CANADIAN NATURAL RESOURCES (CNQ)
CA1363851017 - Common Stock
Overall CNQ gets a fundamental rating of 5 out of 10. We evaluated CNQ against 206 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 is valued correctly, but it does not seem to be growing.
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.
In the past 5 years CNQ always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 10.10%, CNQ is doing good in the industry, outperforming 72.82% of the companies in the same industry.
CNQ has a Return On Equity of 19.44%. This is in the better half of the industry: CNQ outperforms 67.48% of its industry peers.
CNQ has a Return On Invested Capital of 12.69%. This is in the better half of the industry: CNQ outperforms 73.30% of its industry peers.
CNQ had an Average Return On Invested Capital over the past 3 years of 13.64%. This is significantly below the industry average of 22.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.1% | ||
| ROE | 19.44% | ||
| ROIC | 12.69% |
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 20.88%. This is in the better half of the industry: CNQ outperforms 67.48% of its industry peers.
CNQ's Profit Margin has improved in the last couple of years.
The Operating Margin of CNQ (29.00%) is better than 60.19% of its industry peers.
In the last couple of years the Operating Margin of CNQ has grown nicely.
With a Gross Margin value of 51.51%, CNQ perfoms like the industry average, outperforming 56.80% of the companies in the same industry.
CNQ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29% | ||
| PM (TTM) | 20.88% | ||
| GM | 51.51% |
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
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.
CNQ has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CNQ has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.15 indicates that CNQ is not in any danger for bankruptcy at the moment.
CNQ's Altman-Z score of 3.15 is fine compared to the rest of the industry. CNQ outperforms 76.70% of its industry peers.
CNQ has a debt to FCF ratio of 1.12. This is a very positive value and a sign of high solvency as it would only need 1.12 years to pay back of all of its debts.
CNQ has a Debt to FCF ratio of 1.12. This is amongst the best in the industry. CNQ outperforms 85.44% of its industry peers.
CNQ has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CNQ (0.27) is better than 63.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.12 | ||
| Altman-Z | 3.15 |
ROIC/WACC1.75
WACC7.25%
2.3 Liquidity
A Current Ratio of 0.88 indicates that CNQ may have some problems paying its short term obligations.
CNQ has a worse Current ratio (0.88) than 66.99% of its industry peers.
A Quick Ratio of 0.59 indicates that CNQ may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.59, CNQ is doing worse than 77.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
CNQ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.86%.
Measured over the past years, CNQ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.85% on average per year.
Looking at the last year, CNQ shows a small growth in Revenue. The Revenue has grown by 0.21% in the last year.
The Revenue has been growing by 11.33% on average over the past years. This is quite good.
EPS 1Y (TTM)-48.86%
EPS 3YN/A
EPS 5Y14.85%
EPS Q2Q%-22.81%
Revenue 1Y (TTM)0.21%
Revenue growth 3Y28.65%
Revenue growth 5Y11.33%
Sales Q2Q%14.71%
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 0.40% on average per year.
Based on estimates for the next years, CNQ will show a decrease in Revenue. The Revenue will decrease by -1.78% on average per year.
EPS Next Y-27.94%
EPS Next 2Y-6.25%
EPS Next 3Y-3.47%
EPS Next 5Y0.4%
Revenue Next Year-0.01%
Revenue Next 2Y1.04%
Revenue Next 3Y1.64%
Revenue Next 5Y-1.78%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.18, the valuation of CNQ can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of CNQ is on the same level as its industry peers.
CNQ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 31.77.
A Price/Forward Earnings ratio of 10.57 indicates a reasonable valuation of CNQ.
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 rather cheap valuation when compared to the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.18 | ||
| Fwd PE | 10.57 |
4.2 Price Multiples
CNQ's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CNQ is valued a bit cheaper than the industry average as 64.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.99 | ||
| EV/EBITDA | 6.53 |
4.3 Compensation for Growth
The decent profitability rating of CNQ may justify a higher PE ratio.
A cheap valuation may be justified as CNQ's earnings are expected to decrease with -3.47% in the coming years.
PEG (NY)N/A
PEG (5Y)0.82
EPS Next 2Y-6.25%
EPS Next 3Y-3.47%
5. Dividend
5.1 Amount
CNQ has a Yearly Dividend Yield of 4.08%, which is a nice return.
CNQ's Dividend Yield is a higher than the industry average which is at 6.38.
CNQ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
5.2 History
On average, the dividend of CNQ grows each year by 22.66%, which is quite nice.
CNQ has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)22.66%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
54.28% 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.
DP54.28%
EPS Next 2Y-6.25%
EPS Next 3Y-3.47%
CANADIAN NATURAL RESOURCES
NYSE:CNQ (10/17/2024, 5:23:55 PM)
After market: 35.66 -0.04 (-0.11%)35.7
+0.43 (+1.22%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap75.78B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.18 | ||
| Fwd PE | 10.57 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.1% | ||
| ROE | 19.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29% | ||
| PM (TTM) | 20.88% | ||
| GM | 51.51% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-48.86%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-27.94%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.21%
Revenue growth 3Y28.65%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y