CANADIAN NATURAL RESOURCES (CNQ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CNQ - CA1363851017 - Common Stock
32.79 USD
-0.18 (-0.55%)
33.02 USD
+0.23 (+0.7%)
Taking everything into account, CNQ scores 5 out of 10 in our fundamental rating. CNQ was compared to 209 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 is not valued too expensively and it also shows a decent growth rate.
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.
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 has a better Return On Assets (7.78%) than 80.48% of its industry peers.
The Return On Equity of CNQ (16.45%) is better than 81.43% of its industry peers.
With an excellent Return On Invested Capital value of 10.43%, CNQ belongs to the best of the industry, outperforming 85.24% 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 21.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.78% | ||
| ROE | 16.45% | ||
| ROIC | 10.43% |
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 (17.23%) than 70.48% of its industry peers.
CNQ's Profit Margin has declined in the last couple of years.
CNQ has a better Operating Margin (26.62%) than 66.67% 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 48.85%, CNQ is in line with its industry, outperforming 58.57% 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 | 26.62% | ||
| PM (TTM) | 17.23% | ||
| GM | 48.85% |
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.
Compared to 1 year ago, CNQ has less shares outstanding
Compared to 5 years ago, CNQ has less shares outstanding
The debt/assets ratio for CNQ is higher compared to a year ago.
2.2 Solvency
CNQ has an Altman-Z score of 2.55. 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 (2.55) is better than 76.19% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that CNQ is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.44, CNQ is in line with its industry, outperforming 53.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.55 |
ROIC/WACC1.45
WACC7.18%
2.3 Liquidity
A Current Ratio of 0.86 indicates that CNQ may have some problems paying its short term obligations.
CNQ's Current ratio of 0.86 is on the low side compared to the rest of the industry. CNQ is outperformed by 62.38% of its industry peers.
A Quick Ratio of 0.53 indicates that CNQ may have some problems paying its short term obligations.
With a Quick ratio value of 0.53, CNQ is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
CNQ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.21%.
The Earnings Per Share has been growing by 16.79% on average over the past years. This is quite good.
Looking at the last year, CNQ shows a quite strong growth in Revenue. The Revenue has grown by 8.06% 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)-1.21%
EPS 3Y4.92%
EPS 5Y16.79%
EPS Q2Q%-11.34%
Revenue 1Y (TTM)8.06%
Revenue growth 3Y5.86%
Revenue growth 5Y9.29%
Sales Q2Q%7.01%
3.2 Future
Based on estimates for the next years, CNQ will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.35% on average per year.
Based on estimates for the next years, CNQ will show a small growth in Revenue. The Revenue will grow by 1.07% on average per year.
EPS Next Y-1.65%
EPS Next 2Y-4.46%
EPS Next 3Y4.48%
EPS Next 5Y16.35%
Revenue Next Year6.9%
Revenue Next 2Y1.78%
Revenue Next 3Y1.68%
Revenue Next 5Y1.07%
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.
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
A Price/Earnings ratio of 12.28 indicates a correct valuation of CNQ.
Compared to the rest of the industry, the Price/Earnings ratio of CNQ indicates a somewhat cheap valuation: CNQ is cheaper than 66.19% of the companies listed in the same industry.
CNQ is valuated cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.19 indicates a correct valuation of CNQ.
CNQ's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of CNQ to the average of the S&P500 Index (23.46), we can say CNQ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.28 | ||
| Fwd PE | 14.19 |
4.2 Price Multiples
CNQ's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CNQ is cheaper than 69.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.89 |
4.3 Compensation for Growth
The decent profitability rating of CNQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.73
EPS Next 2Y-4.46%
EPS Next 3Y4.48%
5. Dividend
5.1 Amount
CNQ has a Yearly Dividend Yield of 5.21%, which is a nice return.
Compared to an average industry Dividend Yield of 3.93, CNQ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, CNQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.21% |
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.
CNQ has decreased its dividend recently.
Dividend Growth(5Y)23.37%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
CNQ pays out 71.45% of its income as dividend. This is not a sustainable payout ratio.
CNQ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP71.45%
EPS Next 2Y-4.46%
EPS Next 3Y4.48%
32.79
-0.18 (-0.55%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.42%
Inst Owner Change-4.68%
Ins Owners2.19%
Ins Owner ChangeN/A
Market Cap68.31B
Revenue(TTM)38.62B
Net Income(TTM)6.66B
Analysts73.6
Price Target39.12 (19.3%)
Short Float %3.94%
Short Ratio11.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.21% |
Yearly Dividend1.52
Dividend Growth(5Y)23.37%
DP71.45%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.33%
Min EPS beat(2)-0.27%
Max EPS beat(2)12.93%
EPS beat(4)2
Avg EPS beat(4)5.29%
Min EPS beat(4)-0.9%
Max EPS beat(4)12.93%
EPS beat(8)5
Avg EPS beat(8)4.49%
EPS beat(12)7
Avg EPS beat(12)3.16%
EPS beat(16)11
Avg EPS beat(16)4.12%
Revenue beat(2)0
Avg Revenue beat(2)-2.62%
Min Revenue beat(2)-2.64%
Max Revenue beat(2)-2.6%
Revenue beat(4)2
Avg Revenue beat(4)0.33%
Min Revenue beat(4)-2.64%
Max Revenue beat(4)4.16%
Revenue beat(8)4
Avg Revenue beat(8)0.16%
Revenue beat(12)8
Avg Revenue beat(12)1.3%
Revenue beat(16)12
Avg Revenue beat(16)5.3%
PT rev (1m)1.03%
PT rev (3m)0.94%
EPS NQ rev (1m)-6.06%
EPS NQ rev (3m)-9.3%
EPS NY rev (1m)-4.5%
EPS NY rev (3m)-1.17%
Revenue NQ rev (1m)-4.69%
Revenue NQ rev (3m)-5.82%
Revenue NY rev (1m)0.86%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.28 | ||
| Fwd PE | 14.19 | ||
| P/S | 2.42 | ||
| P/FCF | N/A | ||
| P/OCF | 6.33 | ||
| P/B | 2.31 | ||
| P/tB | 2.31 | ||
| EV/EBITDA | 5.89 |
EPS(TTM)2.67
EY8.14%
EPS(NY)2.31
Fwd EY7.05%
FCF(TTM)-0.36
FCFYN/A
OCF(TTM)5.18
OCFY15.8%
SpS13.55
BVpS14.19
TBVpS14.19
PEG (NY)N/A
PEG (5Y)0.73
Graham Number29.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.78% | ||
| ROE | 16.45% | ||
| ROCE | 13.3% | ||
| ROIC | 10.43% | ||
| ROICexc | 10.44% | ||
| ROICexgc | 10.44% | ||
| OM | 26.62% | ||
| PM (TTM) | 17.23% | ||
| GM | 48.85% | ||
| 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-Score5
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.93 | ||
| Cap/Depr | 180.69% | ||
| Cap/Sales | 40.92% | ||
| Interest Coverage | 12.17 | ||
| Cash Conversion | 77.63% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 2.55 |
F-Score5
WACC7.18%
ROIC/WACC1.45
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)-1.21%
EPS 3Y4.92%
EPS 5Y16.79%
EPS Q2Q%-11.34%
EPS Next Y-1.65%
EPS Next 2Y-4.46%
EPS Next 3Y4.48%
EPS Next 5Y16.35%
Revenue 1Y (TTM)8.06%
Revenue growth 3Y5.86%
Revenue growth 5Y9.29%
Sales Q2Q%7.01%
Revenue Next Year6.9%
Revenue Next 2Y1.78%
Revenue Next 3Y1.68%
Revenue Next 5Y1.07%
EBIT growth 1Y3.24%
EBIT growth 3Y0.75%
EBIT growth 5Y11.71%
EBIT Next Year109.23%
EBIT Next 3Y29.54%
EBIT Next 5Y18.2%
FCF growth 1Y-114.97%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y22.25%
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 5 / 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 71.45%.