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 211 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
CNQ had positive earnings in the past year.
CNQ had a positive operating cash flow in the past year.
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
CNQ's Return On Assets of 8.93% is amongst the best of the industry. CNQ outperforms 80.57% of its industry peers.
CNQ's Return On Equity of 18.73% is amongst the best of the industry. CNQ outperforms 80.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.59%, CNQ belongs to the top of the industry, outperforming 83.41% 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 23.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.93% | ||
| ROE | 18.73% | ||
| ROIC | 11.59% |
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 (19.76%) than 70.62% of its industry peers.
CNQ's Profit Margin has declined in the last couple of years.
CNQ has a better Operating Margin (29.37%) than 69.19% of its industry peers.
In the last couple of years the Operating Margin of CNQ has grown nicely.
CNQ has a Gross Margin (50.07%) 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 | 29.37% | ||
| PM (TTM) | 19.76% | ||
| GM | 50.07% |
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.
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.
Compared to 1 year ago, CNQ has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.59 indicates that CNQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.59, CNQ is doing good in the industry, outperforming 76.30% of the companies in the same industry.
The Debt to FCF ratio of CNQ is 285.36, which is on the high side as it means it would take CNQ, 285.36 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CNQ (285.36) is worse than 60.66% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that CNQ is not too dependend on debt financing.
CNQ has a Debt to Equity ratio (0.42) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 285.36 | ||
| Altman-Z | 2.59 |
ROIC/WACC1.6
WACC7.25%
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: 67.77% of the companies in the same industry are doing better.
A Quick Ratio of 0.53 indicates that CNQ may have some problems paying its short term obligations.
The Quick ratio of CNQ (0.53) is worse than 79.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
CNQ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.91%.
CNQ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.79% yearly.
Looking at the last year, CNQ shows a small growth in Revenue. The Revenue has grown by 7.78% in the last year.
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)5.91%
EPS 3Y4.92%
EPS 5Y16.79%
EPS Q2Q%69.34%
Revenue 1Y (TTM)7.78%
Revenue growth 3Y5.86%
Revenue growth 5Y9.29%
Sales Q2Q%32.69%
3.2 Future
CNQ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.16% yearly.
CNQ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.18% yearly.
EPS Next Y0.06%
EPS Next 2Y0.74%
EPS Next 3Y13.1%
EPS Next 5Y17.16%
Revenue Next Year17.47%
Revenue Next 2Y6.25%
Revenue Next 3Y4.24%
Revenue Next 5Y0.18%
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 stable.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.11, which indicates a very decent valuation of CNQ.
Based on the Price/Earnings ratio, CNQ is valued a bit cheaper than 68.25% of the companies in the same industry.
CNQ is valuated cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.45, CNQ is valued correctly.
CNQ's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, CNQ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.11 | ||
| Fwd PE | 12.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNQ is valued a bit cheaper than the industry average as 65.88% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CNQ is valued a bit more expensive than 60.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1389.55 | ||
| EV/EBITDA | 6.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CNQ has a very decent profitability rating, which may justify a higher PE ratio.
CNQ's earnings are expected to grow with 13.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)189.92
PEG (5Y)0.66
EPS Next 2Y0.74%
EPS Next 3Y13.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.39%, CNQ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.66, 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 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
5.2 History
The dividend of CNQ is nicely growing with an annual growth rate of 23.37%!
CNQ has been paying a dividend for at least 10 years, so it has 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
59.88% of the earnings are spent on dividend by CNQ. 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.
DP59.88%
EPS Next 2Y0.74%
EPS Next 3Y13.1%
32.22
-0.19 (-0.59%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners77.66%
Inst Owner Change6.1%
Ins Owners2.18%
Ins Owner ChangeN/A
Market Cap67.49B
Analysts75.2
Price Target38.29 (18.84%)
Short Float %9.74%
Short Ratio31.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
Yearly Dividend1.53
Dividend Growth(5Y)23.37%
DP59.88%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.24%
Min EPS beat(2)-0.9%
Max EPS beat(2)9.38%
EPS beat(4)3
Avg EPS beat(4)5.72%
Min EPS beat(4)-0.9%
Max EPS beat(4)9.38%
EPS beat(8)6
Avg EPS beat(8)4.92%
EPS beat(12)8
Avg EPS beat(12)3.4%
EPS beat(16)12
Avg EPS beat(16)4.38%
Revenue beat(2)2
Avg Revenue beat(2)3.27%
Min Revenue beat(2)2.38%
Max Revenue beat(2)4.16%
Revenue beat(4)3
Avg Revenue beat(4)1.9%
Min Revenue beat(4)-4.04%
Max Revenue beat(4)5.1%
Revenue beat(8)6
Avg Revenue beat(8)1.31%
Revenue beat(12)10
Avg Revenue beat(12)3.57%
Revenue beat(16)14
Avg Revenue beat(16)5.9%
PT rev (1m)2.28%
PT rev (3m)-2.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)10.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.11 | ||
| Fwd PE | 12.45 | ||
| P/S | 2.39 | ||
| P/FCF | 1389.55 | ||
| P/OCF | 6.2 | ||
| P/B | 2.27 | ||
| P/tB | 2.27 | ||
| EV/EBITDA | 6.04 |
EPS(TTM)2.9
EY9%
EPS(NY)2.59
Fwd EY8.03%
FCF(TTM)0.02
FCFY0.07%
OCF(TTM)5.2
OCFY16.14%
SpS13.47
BVpS14.21
TBVpS14.21
PEG (NY)189.92
PEG (5Y)0.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.93% | ||
| ROE | 18.73% | ||
| ROCE | 14.79% | ||
| ROIC | 11.59% | ||
| ROICexc | 11.6% | ||
| ROICexgc | 11.6% | ||
| OM | 29.37% | ||
| PM (TTM) | 19.76% | ||
| GM | 50.07% | ||
| FCFM | 0.17% |
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
ROICexcg growth 3Y-2.66%
ROICexcg 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-Score4
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 285.36 | ||
| Debt/EBITDA | 0.94 | ||
| Cap/Depr | 209.97% | ||
| Cap/Sales | 38.42% | ||
| Interest Coverage | 17.01 | ||
| Cash Conversion | 80.97% | ||
| Profit Quality | 0.87% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 2.59 |
F-Score4
WACC7.25%
ROIC/WACC1.6
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)5.91%
EPS 3Y4.92%
EPS 5Y16.79%
EPS Q2Q%69.34%
EPS Next Y0.06%
EPS Next 2Y0.74%
EPS Next 3Y13.1%
EPS Next 5Y17.16%
Revenue 1Y (TTM)7.78%
Revenue growth 3Y5.86%
Revenue growth 5Y9.29%
Sales Q2Q%32.69%
Revenue Next Year17.47%
Revenue Next 2Y6.25%
Revenue Next 3Y4.24%
Revenue Next 5Y0.18%
EBIT growth 1Y15.31%
EBIT growth 3Y0.75%
EBIT growth 5Y11.71%
EBIT Next Year115.1%
EBIT Next 3Y25.61%
EBIT Next 5Y16.75%
FCF growth 1Y-99.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-17%
OCF growth 3Y-2.58%
OCF growth 5Y8.68%