CANADIAN NATURAL RESOURCES (CNQ.CA) Stock Fundamental Analysis
TSX:CNQ - Toronto Stock Exchange - CA1363851017 - Common Stock - Currency: CAD
Taking everything into account, CNQ scores 5 out of 10 in our fundamental rating. CNQ was compared to 207 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.
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
CNQ has a better Return On Assets (8.93%) than 89.37% of its industry peers.
The Return On Equity of CNQ (18.73%) is better than 91.79% of its industry peers.
With an excellent Return On Invested Capital value of 11.59%, CNQ belongs to the best of the industry, outperforming 92.75% 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 7.44%.
| 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 better Profit Margin (19.76%) than 78.26% of its industry peers.
CNQ's Profit Margin has declined in the last couple of years.
CNQ has a Operating Margin of 29.37%. This is amongst the best in the industry. CNQ outperforms 80.19% of its industry peers.
In the last couple of years the Operating Margin of CNQ has grown nicely.
CNQ has a better Gross Margin (50.07%) than 71.98% 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CNQ is creating some value.
CNQ has less shares outstanding than it did 1 year ago.
CNQ has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CNQ has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.54 indicates that CNQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CNQ (2.54) is better than 73.91% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 285.36, CNQ is in line with its industry, outperforming 51.21% of the companies in the same industry.
CNQ has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
CNQ's Debt to Equity ratio of 0.42 is in line compared to the rest of the industry. CNQ outperforms 51.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 285.36 | ||
| Altman-Z | 2.54 |
ROIC/WACC1.45
WACC7.97%
2.3 Liquidity
A Current Ratio of 0.84 indicates that CNQ may have some problems paying its short term obligations.
With a Current ratio value of 0.84, CNQ perfoms like the industry average, outperforming 57.00% of the companies in the same industry.
A Quick Ratio of 0.53 indicates that CNQ may have some problems paying its short term obligations.
CNQ has a worse Quick ratio (0.53) than 67.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
CNQ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.91%.
The Earnings Per Share has been growing by 16.79% on average over the past years. This is quite good.
Looking at the last year, CNQ shows a small growth in Revenue. The Revenue has grown by 7.78% in the last year.
The Revenue has been growing by 9.29% on average over the past years. This is quite good.
EPS 1Y (TTM)5.91%
EPS 3Y4.92%
EPS 5Y16.79%
EPS Q2Q%69.34%
Revenue 1Y (TTM)7.78%
Revenue growth 3Y5.86%
Revenue growth 5Y9.29%
Sales Q2Q%32.69%
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.
The Revenue is expected to grow by 0.18% on average over the next years.
EPS Next Y0.06%
EPS Next 2Y0.74%
EPS Next 3Y13.1%
EPS Next 5Y17.16%
Revenue Next Year17.47%
Revenue Next 2Y6.25%
Revenue Next 3Y4.24%
Revenue Next 5Y0.18%
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 stable.
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
A Price/Earnings ratio of 10.74 indicates a reasonable valuation of CNQ.
Based on the Price/Earnings ratio, CNQ is valued a bit cheaper than 67.15% of the companies in the same industry.
When comparing the Price/Earnings ratio of CNQ to the average of the S&P500 Index (27.54), we can say CNQ is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.03, CNQ is valued correctly.
CNQ's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.44. CNQ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.74 | ||
| Fwd PE | 12.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNQ is valued a bit cheaper than 78.26% of the companies in the same industry.
CNQ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1340.63 | ||
| EV/EBITDA | 5.87 |
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 excellent 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)183.52
PEG (5Y)0.64
EPS Next 2Y0.74%
EPS Next 3Y13.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.51%, CNQ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.83, CNQ pays a bit more dividend than its industry peers.
CNQ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.51% |
5.2 History
The dividend of CNQ is nicely growing with an annual growth rate of 23.37%!
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
59.88% 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.
DP59.88%
EPS Next 2Y0.74%
EPS Next 3Y13.1%
TSX:CNQ (7/18/2025, 7:00:00 PM)
42.3
-0.32 (-0.75%)
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 Cap88.48B
Analysts75.2
Price Target52.02 (22.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.51% |
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)-0.86%
PT rev (3m)-6.8%
EPS NQ rev (1m)-9.24%
EPS NQ rev (3m)-19.54%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-4.75%
Revenue NQ rev (3m)-3.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)10.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.74 | ||
| Fwd PE | 12.03 | ||
| P/S | 2.31 | ||
| P/FCF | 1340.63 | ||
| P/OCF | 5.98 | ||
| P/B | 2.19 | ||
| P/tB | 2.19 | ||
| EV/EBITDA | 5.87 |
EPS(TTM)3.94
EY9.31%
EPS(NY)3.52
Fwd EY8.31%
FCF(TTM)0.03
FCFY0.07%
OCF(TTM)7.08
OCFY16.73%
SpS18.33
BVpS19.34
TBVpS19.34
PEG (NY)183.52
PEG (5Y)0.64
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 | 2.54 |
F-Score4
WACC7.97%
ROIC/WACC1.45
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)5.91%
EPS 3Y4.92%
EPS 5Y16.79%
EPS Q2Q%69.34%
EPS Next Y0.06%
EPS Next 2Y0.74%
EPS Next 3Y13.1%
EPS Next 5Y17.16%
Revenue 1Y (TTM)7.78%
Revenue growth 3Y5.86%
Revenue growth 5Y9.29%
Sales Q2Q%32.69%
Revenue Next Year17.47%
Revenue Next 2Y6.25%
Revenue Next 3Y4.24%
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%