CANADIAN NATURAL RESOURCES (CNQ.CA) Stock Fundamental Analysis
TSX:CNQ - CA1363851017 - Common Stock
43.08 CAD
-1.03 (-2.34%)
Overall CNQ gets a fundamental rating of 5 out of 10. We evaluated CNQ against 215 industry peers in the Oil, Gas & Consumable Fuels industry. While CNQ belongs to the best of the industry regarding profitability, there are concerns on its financial health. CNQ has a correct valuation and a medium 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.
CNQ had positive earnings in 4 of the past 5 years.
CNQ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 9.76%, CNQ belongs to the best of the industry, outperforming 91.16% of the companies in the same industry.
CNQ has a better Return On Equity (20.15%) than 93.95% of its industry peers.
CNQ has a better Return On Invested Capital (10.99%) than 93.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CNQ is significantly above the industry average of 6.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.76% | ||
| ROE | 20.15% | ||
| ROIC | 10.99% |
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 (21.90%) than 84.65% of its industry peers.
In the last couple of years the Profit Margin of CNQ has declined.
CNQ's Operating Margin of 28.32% is fine compared to the rest of the industry. CNQ outperforms 80.00% of its industry peers.
In the last couple of years the Operating Margin of CNQ has grown nicely.
CNQ's Gross Margin of 49.63% is fine compared to the rest of the industry. CNQ outperforms 73.02% of its industry peers.
CNQ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.32% | ||
| PM (TTM) | 21.9% | ||
| GM | 49.63% |
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 just above the Cost of Capital (WACC), so CNQ is still creating some value.
The number of shares outstanding for CNQ has been reduced compared to 1 year ago.
CNQ has less shares outstanding than it did 5 years ago.
CNQ has a worse debt/assets ratio than last year.
2.2 Solvency
CNQ has an Altman-Z score of 2.59. 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.
With a decent Altman-Z score value of 2.59, CNQ is doing good in the industry, outperforming 75.35% of the companies in the same industry.
CNQ has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
CNQ has a Debt to Equity ratio (0.41) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.59 |
ROIC/WACC1.38
WACC7.99%
2.3 Liquidity
A Current Ratio of 0.85 indicates that CNQ may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.85, CNQ is in line with its industry, outperforming 56.74% of the companies in the same industry.
CNQ has a Quick Ratio of 0.85. This is a bad value and indicates that CNQ is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CNQ (0.54) is worse than 72.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
CNQ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.45%.
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 a small growth in Revenue. In the last year, the Revenue has grown by 3.42%.
CNQ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.29% yearly.
EPS 1Y (TTM)-6.45%
EPS 3Y4.92%
EPS 5Y16.79%
EPS Q2Q%-19.32%
Revenue 1Y (TTM)3.42%
Revenue growth 3Y5.86%
Revenue growth 5Y9.29%
Sales Q2Q%-3.9%
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 17.68% on average per year.
CNQ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.93% yearly.
EPS Next Y0.7%
EPS Next 2Y-3.67%
EPS Next 3Y15.52%
EPS Next 5Y17.68%
Revenue Next Year7.36%
Revenue Next 2Y0.52%
Revenue Next 3Y2.52%
Revenue Next 5Y0.93%
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
Based on the Price/Earnings ratio of 11.43, the valuation of CNQ can be described as reasonable.
CNQ's Price/Earnings ratio is a bit cheaper when compared to the industry. CNQ is cheaper than 67.91% of the companies in the same industry.
CNQ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.84.
Based on the Price/Forward Earnings ratio of 13.40, the valuation of CNQ can be described as correct.
CNQ's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CNQ is cheaper than 62.33% of the companies in the same industry.
CNQ is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.48, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.43 | ||
| Fwd PE | 13.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNQ is valued a bit cheaper than 79.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.18 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
CNQ's earnings are expected to grow with 15.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)16.35
PEG (5Y)0.68
EPS Next 2Y-3.67%
EPS Next 3Y15.52%
5. Dividend
5.1 Amount
CNQ has a Yearly Dividend Yield of 5.42%, which is a nice return.
Compared to an average industry Dividend Yield of 6.00, CNQ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, CNQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
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.
CNQ has decreased its dividend recently.
Dividend Growth(5Y)23.37%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
55.82% of the earnings are spent on dividend by CNQ. This is a bit on the high side, but may be sustainable.
The dividend of CNQ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP55.82%
EPS Next 2Y-3.67%
EPS Next 3Y15.52%
TSX:CNQ (9/3/2025, 7:00:00 PM)
43.08
-1.03 (-2.34%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners77.66%
Inst Owner ChangeN/A
Ins Owners2.18%
Ins Owner ChangeN/A
Market Cap90.00B
Analysts75.83
Price Target53.7 (24.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
Yearly Dividend2.09
Dividend Growth(5Y)23.37%
DP55.82%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.15%
Min EPS beat(2)9.38%
Max EPS beat(2)12.93%
EPS beat(4)3
Avg EPS beat(4)7%
Min EPS beat(4)-0.9%
Max EPS beat(4)12.93%
EPS beat(8)6
Avg EPS beat(8)5.45%
EPS beat(12)8
Avg EPS beat(12)3.79%
EPS beat(16)12
Avg EPS beat(16)4.8%
Revenue beat(2)1
Avg Revenue beat(2)0.78%
Min Revenue beat(2)-2.6%
Max Revenue beat(2)4.16%
Revenue beat(4)2
Avg Revenue beat(4)-0.02%
Min Revenue beat(4)-4.04%
Max Revenue beat(4)4.16%
Revenue beat(8)5
Avg Revenue beat(8)0.82%
Revenue beat(12)9
Avg Revenue beat(12)2.08%
Revenue beat(16)13
Avg Revenue beat(16)5.56%
PT rev (1m)3.23%
PT rev (3m)3.91%
EPS NQ rev (1m)7.87%
EPS NQ rev (3m)-5.72%
EPS NY rev (1m)0.64%
EPS NY rev (3m)0.64%
Revenue NQ rev (1m)3.03%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-8.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.43 | ||
| Fwd PE | 13.4 | ||
| P/S | 2.37 | ||
| P/FCF | N/A | ||
| P/OCF | 6.51 | ||
| P/B | 2.18 | ||
| P/tB | 2.18 | ||
| EV/EBITDA | 6.18 |
EPS(TTM)3.77
EY8.75%
EPS(NY)3.22
Fwd EY7.46%
FCF(TTM)-0.57
FCFYN/A
OCF(TTM)6.62
OCFY15.37%
SpS18.19
BVpS19.77
TBVpS19.77
PEG (NY)16.35
PEG (5Y)0.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.76% | ||
| ROE | 20.15% | ||
| ROCE | 14.02% | ||
| ROIC | 10.99% | ||
| ROICexc | 11% | ||
| ROICexgc | 11% | ||
| OM | 28.32% | ||
| PM (TTM) | 21.9% | ||
| GM | 49.63% | ||
| 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
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 | 0.41 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.94 | ||
| Cap/Depr | 210.68% | ||
| Cap/Sales | 39.55% | ||
| Interest Coverage | 13.92 | ||
| Cash Conversion | 77.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 2.59 |
F-Score4
WACC7.99%
ROIC/WACC1.38
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)-6.45%
EPS 3Y4.92%
EPS 5Y16.79%
EPS Q2Q%-19.32%
EPS Next Y0.7%
EPS Next 2Y-3.67%
EPS Next 3Y15.52%
EPS Next 5Y17.68%
Revenue 1Y (TTM)3.42%
Revenue growth 3Y5.86%
Revenue growth 5Y9.29%
Sales Q2Q%-3.9%
Revenue Next Year7.36%
Revenue Next 2Y0.52%
Revenue Next 3Y2.52%
Revenue Next 5Y0.93%
EBIT growth 1Y1%
EBIT growth 3Y0.75%
EBIT growth 5Y11.71%
EBIT Next Year115.1%
EBIT Next 3Y25.61%
EBIT Next 5Y17.93%
FCF growth 1Y-112.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.79%
OCF growth 3Y-2.58%
OCF growth 5Y8.68%