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CANADIAN NATURAL RESOURCES (CNQ.CA) Stock Fundamental Analysis

TSX:CNQ - Toronto Stock Exchange - CA1363851017 - Common Stock - Currency: CAD

43.13  +0.23 (+0.54%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to CNQ. CNQ was compared to 220 industry peers in the Oil, Gas & Consumable Fuels industry. CNQ scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CNQ has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

CNQ had positive earnings in the past year.
In the past year CNQ had a positive cash flow from operations.
CNQ had positive earnings in 4 of the past 5 years.
Each year in the past 5 years CNQ had a positive operating cash flow.
CNQ.CA Yearly Net Income VS EBIT VS OCF VS FCFCNQ.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B

1.2 Ratios

Looking at the Return On Assets, with a value of 10.12%, CNQ belongs to the top of the industry, outperforming 89.76% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.04%, CNQ belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
CNQ has a Return On Invested Capital of 11.94%. This is amongst the best in the industry. CNQ outperforms 91.22% of its industry peers.
CNQ had an Average Return On Invested Capital over the past 3 years of 13.64%. This is significantly above the industry average of 7.79%.
Industry RankSector 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
CNQ.CA Yearly ROA, ROE, ROICCNQ.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20

1.3 Margins

CNQ has a better Profit Margin (21.25%) than 78.05% of its industry peers.
CNQ's Profit Margin has improved in the last couple of years.
CNQ has a Operating Margin of 27.86%. This is in the better half of the industry: CNQ outperforms 78.05% of its industry peers.
In the last couple of years the Operating Margin of CNQ has grown nicely.
CNQ's Gross Margin of 50.27% is fine compared to the rest of the industry. CNQ outperforms 68.29% of its industry peers.
In the last couple of years the Gross Margin of CNQ has remained more or less at the same level.
Industry RankSector 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%
CNQ.CA Yearly Profit, Operating, Gross MarginsCNQ.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40

7

2. Health

2.1 Basic Checks

CNQ has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
CNQ has a better debt/assets ratio than last year.
CNQ.CA Yearly Shares OutstandingCNQ.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B
CNQ.CA Yearly Total Debt VS Total AssetsCNQ.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B

2.2 Solvency

CNQ has an Altman-Z score of 2.97. 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.
Looking at the Altman-Z score, with a value of 2.97, CNQ is in the better half of the industry, outperforming 78.54% of the companies in the same industry.
CNQ has a debt to FCF ratio of 1.19. This is a very positive value and a sign of high solvency as it would only need 1.19 years to pay back of all of its debts.
CNQ has a Debt to FCF ratio of 1.19. This is amongst the best in the industry. CNQ outperforms 90.24% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that CNQ is not too dependend on debt financing.
CNQ has a Debt to Equity ratio of 0.24. This is comparable to the rest of the industry: CNQ outperforms 55.61% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 1.19
Altman-Z 2.97
ROIC/WACC1.63
WACC7.33%
CNQ.CA Yearly LT Debt VS Equity VS FCFCNQ.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10B 20B 30B

2.3 Liquidity

A Current Ratio of 0.84 indicates that CNQ may have some problems paying its short term obligations.
CNQ has a Current ratio of 0.84. This is comparable to the rest of the industry: CNQ outperforms 47.80% of its industry peers.
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 has a Quick ratio of 0.53. This is in the lower half of the industry: CNQ underperforms 72.68% of its industry peers.
CNQ does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 0.84
Quick Ratio 0.53
CNQ.CA Yearly Current Assets VS Current LiabilitesCNQ.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B

3

3. Growth

3.1 Past

CNQ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.41%.
The Earnings Per Share has been growing by 23.97% on average over the past years. This is a very strong growth
CNQ shows a decrease in Revenue. In the last year, the revenue decreased by -1.01%.
CNQ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.33% yearly.
EPS 1Y (TTM)0.41%
EPS 3YN/A
EPS 5Y23.97%
EPS Q2Q%-25.1%
Revenue 1Y (TTM)-1.01%
Revenue growth 3Y28.65%
Revenue growth 5Y11.33%
Sales Q2Q%-10.13%

3.2 Future

The Earnings Per Share is expected to grow by 6.84% on average over the next years.
CNQ is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.06% yearly.
EPS Next Y-7.55%
EPS Next 2Y-3.22%
EPS Next 3Y1.42%
EPS Next 5Y6.84%
Revenue Next Year-0.98%
Revenue Next 2Y1.96%
Revenue Next 3Y1.97%
Revenue Next 5Y-0.06%

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.
CNQ.CA Yearly Revenue VS EstimatesCNQ.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 10B 20B 30B 40B
CNQ.CA Yearly EPS VS EstimatesCNQ.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 2 4 6

6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 11.63, which indicates a very decent valuation of CNQ.
Compared to the rest of the industry, the Price/Earnings ratio of CNQ indicates a somewhat cheap valuation: CNQ is cheaper than 62.44% of the companies listed in the same industry.
CNQ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.27.
The Price/Forward Earnings ratio is 11.87, which indicates a very decent 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 96.48. CNQ is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 11.63
Fwd PE 11.87
CNQ.CA Price Earnings VS Forward Price EarningsCNQ.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CNQ is valued a bit cheaper than 74.15% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CNQ indicates a somewhat cheap valuation: CNQ is cheaper than 68.78% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 9.36
EV/EBITDA 6.02
CNQ.CA Per share dataCNQ.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

The excellent profitability rating of CNQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y-3.22%
EPS Next 3Y1.42%

6

5. Dividend

5.1 Amount

CNQ has a Yearly Dividend Yield of 5.12%, which is a nice return.
CNQ's Dividend Yield is a higher than the industry average which is at 6.44.
Compared to an average S&P500 Dividend Yield of 2.31, CNQ pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.12%

5.2 History

On average, the dividend of CNQ grows each year by 22.66%, which is quite nice.
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)22.66%
Div Incr Years1
Div Non Decr Years1
CNQ.CA Yearly Dividends per shareCNQ.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5 2

5.3 Sustainability

56.60% 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.
DP56.6%
EPS Next 2Y-3.22%
EPS Next 3Y1.42%
CNQ.CA Yearly Income VS Free CF VS DividendCNQ.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B
CNQ.CA Dividend Payout.CNQ.CA Dividend Payout, showing the Payout Ratio.CNQ.CA Dividend Payout.PayoutRetained Earnings

CANADIAN NATURAL RESOURCES

TSX:CNQ (2/13/2025, 7:00:00 PM)

43.13

+0.23 (+0.54%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)10-31 2024-10-31/bmo
Earnings (Next)03-06 2025-03-06/amc
Inst Owners78.16%
Inst Owner ChangeN/A
Ins Owners4.34%
Ins Owner ChangeN/A
Market Cap90.86B
Analysts72.8
Price Target57.09 (32.37%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.12%
Yearly Dividend1.79
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)-0.89%
PT rev (3m)0.71%
EPS NQ rev (1m)4.1%
EPS NQ rev (3m)-16.69%
EPS NY rev (1m)3.77%
EPS NY rev (3m)3.91%
Revenue NQ rev (1m)3.16%
Revenue NQ rev (3m)-5.01%
Revenue NY rev (1m)1.41%
Revenue NY rev (3m)1.39%
Valuation
Industry RankSector Rank
PE 11.63
Fwd PE 11.87
P/S 2.54
P/FCF 9.36
P/OCF 6.15
P/B 2.28
P/tB 2.28
EV/EBITDA 6.02
EPS(TTM)3.71
EY8.6%
EPS(NY)3.63
Fwd EY8.43%
FCF(TTM)4.61
FCFY10.69%
OCF(TTM)7.01
OCFY16.25%
SpS16.97
BVpS18.94
TBVpS18.94
PEG (NY)N/A
PEG (5Y)0.48
Profitability
Industry RankSector 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 RankSector 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 2.97
F-Score8
WACC7.33%
ROIC/WACC1.63
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)0.41%
EPS 3YN/A
EPS 5Y23.97%
EPS Q2Q%-25.1%
EPS Next Y-7.55%
EPS Next 2Y-3.22%
EPS Next 3Y1.42%
EPS Next 5Y6.84%
Revenue 1Y (TTM)-1.01%
Revenue growth 3Y28.65%
Revenue growth 5Y11.33%
Sales Q2Q%-10.13%
Revenue Next Year-0.98%
Revenue Next 2Y1.96%
Revenue Next 3Y1.97%
Revenue Next 5Y-0.06%
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%