CANADIAN NATURAL RESOURCES (CNQ.CA) Stock Fundamental Analysis
Canada - TSX:CNQ - CA1363851017 - Common Stock
42.19 CAD
-0.3 (-0.71%)
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. 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.
1. Profitability
1.1 Basic Checks
CNQ had positive earnings in the past year.
CNQ had a positive operating cash flow in the past year.
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 9.76% is amongst the best of the industry. CNQ outperforms 91.30% of its industry peers.
The Return On Equity of CNQ (20.15%) is better than 94.69% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.99%, CNQ belongs to the top of the industry, outperforming 94.20% of the companies in the same industry.
CNQ had an Average Return On Invested Capital over the past 3 years of 13.06%. This is significantly above the industry average of 6.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.76% | ||
| ROE | 20.15% | ||
| ROIC | 10.99% |
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 21.90%. This is amongst the best in the industry. CNQ outperforms 84.06% of its industry peers.
In the last couple of years the Profit Margin of CNQ has declined.
Looking at the Operating Margin, with a value of 28.32%, CNQ belongs to the top 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 49.63%, CNQ is in the better half of the industry, outperforming 73.91% 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 | 28.32% | ||
| PM (TTM) | 21.9% | ||
| GM | 49.63% |
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 well above the Cost of Capital (WACC), which means it is creating 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.
The debt/assets ratio for CNQ is higher compared to a year ago.
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.
With a decent Altman-Z score value of 2.54, CNQ is doing good in the industry, outperforming 75.36% of the companies in the same industry.
A Debt/Equity ratio of 0.41 indicates that CNQ is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.41, CNQ is in line with its industry, outperforming 51.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.54 |
ROIC/WACC1.53
WACC7.18%
2.3 Liquidity
CNQ has a Current Ratio of 0.85. 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 (0.85) is comparable to the rest of the industry.
A Quick Ratio of 0.54 indicates that CNQ may have some problems paying its short term obligations.
CNQ's Quick ratio of 0.54 is on the low side compared to the rest of the industry. CNQ is outperformed by 74.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The earnings per share for CNQ have decreased by -6.45% in the last year.
The Earnings Per Share has been growing by 16.79% on average over the past years. This is quite good.
The Revenue has been growing slightly by 3.42% in the past year.
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)-6.45%
EPS 3Y4.92%
EPS 5Y16.79%
EPS Q2Q%-19.32%
Revenue 1Y (TTM)3.42%
Revenue growth 3Y5.86%
Revenue growth 5Y9.29%
Sales Q2Q%-3.9%
3.2 Future
CNQ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.58% yearly.
CNQ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.17% yearly.
EPS Next Y-0.49%
EPS Next 2Y-5.37%
EPS Next 3Y15.52%
EPS Next 5Y17.58%
Revenue Next Year7.16%
Revenue Next 2Y0.74%
Revenue Next 3Y3%
Revenue Next 5Y1.17%
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
Based on the Price/Earnings ratio of 11.19, the valuation of CNQ can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CNQ indicates a somewhat cheap valuation: CNQ is cheaper than 67.63% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.42. CNQ is valued rather cheaply when compared to this.
CNQ is valuated correctly with a Price/Forward Earnings ratio of 13.60.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CNQ is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, CNQ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 13.6 |
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 80.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.95 |
4.3 Compensation for Growth
The excellent profitability rating of CNQ may justify a higher PE ratio.
A more expensive valuation may be justified as CNQ's earnings are expected to grow with 15.52% in the coming years.
PEG (NY)N/A
PEG (5Y)0.67
EPS Next 2Y-5.37%
EPS Next 3Y15.52%
5. Dividend
5.1 Amount
CNQ has a Yearly Dividend Yield of 5.53%, which is a nice return.
CNQ's Dividend Yield is a higher than the industry average which is at 5.56.
CNQ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.53% |
5.2 History
The dividend of CNQ is nicely growing with an annual growth rate of 23.37%!
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 55.82% of its income as dividend. 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.
DP55.82%
EPS Next 2Y-5.37%
EPS Next 3Y15.52%
TSX:CNQ (10/17/2025, 7:00:00 PM)
42.19
-0.3 (-0.71%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.7%
Inst Owner ChangeN/A
Ins Owners2.18%
Ins Owner ChangeN/A
Market Cap88.05B
Analysts75.83
Price Target53.61 (27.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.53% |
Yearly Dividend2.09
Dividend Growth(5Y)23.37%
DP55.82%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.15%
Min EPS beat(2)9.38%
Max EPS beat(2)12.93%
EPS beat(4)3
Avg EPS beat(4)7%
Min EPS beat(4)-0.9%
Max EPS beat(4)12.93%
EPS beat(8)6
Avg EPS beat(8)5.45%
EPS beat(12)8
Avg EPS beat(12)3.79%
EPS beat(16)12
Avg EPS beat(16)4.8%
Revenue beat(2)1
Avg Revenue beat(2)0.78%
Min Revenue beat(2)-2.6%
Max Revenue beat(2)4.16%
Revenue beat(4)2
Avg Revenue beat(4)-0.02%
Min Revenue beat(4)-4.04%
Max Revenue beat(4)4.16%
Revenue beat(8)5
Avg Revenue beat(8)0.82%
Revenue beat(12)9
Avg Revenue beat(12)2.08%
Revenue beat(16)13
Avg Revenue beat(16)5.56%
PT rev (1m)0%
PT rev (3m)3.06%
EPS NQ rev (1m)-1.4%
EPS NQ rev (3m)-0.38%
EPS NY rev (1m)-1.18%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)-3.81%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-8.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 13.6 | ||
| P/S | 2.32 | ||
| P/FCF | N/A | ||
| P/OCF | 6.37 | ||
| P/B | 2.13 | ||
| P/tB | 2.13 | ||
| EV/EBITDA | 5.95 |
EPS(TTM)3.77
EY8.94%
EPS(NY)3.1
Fwd EY7.35%
FCF(TTM)-0.57
FCFYN/A
OCF(TTM)6.63
OCFY15.71%
SpS18.21
BVpS19.79
TBVpS19.79
PEG (NY)N/A
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.76% | ||
| ROE | 20.15% | ||
| ROCE | 14.02% | ||
| ROIC | 10.99% | ||
| ROICexc | 11% | ||
| ROICexgc | 11% | ||
| OM | 28.32% | ||
| PM (TTM) | 21.9% | ||
| GM | 49.63% | ||
| 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 Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.94 | ||
| Cap/Depr | 210.68% | ||
| Cap/Sales | 39.55% | ||
| Interest Coverage | 13.92 | ||
| Cash Conversion | 77.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 2.54 |
F-Score4
WACC7.18%
ROIC/WACC1.53
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)-6.45%
EPS 3Y4.92%
EPS 5Y16.79%
EPS Q2Q%-19.32%
EPS Next Y-0.49%
EPS Next 2Y-5.37%
EPS Next 3Y15.52%
EPS Next 5Y17.58%
Revenue 1Y (TTM)3.42%
Revenue growth 3Y5.86%
Revenue growth 5Y9.29%
Sales Q2Q%-3.9%
Revenue Next Year7.16%
Revenue Next 2Y0.74%
Revenue Next 3Y3%
Revenue Next 5Y1.17%
EBIT growth 1Y1%
EBIT growth 3Y0.75%
EBIT growth 5Y11.71%
EBIT Next Year114.69%
EBIT Next 3Y28.54%
EBIT Next 5Y18.21%
FCF growth 1Y-112.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.79%
OCF growth 3Y-2.58%
OCF growth 5Y8.68%