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. There are concerns on the financial health of CNQ while its profitability can be described as average. CNQ has a correct valuation and a medium growth rate.

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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.
In the past year CNQ had a positive cash flow from operations.
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's Return On Invested Capital of 10.43% is amongst the best of the industry. CNQ outperforms 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

The Profit Margin of CNQ (17.23%) is better than 71.01% of its industry peers.
CNQ's Profit Margin has declined in the last couple of years.
CNQ has a better Operating Margin (26.62%) than 67.15% of its industry peers.
CNQ's Operating Margin has improved in the last couple of years.
The Gross Margin of CNQ (48.85%) is comparable to the rest of the industry.
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.
The number of shares outstanding for CNQ has been reduced compared to 1 year ago.
Compared to 5 years ago, CNQ has less shares outstanding
CNQ has a worse debt/assets ratio than last year.

2.2 Solvency

CNQ has an Altman-Z score of 2.72. 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 Altman-Z score of 2.72. This is in the better half of the industry: CNQ outperforms 75.85% 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	2.72

ROIC/WACC1.4

WACC7.45%

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 63.77% of the companies in the same industry.
A Quick Ratio of 0.53 indicates that CNQ may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.53, CNQ is doing worse than 80.19% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.86
Quick Ratio	0.53

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WACC

Debt/Equity

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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%.
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 small growth in Earnings Per Share. The EPS will grow by 0.19% on average per year.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

CNQ is valuated correctly with a Price/Earnings ratio of 13.73.
Compared to the rest of the industry, the Price/Earnings ratio of CNQ indicates a somewhat cheap valuation: CNQ is cheaper than 63.77% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.30, CNQ is valued rather cheaply.
A Price/Forward Earnings ratio of 16.67 indicates a correct valuation of CNQ.
CNQ's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 25.57. CNQ is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	13.73
Fwd PE	16.67

4.2 Price Multiples

67.15% 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	6.59

4.3 Compensation for Growth

The decent profitability rating of CNQ 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

With a Yearly Dividend Yield of 4.81%, CNQ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.73, 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 1.82.

		Industry Rank	Sector Rank
Dividend Yield	4.81%

5.2 History

The dividend of CNQ is nicely growing with an annual growth rate of 23.37%!
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.
CNQ's earnings are growing slower than its dividend. 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.