CANADIAN NATURAL RESOURCES (CNQ.CA) Stock Fundamental Analysis
TSX:CNQ - Toronto Stock Exchange - CA1363851017 - Common Stock - Currency: CAD
CNQ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 218 industry peers in the Oil, Gas & Consumable Fuels industry. While CNQ has a great profitability rating, there are quite some 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.
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
With an excellent Return On Assets value of 7.15%, CNQ belongs to the best of the industry, outperforming 88.99% of the companies in the same industry.
The Return On Equity of CNQ (15.47%) is better than 87.16% of its industry peers.
CNQ has a better Return On Invested Capital (10.07%) than 91.28% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CNQ is significantly above the industry average of 7.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.15% | ||
| ROE | 15.47% | ||
| ROIC | 10.07% |
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's Profit Margin of 17.12% is fine compared to the rest of the industry. CNQ outperforms 79.36% of its industry peers.
CNQ's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 27.28%, CNQ belongs to the best of the industry, outperforming 80.73% of the companies in the same industry.
In the last couple of years the Operating Margin of CNQ has grown nicely.
CNQ's Gross Margin of 49.30% is fine compared to the rest of the industry. CNQ outperforms 71.10% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.28% | ||
| PM (TTM) | 17.12% | ||
| GM | 49.3% |
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
CNQ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CNQ has less shares outstanding
The number of shares outstanding for CNQ has been reduced compared to 5 years ago.
The debt/assets ratio for CNQ is higher compared to a year ago.
2.2 Solvency
CNQ has an Altman-Z score of 2.32. 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 better Altman-Z score (2.32) than 76.15% of its industry peers.
CNQ has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CNQ (0.45) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.32 |
ROIC/WACC1.14
WACC8.83%
2.3 Liquidity
A Current Ratio of 0.77 indicates that CNQ may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.77, CNQ is in line with its industry, outperforming 51.83% of the companies in the same industry.
CNQ has a Quick Ratio of 0.77. 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 (0.48) is worse than 69.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
CNQ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.70%.
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.
The Revenue has decreased by -0.87% in the past year.
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)-10.7%
EPS 3Y4.92%
EPS 5Y16.79%
EPS Q2Q%-20.51%
Revenue 1Y (TTM)-0.87%
Revenue growth 3Y5.86%
Revenue growth 5Y9.29%
Sales Q2Q%-0.89%
3.2 Future
The Earnings Per Share is expected to grow by 17.16% on average over the next years. This is quite good.
Based on estimates for the next years, CNQ will show a small growth in Revenue. The Revenue will grow by 0.17% on average per year.
EPS Next Y0.06%
EPS Next 2Y0.74%
EPS Next 3Y13.1%
EPS Next 5Y17.16%
Revenue Next Year17.17%
Revenue Next 2Y6.43%
Revenue Next 3Y4.3%
Revenue Next 5Y0.17%
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.
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
A Price/Earnings ratio of 11.54 indicates a reasonable 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 67.43% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.22, CNQ is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.55, the valuation of CNQ can be described as reasonable.
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 valuation a bit cheaper than the S&P500 average which is at 20.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.54 | ||
| Fwd PE | 11.55 |
4.2 Price Multiples
CNQ's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CNQ is cheaper than 75.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.36 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CNQ's earnings are expected to grow with 13.10% in the coming years.
PEG (NY)197.25
PEG (5Y)0.69
EPS Next 2Y0.74%
EPS Next 3Y13.1%
5. Dividend
5.1 Amount
CNQ has a Yearly Dividend Yield of 5.78%, which is a nice return.
Compared to an average industry Dividend Yield of 7.45, CNQ pays a better dividend. On top of this CNQ pays more dividend than 82.11% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, CNQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.78% |
5.2 History
On average, the dividend of CNQ grows each year by 23.37%, which is quite nice.
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
72.54% of the earnings are spent on dividend by CNQ. This is not a sustainable payout ratio.
The dividend of CNQ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP72.54%
EPS Next 2Y0.74%
EPS Next 3Y13.1%
TSX:CNQ (5/2/2025, 7:00:00 PM)
40.04
+0.04 (+0.1%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners74.44%
Inst Owner ChangeN/A
Ins Owners4.4%
Ins Owner ChangeN/A
Market Cap83.99B
Analysts74.4
Price Target52.87 (32.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.78% |
Yearly Dividend2.09
Dividend Growth(5Y)23.37%
DP72.54%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.84%
Min EPS beat(2)-0.9%
Max EPS beat(2)6.58%
EPS beat(4)2
Avg EPS beat(4)1.51%
Min EPS beat(4)-7.49%
Max EPS beat(4)7.83%
EPS beat(8)5
Avg EPS beat(8)3.51%
EPS beat(12)8
Avg EPS beat(12)3.48%
EPS beat(16)12
Avg EPS beat(16)5.15%
Revenue beat(2)1
Avg Revenue beat(2)-0.83%
Min Revenue beat(2)-4.04%
Max Revenue beat(2)2.38%
Revenue beat(4)2
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-4.04%
Max Revenue beat(4)5.1%
Revenue beat(8)6
Avg Revenue beat(8)2.03%
Revenue beat(12)10
Avg Revenue beat(12)4.92%
Revenue beat(16)14
Avg Revenue beat(16)6.19%
PT rev (1m)-6.28%
PT rev (3m)-8.22%
EPS NQ rev (1m)-4.33%
EPS NQ rev (3m)31.84%
EPS NY rev (1m)-8.23%
EPS NY rev (3m)-1.44%
Revenue NQ rev (1m)2.36%
Revenue NQ rev (3m)9.76%
Revenue NY rev (1m)10.7%
Revenue NY rev (3m)11.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.54 | ||
| Fwd PE | 11.55 | ||
| P/S | 2.36 | ||
| P/FCF | N/A | ||
| P/OCF | 6.27 | ||
| P/B | 2.13 | ||
| P/tB | 2.13 | ||
| EV/EBITDA | 6.36 |
EPS(TTM)3.47
EY8.67%
EPS(NY)3.47
Fwd EY8.66%
FCF(TTM)-0.55
FCFYN/A
OCF(TTM)6.38
OCFY15.94%
SpS17
BVpS18.82
TBVpS18.82
PEG (NY)197.25
PEG (5Y)0.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.15% | ||
| ROE | 15.47% | ||
| ROCE | 12.84% | ||
| ROIC | 10.07% | ||
| ROICexc | 10.09% | ||
| ROICexgc | 10.09% | ||
| OM | 27.28% | ||
| PM (TTM) | 17.12% | ||
| GM | 49.3% | ||
| 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 Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.09 | ||
| Cap/Depr | 217.72% | ||
| Cap/Sales | 40.8% | ||
| Interest Coverage | 16.6 | ||
| Cash Conversion | 81.58% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 2.32 |
F-Score4
WACC8.83%
ROIC/WACC1.14
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)-10.7%
EPS 3Y4.92%
EPS 5Y16.79%
EPS Q2Q%-20.51%
EPS Next Y0.06%
EPS Next 2Y0.74%
EPS Next 3Y13.1%
EPS Next 5Y17.16%
Revenue 1Y (TTM)-0.87%
Revenue growth 3Y5.86%
Revenue growth 5Y9.29%
Sales Q2Q%-0.89%
Revenue Next Year17.17%
Revenue Next 2Y6.43%
Revenue Next 3Y4.3%
Revenue Next 5Y0.17%
EBIT growth 1Y-7.04%
EBIT growth 3Y0.75%
EBIT growth 5Y11.71%
EBIT Next Year120.7%
EBIT Next 3Y30.15%
EBIT Next 5Y16.52%
FCF growth 1Y-115.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y8.36%
OCF growth 3Y-2.58%
OCF growth 5Y8.68%