CANADIAN NATURAL RESOURCES (CNQ) Stock Fundamental Analysis
NYSE:CNQ - New York Stock Exchange, Inc. - CA1363851017 - Common Stock - Currency: USD
Overall CNQ gets a fundamental rating of 5 out of 10. We evaluated CNQ against 213 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of CNQ while its profitability can be described as average. CNQ has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years CNQ had a positive operating cash flow.
1.2 Ratios
CNQ's Return On Assets of 8.93% is amongst the best of the industry. CNQ outperforms 80.75% of its industry peers.
CNQ has a better Return On Equity (18.73%) than 80.75% of its industry peers.
CNQ has a better Return On Invested Capital (11.59%) than 83.10% of its industry peers.
CNQ had an Average Return On Invested Capital over the past 3 years of 13.06%. This is significantly below the industry average of 23.55%.
| 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 70.89% of its industry peers.
CNQ's Profit Margin has declined in the last couple of years.
CNQ has a better Operating Margin (29.37%) than 69.01% of its industry peers.
In the last couple of years the Operating Margin of CNQ has grown nicely.
Looking at the Gross Margin, with a value of 50.07%, CNQ is in line with its industry, outperforming 58.22% 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 | 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.
CNQ has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.57 indicates that CNQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
CNQ has a better Altman-Z score (2.57) than 77.00% of its industry peers.
CNQ has a debt to FCF ratio of 285.36. This is a negative value and a sign of low solvency as CNQ would need 285.36 years to pay back of all of its debts.
CNQ has a Debt to FCF ratio of 285.36. This is in the lower half of the industry: CNQ underperforms 61.03% of 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.
CNQ has a Debt to Equity ratio (0.42) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 285.36 | ||
| Altman-Z | 2.57 |
ROIC/WACC1.49
WACC7.8%
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 in the lower half of the industry: CNQ underperforms 68.08% 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 has a worse Quick ratio (0.53) than 79.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.91% over the past year.
The Earnings Per Share has been growing by 16.79% on average over the past years. This is quite good.
CNQ shows a small growth in Revenue. In the last year, the Revenue has grown by 7.78%.
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
The Earnings Per Share is expected to grow by 17.16% on average over the next years. This is quite good.
The Revenue is expected to grow by 0.19% 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 5Y0.19%
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
A Price/Earnings ratio of 11.17 indicates a reasonable valuation of CNQ.
Based on the Price/Earnings ratio, CNQ is valued a bit cheaper than 67.61% of the companies in the same industry.
CNQ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.59.
CNQ is valuated correctly with a Price/Forward Earnings ratio of 12.52.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CNQ is on the same level as its industry peers.
CNQ is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.17 | ||
| Fwd PE | 12.52 |
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 65.73% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CNQ is valued a bit more expensive than 61.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1397.28 | ||
| EV/EBITDA | 5.98 |
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.
A more expensive valuation may be justified as CNQ's earnings are expected to grow with 13.10% in the coming years.
PEG (NY)190.94
PEG (5Y)0.67
EPS Next 2Y0.74%
EPS Next 3Y13.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.55%, CNQ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.74, 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.55% |
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
CNQ pays out 59.88% 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.
DP59.88%
EPS Next 2Y0.74%
EPS Next 3Y13.1%
32.17
+0.55 (+1.74%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners74.44%
Inst Owner Change6.1%
Ins Owners4.4%
Ins Owner ChangeN/A
Market Cap67.39B
Analysts75.2
Price Target38.24 (18.87%)
Short Float %2.45%
Short Ratio7.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.55% |
Yearly Dividend1.52
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)-0.03%
PT rev (3m)-2.04%
EPS NQ rev (1m)-11.35%
EPS NQ rev (3m)-5.43%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.84%
Revenue NQ rev (1m)1.54%
Revenue NQ rev (3m)-2.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)10.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.17 | ||
| Fwd PE | 12.52 | ||
| P/S | 2.4 | ||
| P/FCF | 1397.28 | ||
| P/OCF | 6.23 | ||
| P/B | 2.28 | ||
| P/tB | 2.28 | ||
| EV/EBITDA | 5.98 |
EPS(TTM)2.88
EY8.95%
EPS(NY)2.57
Fwd EY7.99%
FCF(TTM)0.02
FCFY0.07%
OCF(TTM)5.16
OCFY16.05%
SpS13.38
BVpS14.11
TBVpS14.11
PEG (NY)190.94
PEG (5Y)0.67
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 | 2.57 |
F-Score4
WACC7.8%
ROIC/WACC1.49
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 5Y0.19%
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%