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 207 industry peers in the Oil, Gas & Consumable Fuels industry. CNQ scores excellent on profitability, but there are concerns on its financial health. CNQ has a decent growth rate and is not valued too expensively. CNQ also has an excellent dividend rating.
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.
Of the past 5 years CNQ 4 years were profitable.
Each year in the past 5 years CNQ had a positive operating cash flow.
1.2 Ratios
CNQ has a better Return On Assets (8.93%) than 89.37% of its industry peers.
CNQ has a better Return On Equity (18.73%) than 93.24% of its industry peers.
CNQ has a Return On Invested Capital of 11.59%. This is amongst the best in the industry. CNQ outperforms 91.79% 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 7.37%.
| 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's Profit Margin of 19.76% is fine compared to the rest of the industry. CNQ outperforms 79.23% of its industry peers.
In the last couple of years the Profit Margin of CNQ has declined.
With an excellent Operating Margin value of 29.37%, CNQ belongs to the best of the industry, outperforming 80.19% of the companies in the same industry.
CNQ's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 50.07%, CNQ is in the better half of the industry, outperforming 71.01% 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
CNQ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for CNQ is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.56 indicates that CNQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CNQ (2.56) is better than 76.81% 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.
With a Debt to FCF ratio value of 285.36, CNQ perfoms like the industry average, outperforming 51.69% 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 48.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 285.36 | ||
| Altman-Z | 2.56 |
ROIC/WACC1.33
WACC8.71%
2.3 Liquidity
CNQ has a Current 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 Current ratio of 0.84. This is comparable to the rest of the industry: CNQ outperforms 55.07% 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's Quick ratio of 0.53 is on the low side compared to the rest of the industry. CNQ is outperformed by 68.60% 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 4.97%.
CNQ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.79% yearly.
Looking at the last year, CNQ shows a small growth in Revenue. The Revenue has grown by 7.78% in the last 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)4.97%
EPS 3Y4.92%
EPS 5Y16.79%
EPS Q2Q%64.23%
Revenue 1Y (TTM)7.78%
Revenue growth 3Y5.86%
Revenue growth 5Y9.29%
Sales Q2Q%28.37%
3.2 Future
The Earnings Per Share is expected to grow by 17.16% on average over the next years. This is quite good.
CNQ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.17% yearly.
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 5Y0.17%
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.
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 10.90 indicates a reasonable valuation of CNQ.
CNQ's Price/Earnings ratio is a bit cheaper when compared to the industry. CNQ is cheaper than 66.18% of the companies in the same industry.
CNQ is valuated cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.12, CNQ is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as CNQ.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, CNQ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 12.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNQ is valued a bit cheaper than 76.81% 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 | 1354.27 | ||
| EV/EBITDA | 5.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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)186.29
PEG (5Y)0.65
EPS Next 2Y0.74%
EPS Next 3Y13.1%
5. Dividend
5.1 Amount
CNQ has a Yearly Dividend Yield of 5.45%, which is a nice return.
CNQ's Dividend Yield is rather good when compared to the industry average which is at 6.56. CNQ pays more dividend than 80.19% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, CNQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.45% |
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
59.88% of the earnings are spent on dividend by CNQ. 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 (5/23/2025, 7:00:00 PM)
42.61
-0.16 (-0.37%)
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 Cap89.38B
Analysts75.2
Price Target51.68 (21.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.45% |
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)2.59%
Min EPS beat(2)-0.9%
Max EPS beat(2)6.08%
EPS beat(4)3
Avg EPS beat(4)4.9%
Min EPS beat(4)-0.9%
Max EPS beat(4)7.83%
EPS beat(8)6
Avg EPS beat(8)4.5%
EPS beat(12)8
Avg EPS beat(12)3.12%
EPS beat(16)12
Avg EPS beat(16)4.17%
Revenue beat(2)2
Avg Revenue beat(2)1.57%
Min Revenue beat(2)0.77%
Max Revenue beat(2)2.38%
Revenue beat(4)3
Avg Revenue beat(4)1.05%
Min Revenue beat(4)-4.04%
Max Revenue beat(4)5.1%
Revenue beat(8)6
Avg Revenue beat(8)0.89%
Revenue beat(12)10
Avg Revenue beat(12)3.28%
Revenue beat(16)14
Avg Revenue beat(16)5.69%
PT rev (1m)-7.41%
PT rev (3m)-9.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.68%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.34%
Revenue NY rev (1m)10.99%
Revenue NY rev (3m)11.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 12.12 | ||
| P/S | 2.33 | ||
| P/FCF | 1354.27 | ||
| P/OCF | 6.04 | ||
| P/B | 2.21 | ||
| P/tB | 2.21 | ||
| EV/EBITDA | 5.93 |
EPS(TTM)3.91
EY9.18%
EPS(NY)3.52
Fwd EY8.25%
FCF(TTM)0.03
FCFY0.07%
OCF(TTM)7.06
OCFY16.56%
SpS18.28
BVpS19.28
TBVpS19.28
PEG (NY)186.29
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 | 2.56 |
F-Score4
WACC8.71%
ROIC/WACC1.33
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)4.97%
EPS 3Y4.92%
EPS 5Y16.79%
EPS Q2Q%64.23%
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%28.37%
Revenue Next Year17.47%
Revenue Next 2Y6.25%
Revenue Next 3Y4.24%
Revenue Next 5Y0.17%
EBIT growth 1Y15.31%
EBIT growth 3Y0.75%
EBIT growth 5Y11.71%
EBIT Next Year120.7%
EBIT Next 3Y30.15%
EBIT Next 5Y16.52%
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%