CANADIAN NATURAL RESOURCES (CNQ)
CA1363851017 - Common Stock
Overall CNQ gets a fundamental rating of 5 out of 10. We evaluated CNQ against 214 industry peers in the Oil, Gas & Consumable Fuels industry. CNQ has an average financial health and profitability rating. CNQ has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CNQ was profitable.
In the past year CNQ had a positive cash flow from operations.
CNQ had positive earnings in 4 of the past 5 years.
CNQ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CNQ's Return On Assets of 10.84% is fine compared to the rest of the industry. CNQ outperforms 67.14% of its industry peers.
Looking at the Return On Equity, with a value of 20.67%, CNQ is in the better half of the industry, outperforming 61.97% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.28%, CNQ is in the better half of the industry, outperforming 64.79% 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 45.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.84% | ||
| ROE | 20.67% | ||
| ROIC | 12.28% |
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
The Profit Margin of CNQ (22.89%) is better than 60.56% of its industry peers.
CNQ's Profit Margin has improved in the last couple of years.
The Operating Margin of CNQ (29.09%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CNQ has grown nicely.
CNQ has a Gross Margin (50.56%) which is in line with 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 | 29.09% | ||
| PM (TTM) | 22.89% | ||
| GM | 50.56% |
OM growth 3YN/A
OM growth 5Y4.76%
PM growth 3YN/A
PM growth 5Y13.19%
GM growth 3Y11.78%
GM growth 5Y0.49%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CNQ is still creating some value.
Compared to 1 year ago, CNQ has less shares outstanding
Compared to 5 years ago, CNQ has less shares outstanding
Compared to 1 year ago, CNQ has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.34 indicates that CNQ is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.34, CNQ is in the better half of the industry, outperforming 75.59% of the companies in the same industry.
The Debt to FCF ratio of CNQ is 1.66, which is an excellent value as it means it would take CNQ, only 1.66 years of fcf income to pay off all of its debts.
CNQ has a Debt to FCF ratio of 1.66. This is in the better half of the industry: CNQ outperforms 77.93% of its industry peers.
CNQ has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CNQ (0.28) is better than 62.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 3.34 |
ROIC/WACC1.61
WACC7.65%
2.3 Liquidity
CNQ has a Current Ratio of 0.96. 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 0.96, CNQ is doing worse than 63.85% of the companies in the same industry.
A Quick Ratio of 0.69 indicates that CNQ may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.69, CNQ is doing worse than 75.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The earnings per share for CNQ have decreased strongly by -30.53% in the last year.
The Earnings Per Share has been growing by 23.97% on average over the past years. This is a very strong growth
Looking at the last year, CNQ shows a very negative growth in Revenue. The Revenue has decreased by -14.97% in the last year.
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)-30.53%
EPS 3YN/A
EPS 5Y23.97%
EPS growth Q2Q19.39%
Revenue 1Y (TTM)-14.97%
Revenue growth 3Y28.65%
Revenue growth 5Y11.33%
Revenue growth Q2Q-1.4%
3.2 Future
The Earnings Per Share is expected to grow by 10.28% 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 2.59% on average per year.
EPS Next Y-1.06%
EPS Next 2Y10.33%
EPS Next 3Y7.33%
EPS Next 5Y10.28%
Revenue Next Year-0.05%
Revenue Next 2Y5.57%
Revenue Next 3Y2.59%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 13.59, which indicates a correct valuation of CNQ.
The rest of the industry has a similar Price/Earnings ratio as CNQ.
CNQ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.25.
CNQ is valuated correctly with a Price/Forward Earnings ratio of 13.72.
The rest of the industry has a similar Price/Forward Earnings ratio as CNQ.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.67, CNQ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 13.72 |
4.2 Price Multiples
CNQ's Enterprise Value to EBITDA ratio is in line with the industry average.
CNQ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.16 | ||
| EV/EBITDA | 7.32 |
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)0.57
EPS Next 2Y10.33%
EPS Next 3Y7.33%
5. Dividend
5.1 Amount
CNQ has a Yearly Dividend Yield of 3.97%.
Compared to an average industry Dividend Yield of 5.79, 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 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
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
CNQ pays out 47.26% 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.
DP47.26%
EPS Next 2Y10.33%
EPS Next 3Y7.33%
CANADIAN NATURAL RESOURCES
NYSE:CNQ (4/24/2024, 7:04:00 PM)
After market: 76.91 0 (0%)76.91
-0.16 (-0.21%)
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 Cap82.36B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(16)
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PT rev (1m)
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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)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 13.72 | ||
| 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)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.84% | ||
| ROE | 20.67% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.09% | ||
| PM (TTM) | 22.89% | ||
| GM | 50.56% | ||
| 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.69 | ||
| 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)
Growth
EPS 1Y (TTM)-30.53%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-1.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-14.97%
Revenue growth 3Y28.65%
Revenue growth 5Y
Revenue growth 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