CANADIAN NATURAL RESOURCES (CNQ)

CA1363851017 - Common Stock

35.76  +0.21 (+0.59%)

Fundamental Rating

6

Taking everything into account, CNQ scores 6 out of 10 in our fundamental rating. CNQ was compared to 212 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of CNQ get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on CNQ. With these ratings, CNQ could be worth investigating further for value investing!.



6

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.
Of the past 5 years CNQ 4 years were profitable.
In the past 5 years CNQ always reported a positive cash flow from operatings.

1.2 Ratios

CNQ has a better Return On Assets (9.77%) than 68.72% of its industry peers.
Looking at the Return On Equity, with a value of 18.78%, CNQ is in the better half of the industry, outperforming 63.03% of the companies in the same industry.
The Return On Invested Capital of CNQ (11.63%) is better than 65.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CNQ is significantly below the industry average of 38.31%.
Industry RankSector Rank
ROA 9.77%
ROE 18.78%
ROIC 11.63%
ROA(3y)11.73%
ROA(5y)8.31%
ROE(3y)23.35%
ROE(5y)16.84%
ROIC(3y)13.64%
ROIC(5y)N/A

1.3 Margins

With a decent Profit Margin value of 20.86%, CNQ is doing good in the industry, outperforming 63.03% of the companies in the same industry.
CNQ's Profit Margin has improved in the last couple of years.
CNQ has a Operating Margin (27.45%) which is comparable to the rest of the industry.
CNQ's Operating Margin has improved in the last couple of years.
The Gross Margin of CNQ (50.19%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CNQ has remained more or less at the same level.
Industry RankSector Rank
OM 27.45%
PM (TTM) 20.86%
GM 50.19%
OM growth 3YN/A
OM growth 5Y4.76%
PM growth 3YN/A
PM growth 5Y13.19%
GM growth 3Y11.78%
GM growth 5Y0.49%

6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CNQ is creating value.
CNQ has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CNQ has less shares outstanding
The debt/assets ratio for CNQ has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 2.26 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 2.26, CNQ is doing good in the industry, outperforming 62.09% of the companies in the same industry.
The Debt to FCF ratio of CNQ is 1.37, which is an excellent value as it means it would take CNQ, only 1.37 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.37, CNQ belongs to the top of the industry, outperforming 82.94% of the companies in the same industry.
CNQ has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.27, CNQ is in the better half of the industry, outperforming 64.45% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 1.37
Altman-Z 2.26
ROIC/WACC1.56
WACC7.46%

2.3 Liquidity

A Current Ratio of 0.88 indicates that CNQ may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.88, CNQ is doing worse than 72.04% of the companies in the same industry.
CNQ has a Quick Ratio of 0.88. 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 Quick ratio, with a value of 0.61, CNQ is doing worse than 78.67% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.88
Quick Ratio 0.61

4

3. Growth

3.1 Past

CNQ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.60%.
Measured over the past years, CNQ shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.97% on average per year.
The Revenue for CNQ has decreased by -11.60% in the past year. This is quite bad
CNQ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.33% yearly.
EPS 1Y (TTM)-25.6%
EPS 3YN/A
EPS 5Y23.97%
EPS Q2Q%-18.93%
Revenue 1Y (TTM)-11.6%
Revenue growth 3Y28.65%
Revenue growth 5Y11.33%
Sales Q2Q%-4.47%

3.2 Future

The Earnings Per Share is expected to grow by 6.69% on average over the next years.
Based on estimates for the next years, CNQ will show a small growth in Revenue. The Revenue will grow by 4.96% on average per year.
EPS Next Y-4.94%
EPS Next 2Y8.73%
EPS Next 3Y8.46%
EPS Next 5Y6.69%
Revenue Next Year1.03%
Revenue Next 2Y4.67%
Revenue Next 3Y4.96%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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.

8

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 6.62 indicates a rather cheap valuation of CNQ.
Compared to the rest of the industry, the Price/Earnings ratio of CNQ indicates a rather cheap valuation: CNQ is cheaper than 80.09% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.24. CNQ is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 5.37, which indicates a rather cheap valuation of CNQ.
CNQ's Price/Forward Earnings ratio is rather cheap when compared to the industry. CNQ is cheaper than 89.10% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.93, CNQ is valued rather cheaply.
Industry RankSector Rank
PE 6.62
Fwd PE 5.37

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 79.62% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CNQ is valued cheaper than 86.26% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.74
EV/EBITDA 3.86

4.3 Compensation for Growth

CNQ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2Y8.73%
EPS Next 3Y8.46%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.27%, CNQ is a good candidate for dividend investing.
In the last 3 months the price of CNQ has falen by -51.03%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
CNQ's Dividend Yield is a higher than the industry average which is at 6.06.
Compared to an average S&P500 Dividend Yield of 2.37, CNQ pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.27%

5.2 History

On average, the dividend of CNQ grows each year by 22.67%, which is quite nice.
CNQ has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)22.67%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

54.29% 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.
DP54.29%
EPS Next 2Y8.73%
EPS Next 3Y8.46%

CANADIAN NATURAL RESOURCES

NYSE:CNQ (6/12/2024, 9:40:09 AM)

35.76

+0.21 (+0.59%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap38.20B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.27%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 6.62
Fwd PE 5.37
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.28
Profitability
Industry RankSector Rank
ROA 9.77%
ROE 18.78%
ROCE
ROIC
ROICexc
ROICexgc
OM 27.45%
PM (TTM) 20.86%
GM 50.19%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.88
Quick Ratio 0.61
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-25.6%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-4.94%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.6%
Revenue growth 3Y28.65%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y