CANADIAN NATURAL RESOURCES (CNQ) Stock Fundamental Analysis
NYSE:CNQ - New York Stock Exchange, Inc. - CA1363851017 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CNQ. CNQ was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of CNQ get a neutral evaluation. Nothing too spectacular is happening here. CNQ has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year CNQ was profitable.
CNQ had a positive operating cash flow in the past year.
In multiple years CNQ reported negative net income over the last 5 years.
CNQ had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CNQ has a Return On Assets of 10.12%. This is in the better half of the industry: CNQ outperforms 79.05% of its industry peers.
CNQ's Return On Equity of 19.04% is fine compared to the rest of the industry. CNQ outperforms 72.86% of its industry peers.
The Return On Invested Capital of CNQ (11.94%) is better than 76.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CNQ is significantly below the industry average of 27.47%.
| 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 Profit Margin of 21.25%. This is in the better half of the industry: CNQ outperforms 71.43% of its industry peers.
In the last couple of years the Profit Margin of CNQ has grown nicely.
Looking at the Operating Margin, with a value of 27.86%, CNQ is in the better half of the industry, outperforming 61.90% 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 50.27% is in line compared to the rest of the industry. CNQ outperforms 55.71% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CNQ is creating value.
CNQ has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.88 indicates that CNQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CNQ (2.88) is better than 78.57% of its industry peers.
The Debt to FCF ratio of CNQ is 1.19, which is an excellent value as it means it would take CNQ, only 1.19 years of fcf income to pay off all of its debts.
CNQ has a better Debt to FCF ratio (1.19) than 86.19% 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.
CNQ has a Debt to Equity ratio of 0.24. This is in the better half of the industry: CNQ outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 2.88 |
ROIC/WACC1.61
WACC7.4%
2.3 Liquidity
CNQ has a Current 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.
With a Current ratio value of 0.84, CNQ is not doing good in the industry: 69.05% of the companies in the same industry are doing better.
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 81.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The earnings per share for CNQ have decreased strongly by -10.24% in the last year.
The Earnings Per Share has been growing by 16.90% on average over the past years. This is quite good.
EPS 1Y (TTM)-10.24%
EPS 3Y5.1%
EPS 5Y16.9%
EPS Q2Q%-19.02%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.7%
3.2 Future
The Earnings Per Share is expected to grow by 11.59% on average over the next years. This is quite good.
Based on estimates for the next years, CNQ will show a small growth in Revenue. The Revenue will grow by 0.17% on average per year.
EPS Next Y4.62%
EPS Next 2Y8.16%
EPS Next 3Y22.77%
EPS Next 5Y11.59%
Revenue Next Year5.84%
Revenue Next 2Y3.25%
Revenue Next 3Y-0.12%
Revenue Next 5Y0.17%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
CNQ is valuated reasonably with a Price/Earnings ratio of 11.67.
The rest of the industry has a similar Price/Earnings ratio as CNQ.
When comparing the Price/Earnings ratio of CNQ to the average of the S&P500 Index (29.35), we can say CNQ is valued rather cheaply.
CNQ is valuated reasonably with a Price/Forward Earnings ratio of 11.16.
CNQ's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CNQ is cheaper than 60.48% of the companies in the same industry.
CNQ is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNQ is valued a bit cheaper than 63.81% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CNQ is valued a bit cheaper than the industry average as 74.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.8 | ||
| EV/EBITDA | 5.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CNQ does not grow enough to justify the current Price/Earnings ratio.
CNQ has a very decent profitability rating, which may justify a higher PE ratio.
CNQ's earnings are expected to grow with 22.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.53
PEG (5Y)0.69
EPS Next 2Y8.16%
EPS Next 3Y22.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.88%, CNQ is a good candidate for dividend investing.
CNQ's Dividend Yield is a higher than the industry average which is at 7.06.
Compared to an average S&P500 Dividend Yield of 2.33, CNQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
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.
CNQ has decreased its dividend 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 2Y8.16%
EPS Next 3Y22.77%
28.37
+0.41 (+1.47%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners74.44%
Inst Owner Change-2.79%
Ins Owners4.4%
Ins Owner ChangeN/A
Market Cap59.59B
Analysts71.2
Price Target39.04 (37.61%)
Short Float %0.46%
Short Ratio1.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
Yearly Dividend1.25
Dividend Growth(5Y)22.66%
DP56.6%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)-1.68%
PT rev (3m)-4.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.1%
EPS NY rev (1m)-2.61%
EPS NY rev (3m)1.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.16%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 11.16 | ||
| P/S | 2.39 | ||
| P/FCF | 8.8 | ||
| P/OCF | 5.78 | ||
| P/B | 2.14 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 5.73 |
EPS(TTM)2.43
EY8.57%
EPS(NY)2.54
Fwd EY8.96%
FCF(TTM)3.22
FCFY11.37%
OCF(TTM)4.9
OCFY17.29%
SpS11.87
BVpS13.25
TBVpS13.25
PEG (NY)2.53
PEG (5Y)0.69
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 | 2.88 |
F-Score8
WACC7.4%
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)-10.24%
EPS 3Y5.1%
EPS 5Y16.9%
EPS Q2Q%-19.02%
EPS Next Y4.62%
EPS Next 2Y8.16%
EPS Next 3Y22.77%
EPS Next 5Y11.59%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.7%
Revenue Next Year5.84%
Revenue Next 2Y3.25%
Revenue Next 3Y-0.12%
Revenue Next 5Y0.17%
EBIT growth 1Y13.34%
EBIT growth 3YN/A
EBIT growth 5Y16.63%
EBIT Next Year66.74%
EBIT Next 3Y23.85%
EBIT Next 5Y13.03%
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%