CANADIAN NATURAL RESOURCES (CNQ) Stock Fundamental Analysis
USA - NYSE:CNQ - CA1363851017 - Common Stock
31.88 USD
+0.51 (+1.63%)
32 USD
+0.12 (+0.38%)
CNQ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 210 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.
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
With an excellent Return On Assets value of 9.76%, CNQ belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
CNQ has a Return On Equity of 20.15%. This is amongst the best in the industry. CNQ outperforms 86.67% 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 84.29% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CNQ is significantly below the industry average of 21.78%.
| 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 better Profit Margin (21.90%) than 76.67% of its industry peers.
CNQ's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 28.32%, CNQ is doing good in the industry, outperforming 70.00% of the companies in the same industry.
CNQ's Operating Margin has improved in the last couple of years.
CNQ has a Gross Margin of 49.63%. This is comparable to the rest of the industry: CNQ outperforms 58.57% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CNQ is creating value.
The number of shares outstanding for CNQ has been reduced compared to 1 year ago.
CNQ has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CNQ has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.59 indicates that CNQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
CNQ has a Altman-Z score of 2.59. This is in the better half of the industry: CNQ outperforms 76.19% 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 of 0.41. This is comparable to the rest of the industry: CNQ outperforms 53.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.59 |
ROIC/WACC1.54
WACC7.12%
2.3 Liquidity
A Current Ratio of 0.85 indicates that CNQ may have some problems paying its short term obligations.
The Current ratio of CNQ (0.85) is worse than 62.86% of its industry peers.
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.
The Quick ratio of CNQ (0.54) is worse than 81.90% 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.
Measured over the past years, CNQ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.79% on average per year.
CNQ shows a small growth in Revenue. In the last year, the Revenue has grown by 3.42%.
The Revenue has been growing by 9.29% on average over the past years. This is quite good.
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 17.58% 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 1.31% on average per year.
EPS Next Y2.99%
EPS Next 2Y-4.08%
EPS Next 3Y8.68%
EPS Next 5Y17.58%
Revenue Next Year5.99%
Revenue Next 2Y1.01%
Revenue Next 3Y2.64%
Revenue Next 5Y1.31%
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
CNQ is valuated reasonably with a Price/Earnings ratio of 11.90.
65.24% of the companies in the same industry are more expensive than CNQ, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.13, CNQ is valued rather cheaply.
CNQ is valuated correctly with a Price/Forward Earnings ratio of 14.08.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CNQ is on the same level as its industry peers.
CNQ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.9 | ||
| Fwd PE | 14.08 |
4.2 Price Multiples
CNQ's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CNQ is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.18 |
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.
PEG (NY)3.98
PEG (5Y)0.71
EPS Next 2Y-4.08%
EPS Next 3Y8.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.23%, CNQ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.83, CNQ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, CNQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
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
CNQ pays out 55.82% of its income as dividend. 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-4.08%
EPS Next 3Y8.68%
31.88
+0.51 (+1.63%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.7%
Inst Owner Change-0.28%
Ins Owners2.18%
Ins Owner ChangeN/A
Market Cap66.53B
Revenue(TTM)38.00B
Net Income(TTM)8.32B
Analysts75.2
Price Target38.75 (21.55%)
Short Float %0.56%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
Yearly Dividend1.48
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)-0.02%
PT rev (3m)2.31%
EPS NQ rev (1m)-1.88%
EPS NQ rev (3m)-1.61%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)-4.5%
Revenue NQ rev (3m)-1.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.9 | ||
| Fwd PE | 14.08 | ||
| P/S | 2.47 | ||
| P/FCF | N/A | ||
| P/OCF | 6.77 | ||
| P/B | 2.27 | ||
| P/tB | 2.27 | ||
| EV/EBITDA | 6.18 |
EPS(TTM)2.68
EY8.41%
EPS(NY)2.26
Fwd EY7.1%
FCF(TTM)-0.41
FCFYN/A
OCF(TTM)4.71
OCFY14.77%
SpS12.93
BVpS14.06
TBVpS14.06
PEG (NY)3.98
PEG (5Y)0.71
Graham Number29.11
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
ROICexgc growth 3Y-2.66%
ROICexgc 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 | 2.59 |
F-Score4
WACC7.12%
ROIC/WACC1.54
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 Y2.99%
EPS Next 2Y-4.08%
EPS Next 3Y8.68%
EPS Next 5Y17.58%
Revenue 1Y (TTM)3.42%
Revenue growth 3Y5.86%
Revenue growth 5Y9.29%
Sales Q2Q%-3.9%
Revenue Next Year5.99%
Revenue Next 2Y1.01%
Revenue Next 3Y2.64%
Revenue Next 5Y1.31%
EBIT growth 1Y1%
EBIT growth 3Y0.75%
EBIT growth 5Y11.71%
EBIT Next Year114.69%
EBIT Next 3Y28.54%
EBIT Next 5Y18.38%
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%
CANADIAN NATURAL RESOURCES / CNQ FAQ
Can you provide the ChartMill fundamental rating for CANADIAN NATURAL RESOURCES?
ChartMill assigns a fundamental rating of 4 / 10 to CNQ.
What is the valuation status for CNQ stock?
ChartMill assigns a valuation rating of 4 / 10 to CANADIAN NATURAL RESOURCES (CNQ). This can be considered as Fairly Valued.
What is the profitability of CNQ stock?
CANADIAN NATURAL RESOURCES (CNQ) has a profitability rating of 6 / 10.
Can you provide the financial health for CNQ stock?
The financial health rating of CANADIAN NATURAL RESOURCES (CNQ) is 3 / 10.
Can you provide the dividend sustainability for CNQ stock?
The dividend rating of CANADIAN NATURAL RESOURCES (CNQ) is 6 / 10 and the dividend payout ratio is 55.82%.