health of CANADIAN NATURAL RESOURCES (CNQ) stock?

The financial health rating of CANADIAN NATURAL RESOURCES (CNQ) is 3 / 10.