CANADIAN NATURAL RESOURCES (CNQ) Stock Fundamental Analysis
NYSE:CNQ - CA1363851017 - Common Stock
31.14 USD
+0.98 (+3.25%)
31.1 USD
-0.04 (-0.13%)
Taking everything into account, CNQ scores 4 out of 10 in our fundamental rating. CNQ was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. CNQ has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year CNQ had a positive cash flow from operations.
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
CNQ has a better Return On Assets (9.76%) than 85.10% of its industry peers.
Looking at the Return On Equity, with a value of 20.15%, CNQ belongs to the top of the industry, outperforming 86.54% of the companies in the same industry.
CNQ has a Return On Invested Capital of 10.99%. This is amongst the best in the industry. CNQ outperforms 83.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CNQ is significantly below the industry average of 23.40%.
| 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
Looking at the Profit Margin, with a value of 21.90%, CNQ is in the better half of the industry, outperforming 74.04% of the companies in the same industry.
In the last couple of years the Profit Margin of CNQ has declined.
The Operating Margin of CNQ (28.32%) is better than 67.79% of its industry peers.
CNQ's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 49.63%, CNQ perfoms like the industry average, outperforming 59.13% 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 | 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 just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CNQ has less shares outstanding
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 2.57. 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.
The Altman-Z score of CNQ (2.57) is better than 76.44% of its industry peers.
CNQ has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
CNQ has a Debt to Equity ratio (0.41) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.57 |
ROIC/WACC1.36
WACC8.1%
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.
Looking at the Current ratio, with a value of 0.85, CNQ is doing worse than 64.90% of the companies in the same industry.
CNQ has a Quick 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.
With a Quick ratio value of 0.54, CNQ is not doing good in the industry: 80.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
CNQ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.45%.
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 3.42% in the last 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
The Earnings Per Share is expected to grow by 17.68% on average over the next years. This is quite good.
Based on estimates for the next years, CNQ will show a small growth in Revenue. The Revenue will grow by 0.93% on average per year.
EPS Next Y0.7%
EPS Next 2Y-3.67%
EPS Next 3Y15.52%
EPS Next 5Y17.68%
Revenue Next Year7.36%
Revenue Next 2Y0.52%
Revenue Next 3Y2.52%
Revenue Next 5Y0.93%
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.
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
The Price/Earnings ratio is 11.49, which indicates a very decent valuation of CNQ.
Based on the Price/Earnings ratio, CNQ is valued a bit cheaper than the industry average as 69.71% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.24, CNQ is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 13.47, the valuation of CNQ can be described as correct.
CNQ's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.81. CNQ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.49 | ||
| Fwd PE | 13.47 |
4.2 Price Multiples
CNQ's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CNQ is cheaper than 63.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CNQ has a very decent profitability rating, which may justify a higher PE ratio.
CNQ's earnings are expected to grow with 15.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)16.44
PEG (5Y)0.68
EPS Next 2Y-3.67%
EPS Next 3Y15.52%
5. Dividend
5.1 Amount
CNQ has a Yearly Dividend Yield of 5.60%, which is a nice return.
Compared to an average industry Dividend Yield of 6.33, 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.6% |
5.2 History
On average, the dividend of CNQ grows each year by 23.37%, which is quite nice.
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
55.82% 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.
DP55.82%
EPS Next 2Y-3.67%
EPS Next 3Y15.52%
31.14
+0.98 (+3.25%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners77.66%
Inst Owner Change-3.98%
Ins Owners2.18%
Ins Owner ChangeN/A
Market Cap65.05B
Analysts75.83
Price Target38.71 (24.31%)
Short Float %0.93%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.6% |
Yearly Dividend1.5
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)8.41%
Min EPS beat(2)7.44%
Max EPS beat(2)9.38%
EPS beat(4)3
Avg EPS beat(4)5.63%
Min EPS beat(4)-0.9%
Max EPS beat(4)9.38%
EPS beat(8)6
Avg EPS beat(8)4.77%
EPS beat(12)8
Avg EPS beat(12)3.33%
EPS beat(16)12
Avg EPS beat(16)4.46%
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)2.2%
PT rev (3m)3.42%
EPS NQ rev (1m)21.64%
EPS NQ rev (3m)2.14%
EPS NY rev (1m)0.64%
EPS NY rev (3m)0.64%
Revenue NQ rev (1m)6.07%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)-8.61%
Revenue NY rev (3m)-8.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.49 | ||
| Fwd PE | 13.47 | ||
| P/S | 2.38 | ||
| P/FCF | N/A | ||
| P/OCF | 6.54 | ||
| P/B | 2.19 | ||
| P/tB | 2.19 | ||
| EV/EBITDA | 6.08 |
EPS(TTM)2.71
EY8.7%
EPS(NY)2.31
Fwd EY7.42%
FCF(TTM)-0.41
FCFYN/A
OCF(TTM)4.76
OCFY15.28%
SpS13.07
BVpS14.21
TBVpS14.21
PEG (NY)16.44
PEG (5Y)0.68
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 | 2.57 |
F-Score4
WACC8.1%
ROIC/WACC1.36
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 Y0.7%
EPS Next 2Y-3.67%
EPS Next 3Y15.52%
EPS Next 5Y17.68%
Revenue 1Y (TTM)3.42%
Revenue growth 3Y5.86%
Revenue growth 5Y9.29%
Sales Q2Q%-3.9%
Revenue Next Year7.36%
Revenue Next 2Y0.52%
Revenue Next 3Y2.52%
Revenue Next 5Y0.93%
EBIT growth 1Y1%
EBIT growth 3Y0.75%
EBIT growth 5Y11.71%
EBIT Next Year115.1%
EBIT Next 3Y25.61%
EBIT Next 5Y17.93%
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%