CANADIAN NATURAL RESOURCES (CNQ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CNQ - CA1363851017 - Common Stock
32.79 USD
-0.18 (-0.55%)
33.02 USD
+0.23 (+0.7%)
Overall CNQ gets a fundamental rating of 5 out of 10. We evaluated CNQ against 210 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of CNQ while its profitability can be described as average. CNQ is not valued too expensively and it also shows a decent 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.
Of the past 5 years CNQ 4 years were profitable.
Each year in the past 5 years CNQ had a positive operating cash flow.
1.2 Ratios
CNQ has a better Return On Assets (7.78%) than 81.43% of its industry peers.
Looking at the Return On Equity, with a value of 16.45%, CNQ belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.43%, CNQ belongs to the top of the industry, outperforming 85.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CNQ is significantly below the industry average of 21.09%.
| 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 70.48% of the companies in the same industry.
CNQ's Profit Margin has declined in the last couple of years.
CNQ has a Operating Margin of 26.62%. This is in the better half of the industry: CNQ outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of CNQ has grown nicely.
CNQ has a Gross Margin (48.85%) which is in line with its industry peers.
CNQ's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CNQ is creating value.
The number of shares outstanding for CNQ has been reduced compared to 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
CNQ has an Altman-Z score of 2.55. This is not the best score and indicates that CNQ is in the grey zone with still only limited risk for bankruptcy at the moment.
CNQ has a better Altman-Z score (2.55) than 77.14% of its industry peers.
CNQ has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.44, CNQ is in line with its industry, outperforming 53.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.55 |
ROIC/WACC1.45
WACC7.18%
2.3 Liquidity
A Current Ratio of 0.86 indicates that CNQ may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.86, CNQ is doing worse than 62.38% of the companies in the same industry.
CNQ has a Quick Ratio of 0.86. 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 80.00% 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%.
Measured over the past years, CNQ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.79% on average per year.
CNQ shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.06%.
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
Based on estimates for the next years, CNQ will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.35% on average per year.
Based on estimates for the next years, CNQ will show a small growth in Revenue. The Revenue will grow by 1.07% on average per year.
EPS Next Y-0.19%
EPS Next 2Y-3.31%
EPS Next 3Y6.51%
EPS Next 5Y16.35%
Revenue Next Year5.79%
Revenue Next 2Y0.57%
Revenue Next 3Y0.62%
Revenue Next 5Y1.07%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
CNQ is valuated correctly with a Price/Earnings ratio of 12.28.
Based on the Price/Earnings ratio, CNQ is valued a bit cheaper than 65.71% of the companies in the same industry.
CNQ is valuated cheaply when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.85, the valuation of CNQ can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CNQ is on the same level as its industry peers.
CNQ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.28 | ||
| Fwd PE | 13.85 |
4.2 Price Multiples
69.05% 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 | 5.92 |
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)0.73
EPS Next 2Y-3.31%
EPS Next 3Y6.51%
5. Dividend
5.1 Amount
CNQ has a Yearly Dividend Yield of 5.21%, which is a nice return.
CNQ's Dividend Yield is a higher than the industry average which is at 3.96.
CNQ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.21% |
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-3.31%
EPS Next 3Y6.51%
32.79
-0.18 (-0.55%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.42%
Inst Owner Change-4.68%
Ins Owners2.19%
Ins Owner ChangeN/A
Market Cap68.31B
Revenue(TTM)38.62B
Net Income(TTM)6.66B
Analysts73.6
Price Target39.12 (19.3%)
Short Float %3.94%
Short Ratio11.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.21% |
Yearly Dividend1.52
Dividend Growth(5Y)23.37%
DP71.45%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)0.64%
PT rev (3m)0.04%
EPS NQ rev (1m)-1.96%
EPS NQ rev (3m)-5.34%
EPS NY rev (1m)-3.08%
EPS NY rev (3m)-0.88%
Revenue NQ rev (1m)-4.69%
Revenue NQ rev (3m)-5.82%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.28 | ||
| Fwd PE | 13.85 | ||
| P/S | 2.42 | ||
| P/FCF | N/A | ||
| P/OCF | 6.33 | ||
| P/B | 2.31 | ||
| P/tB | 2.31 | ||
| EV/EBITDA | 5.92 |
EPS(TTM)2.67
EY8.14%
EPS(NY)2.37
Fwd EY7.22%
FCF(TTM)-0.36
FCFYN/A
OCF(TTM)5.18
OCFY15.8%
SpS13.55
BVpS14.19
TBVpS14.19
PEG (NY)N/A
PEG (5Y)0.73
Graham Number29.2
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
WACC7.18%
ROIC/WACC1.45
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-0.19%
EPS Next 2Y-3.31%
EPS Next 3Y6.51%
EPS Next 5Y16.35%
Revenue 1Y (TTM)8.06%
Revenue growth 3Y5.86%
Revenue growth 5Y9.29%
Sales Q2Q%7.01%
Revenue Next Year5.79%
Revenue Next 2Y0.57%
Revenue Next 3Y0.62%
Revenue Next 5Y1.07%
EBIT growth 1Y3.24%
EBIT growth 3Y0.75%
EBIT growth 5Y11.71%
EBIT Next Year109.7%
EBIT Next 3Y30.04%
EBIT Next 5Y18.2%
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 5 / 10 to CNQ.
What is the valuation status for CNQ stock?
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.
Can you provide the financial health for CNQ stock?
The financial health rating of CANADIAN NATURAL RESOURCES (CNQ) is 3 / 10.
Can you provide the dividend sustainability for CNQ stock?
The dividend rating of CANADIAN NATURAL RESOURCES (CNQ) is 6 / 10 and the dividend payout ratio is 71.45%.