CANADIAN NATURAL RESOURCES (CNQ.CA) Stock Fundamental Analysis
TSX:CNQ - Toronto Stock Exchange - CA1363851017 - Common Stock - Currency: CAD
Overall CNQ gets a fundamental rating of 5 out of 10. We evaluated CNQ against 208 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. Finally CNQ also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CNQ was profitable.
CNQ had a positive operating cash flow in the past year.
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
The Return On Assets of CNQ (8.93%) is better than 90.87% of its industry peers.
Looking at the Return On Equity, with a value of 18.73%, CNQ belongs to the top of the industry, outperforming 91.83% of the companies in the same industry.
CNQ's Return On Invested Capital of 11.59% is amongst the best of the industry. CNQ outperforms 93.27% of its industry peers.
CNQ had an Average Return On Invested Capital over the past 3 years of 13.06%. This is significantly above the industry average of 7.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.93% | ||
| ROE | 18.73% | ||
| ROIC | 11.59% |
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 Profit Margin of 19.76%. This is in the better half of the industry: CNQ outperforms 78.37% of its industry peers.
CNQ's Profit Margin has declined in the last couple of years.
The Operating Margin of CNQ (29.37%) is better than 79.81% of its industry peers.
CNQ's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 50.07%, CNQ is doing good in the industry, outperforming 71.63% of the companies in the same industry.
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 | 29.37% | ||
| PM (TTM) | 19.76% | ||
| GM | 50.07% |
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.
The number of shares outstanding for CNQ has been reduced compared to 5 years ago.
CNQ has a worse debt/assets ratio than last year.
2.2 Solvency
CNQ has an Altman-Z score of 2.51. 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 2.51, CNQ is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Debt to FCF ratio of CNQ is 285.36, which is on the high side as it means it would take CNQ, 285.36 years of fcf income to pay off all of its debts.
CNQ has a Debt to FCF ratio (285.36) which is in line with its industry peers.
CNQ has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.42, CNQ perfoms like the industry average, outperforming 52.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 285.36 | ||
| Altman-Z | 2.51 |
ROIC/WACC1.48
WACC7.84%
2.3 Liquidity
A Current Ratio of 0.84 indicates that CNQ may have some problems paying its short term obligations.
CNQ's Current ratio of 0.84 is in line compared to the rest of the industry. CNQ outperforms 57.21% 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.
Looking at the Quick ratio, with a value of 0.53, CNQ is doing worse than 66.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
CNQ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.69%.
The Earnings Per Share has been growing by 16.79% on average over the past years. This is quite good.
CNQ shows a decrease in Revenue. In the last year, the revenue decreased by -0.87%.
Measured over the past years, CNQ shows a quite strong growth in Revenue. The Revenue has been growing by 9.29% on average per year.
EPS 1Y (TTM)-6.69%
EPS 3Y4.92%
EPS 5Y16.79%
EPS Q2Q%-20.41%
Revenue 1Y (TTM)-0.87%
Revenue growth 3Y5.86%
Revenue growth 5Y9.29%
Sales Q2Q%-4.61%
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 17.16% on average per year.
Based on estimates for the next years, CNQ will show a small growth in Revenue. The Revenue will grow by 0.18% on average per year.
EPS Next Y0.06%
EPS Next 2Y0.74%
EPS Next 3Y13.1%
EPS Next 5Y17.16%
Revenue Next Year7.29%
Revenue Next 2Y0.43%
Revenue Next 3Y2.97%
Revenue Next 5Y0.18%
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
With a Price/Earnings ratio of 10.95, the valuation of CNQ can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CNQ indicates a somewhat cheap valuation: CNQ is cheaper than 68.27% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.11. CNQ is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.71, 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.
When comparing the Price/Forward Earnings ratio of CNQ to the average of the S&P500 Index (35.78), we can say CNQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.95 | ||
| Fwd PE | 11.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNQ indicates a somewhat cheap valuation: CNQ is cheaper than 78.85% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as CNQ.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1304.48 | ||
| EV/EBITDA | 5.74 |
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.
The decent profitability rating of CNQ may justify a higher PE ratio.
CNQ's earnings are expected to grow with 13.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)187.22
PEG (5Y)0.65
EPS Next 2Y0.74%
EPS Next 3Y13.1%
5. Dividend
5.1 Amount
CNQ has a Yearly Dividend Yield of 5.62%, which is a nice return.
CNQ's Dividend Yield is rather good when compared to the industry average which is at 5.87. CNQ pays more dividend than 87.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, CNQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.62% |
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.
CNQ has decreased its dividend recently.
Dividend Growth(5Y)23.37%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
CNQ pays out 59.88% of its income as dividend. 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.
DP59.88%
EPS Next 2Y0.74%
EPS Next 3Y13.1%
TSX:CNQ (8/12/2025, 7:00:00 PM)
41.18
-0.02 (-0.05%)
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 Cap86.10B
Analysts75.83
Price Target52.68 (27.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.62% |
Yearly Dividend2.09
Dividend Growth(5Y)23.37%
DP59.88%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.24%
Min EPS beat(2)-0.9%
Max EPS beat(2)9.38%
EPS beat(4)3
Avg EPS beat(4)5.72%
Min EPS beat(4)-0.9%
Max EPS beat(4)9.38%
EPS beat(8)6
Avg EPS beat(8)4.92%
EPS beat(12)8
Avg EPS beat(12)3.4%
EPS beat(16)12
Avg EPS beat(16)4.38%
Revenue beat(2)2
Avg Revenue beat(2)3.27%
Min Revenue beat(2)2.38%
Max Revenue beat(2)4.16%
Revenue beat(4)3
Avg Revenue beat(4)1.9%
Min Revenue beat(4)-4.04%
Max Revenue beat(4)5.1%
Revenue beat(8)6
Avg Revenue beat(8)1.31%
Revenue beat(12)10
Avg Revenue beat(12)3.57%
Revenue beat(16)14
Avg Revenue beat(16)5.9%
PT rev (1m)0.5%
PT rev (3m)1.94%
EPS NQ rev (1m)-1.74%
EPS NQ rev (3m)-20.95%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-1.64%
Revenue NQ rev (3m)-4.86%
Revenue NY rev (1m)-8.67%
Revenue NY rev (3m)-8.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.95 | ||
| Fwd PE | 11.71 | ||
| P/S | 2.24 | ||
| P/FCF | 1304.48 | ||
| P/OCF | 5.82 | ||
| P/B | 2.13 | ||
| P/tB | 2.13 | ||
| EV/EBITDA | 5.74 |
EPS(TTM)3.76
EY9.13%
EPS(NY)3.52
Fwd EY8.54%
FCF(TTM)0.03
FCFY0.08%
OCF(TTM)7.08
OCFY17.19%
SpS18.34
BVpS19.35
TBVpS19.35
PEG (NY)187.22
PEG (5Y)0.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.93% | ||
| ROE | 18.73% | ||
| ROCE | 14.79% | ||
| ROIC | 11.59% | ||
| ROICexc | 11.6% | ||
| ROICexgc | 11.6% | ||
| OM | 29.37% | ||
| PM (TTM) | 19.76% | ||
| GM | 50.07% | ||
| FCFM | 0.17% |
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 | 0.42 | ||
| Debt/FCF | 285.36 | ||
| Debt/EBITDA | 0.94 | ||
| Cap/Depr | 209.97% | ||
| Cap/Sales | 38.42% | ||
| Interest Coverage | 17.01 | ||
| Cash Conversion | 80.97% | ||
| Profit Quality | 0.87% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 2.51 |
F-Score4
WACC7.84%
ROIC/WACC1.48
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)-6.69%
EPS 3Y4.92%
EPS 5Y16.79%
EPS Q2Q%-20.41%
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%-4.61%
Revenue Next Year7.29%
Revenue Next 2Y0.43%
Revenue Next 3Y2.97%
Revenue Next 5Y0.18%
EBIT growth 1Y15.31%
EBIT growth 3Y0.75%
EBIT growth 5Y11.71%
EBIT Next Year115.1%
EBIT Next 3Y25.61%
EBIT Next 5Y16.75%
FCF growth 1Y-99.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-17%
OCF growth 3Y-2.58%
OCF growth 5Y8.68%