CANADIAN NATURAL RESOURCES (CNQ.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CNQ - CA1363851017 - Common Stock
49.47 CAD
+0.58 (+1.19%)
Taking everything into account, CNQ scores 5 out of 10 in our fundamental rating. CNQ was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. CNQ has an excellent profitability rating, but there are concerns on its financial health. CNQ has a decent growth rate and is not valued too expensively.
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.
1.2 Ratios
- CNQ's Return On Assets of 7.78% is amongst the best of the industry. CNQ outperforms 91.59% of its industry peers.
- CNQ's Return On Equity of 16.45% is amongst the best of the industry. CNQ outperforms 93.93% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 10.43%, CNQ belongs to the top of the industry, outperforming 94.86% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for CNQ is significantly above the industry average of 6.53%.
| 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
- With an excellent Profit Margin value of 17.23%, CNQ belongs to the best of the industry, outperforming 80.37% of the companies in the same industry.
- CNQ's Profit Margin has declined in the last couple of years.
- CNQ has a better Operating Margin (26.62%) than 81.78% of its industry peers.
- CNQ's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 48.85%, CNQ is doing good in the industry, outperforming 74.77% 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 | 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%
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.
- CNQ has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, CNQ has less shares outstanding
- Compared to 1 year ago, CNQ has a worse debt to assets ratio.
2.2 Solvency
- CNQ has an Altman-Z score of 2.66. 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 2.66, CNQ is in the better half of the industry, outperforming 74.77% of the companies in the same industry.
- A Debt/Equity ratio of 0.44 indicates that CNQ is not too dependend on debt financing.
- CNQ has a Debt to Equity ratio (0.44) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.66 |
ROIC/WACC1.42
WACC7.33%
2.3 Liquidity
- CNQ has a Current Ratio of 0.86. 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 Current ratio of CNQ (0.86) is comparable to the rest of the industry.
- A Quick Ratio of 0.53 indicates that CNQ may have some problems paying its short term obligations.
- CNQ has a Quick ratio of 0.53. This is in the lower half of the industry: CNQ underperforms 62.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.53 |
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%.
- 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)-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
- The Earnings Per Share is expected to grow by 0.19% on average over the next years.
- The Revenue is expected to grow by 1.12% on average over the next years.
EPS Next Y-1.65%
EPS Next 2Y-4.46%
EPS Next 3Y4.48%
EPS Next 5Y0.19%
Revenue Next Year6.9%
Revenue Next 2Y1.78%
Revenue Next 3Y1.68%
Revenue Next 5Y1.12%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- CNQ is valuated correctly with a Price/Earnings ratio of 13.52.
- 70.56% of the companies in the same industry are more expensive than CNQ, based on the Price/Earnings ratio.
- CNQ is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 15.64, CNQ is valued correctly.
- Based on the Price/Forward Earnings ratio, CNQ is valued a bit cheaper than the industry average as 64.49% of the companies are valued more expensively.
- CNQ is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.52 | ||
| Fwd PE | 15.64 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNQ indicates a rather cheap valuation: CNQ is cheaper than 85.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.33 |
4.3 Compensation for Growth
- CNQ has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y-4.46%
EPS Next 3Y4.48%
5. Dividend
5.1 Amount
- CNQ has a Yearly Dividend Yield of 4.81%, which is a nice return.
- CNQ's Dividend Yield is a higher than the industry average which is at 2.82.
- CNQ's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.81% |
5.2 History
- On average, the dividend of CNQ grows each year by 23.37%, which is quite nice.
- CNQ has been paying a dividend for at least 10 years, so it has a reliable track record.
- The dividend of CNQ decreased 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-4.46%
EPS Next 3Y4.48%
CANADIAN NATURAL RESOURCES / CNQ.CA FAQ
Can you provide the ChartMill fundamental rating for CANADIAN NATURAL RESOURCES?
ChartMill assigns a fundamental rating of 5 / 10 to CNQ.CA.
Can you provide the valuation status for CANADIAN NATURAL RESOURCES?
ChartMill assigns a valuation rating of 5 / 10 to CANADIAN NATURAL RESOURCES (CNQ.CA). This can be considered as Fairly Valued.
What is the profitability of CNQ stock?
CANADIAN NATURAL RESOURCES (CNQ.CA) has a profitability rating of 8 / 10.
What are the PE and PB ratios of CANADIAN NATURAL RESOURCES (CNQ.CA) stock?
The Price/Earnings (PE) ratio for CANADIAN NATURAL RESOURCES (CNQ.CA) is 13.52 and the Price/Book (PB) ratio is 2.55.
What is the financial health of CANADIAN NATURAL RESOURCES (CNQ.CA) stock?
The financial health rating of CANADIAN NATURAL RESOURCES (CNQ.CA) is 3 / 10.