CANADIAN NATURAL RESOURCES (CNQ)
CA1363851017 - Common Stock
CNQ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 217 industry peers in the Oil, Gas & Consumable Fuels industry. CNQ has an average financial health and profitability rating. CNQ has a valuation in line with the averages, but it does not seem to be growing. Finally CNQ also has an excellent dividend rating. These ratings would make CNQ suitable for dividend investing!
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.
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
Looking at the Return On Assets, with a value of 10.11%, CNQ is in line with its industry, outperforming 51.61% of the companies in the same industry.
CNQ has a Return On Equity of 19.66%. This is comparable to the rest of the industry: CNQ outperforms 48.39% of its industry peers.
The Return On Invested Capital of CNQ (11.54%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.11% | ||
| ROE | 19.66% | ||
| ROIC | 11.54% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CNQ has a Profit Margin (20.72%) which is comparable to the rest of the industry.
CNQ's Profit Margin has improved in the last couple of years.
CNQ has a Operating Margin (26.68%) which is comparable to the rest of the industry.
CNQ's Operating Margin has improved in the last couple of years.
CNQ's Gross Margin of 50.20% is in line compared to the rest of the industry. CNQ outperforms 50.23% of its industry peers.
CNQ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.68% | ||
| PM | 20.72% | ||
| GM | 50.2% |
OM growth 3Y12.59%
OM growth 5Y20.98%
PM growth 3Y2.97%
PM growth 5Y13.34%
GM growth 3Y2.39%
GM growth 5Y3.53%
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
The number of shares outstanding for CNQ has been reduced compared to 5 years ago.
Compared to 1 year ago, CNQ has an improved debt to assets ratio.
2.2 Solvency
CNQ has an Altman-Z score of 2.99. This indicates that CNQ is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.99, CNQ is in the better half of the industry, outperforming 69.59% of the companies in the same industry.
CNQ has a debt to FCF ratio of 1.44. This is a very positive value and a sign of high solvency as it would only need 1.44 years to pay back of all of its debts.
The Debt to FCF ratio of CNQ (1.44) is better than 75.58% of its industry peers.
CNQ has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CNQ (0.29) is better than 63.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.44 | ||
| Altman-Z | 2.99 |
ROIC/WACC1.5
WACC7.77%
2.3 Liquidity
A Current Ratio of 0.70 indicates that CNQ may have some problems paying its short term obligations.
The Current ratio of CNQ (0.70) is worse than 78.34% of its industry peers.
CNQ has a Quick Ratio of 0.70. 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 0.47, CNQ is not doing good in the industry: 84.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The earnings per share for CNQ have decreased strongly by -21.98% in the last year.
Measured over the past years, CNQ shows a very strong growth in Earnings Per Share. The EPS has been growing by 56.50% on average per year.
CNQ shows a decrease in Revenue. In the last year, the revenue decreased by -6.17%.
CNQ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.52% yearly.
EPS 1Y-21.98%
EPS 3Y51.85%
EPS 5Y56.5%
EPS growth Q2Q-65.03%
Revenue growth 1Y-6.17%
Revenue growth 3Y22.75%
Revenue growth 5Y19.52%
Revenue growth Q2Q-31.24%
3.2 Future
The Earnings Per Share is expected to decrease by -2.16% on average over the next years.
The Revenue is expected to decrease by -4.88% on average over the next years.
EPS Next Y-36.96%
EPS Next 2Y-12.73%
EPS Next 3Y-2.16%
EPS Next 5YN/A
Revenue Next Year-14.7%
Revenue Next 2Y-9.53%
Revenue Next 3Y-4.88%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.05, which indicates a very decent valuation of CNQ.
CNQ's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.76. CNQ is valued rather cheaply when compared to this.
CNQ is valuated reasonably with a Price/Forward Earnings ratio of 10.25.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CNQ is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 18.85. CNQ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.05 | ||
| Fwd PE | 10.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNQ is on the same level as its industry peers.
CNQ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.02 | ||
| EV/EBITDA | 6.39 |
4.3 Compensation for Growth
CNQ's earnings are expected to decrease with -2.16% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.2
EPS Next 2Y-12.73%
EPS Next 3Y-2.16%
5. Dividend
5.1 Amount
CNQ has a Yearly Dividend Yield of 4.03%, which is a nice return.
CNQ's Dividend Yield is a higher than the industry average which is at 6.69.
CNQ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.03% |
5.2 History
The dividend of CNQ is nicely growing with an annual growth rate of 32.24%!
CNQ has paid a dividend for at least 10 years, which is a reliable track record.
CNQ has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)32.24%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
69.68% of the earnings are spent on dividend by CNQ. This is not a sustainable payout ratio.
The Dividend Rate of CNQ has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP69.68%
EPS Next 2Y-12.73%
EPS Next 3Y-2.16%
CANADIAN NATURAL RESOURCES
NYSE:CNQ (9/29/2023, 7:24:02 PM)
After market: 64.67 0 (0%)64.67
-1.46 (-2.21%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)08-03 2023-08-03/bmo
Earnings (Next)11-01 2023-11-01/bmo
Inst Owners74.33%
Inst Owner Change1.06%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap70.53B
Analysts76.92
Price Target68.9 (6.54%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.03% |
Dividend Growth(5Y)32.24%
DP69.68%
Div Incr Years7
Div Non Decr Years7
Ex-Date09-14 2023-09-14 (0.9)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.4%
Min EPS beat(2)-1.85%
Max EPS beat(2)8.65%
EPS beat(4)2
Avg EPS beat(4)0.46%
Min EPS beat(4)-12.24%
Max EPS beat(4)8.65%
Revenue beat(2)2
Avg Revenue beat(2)105502%
Min Revenue beat(2)101210%
Max Revenue beat(2)109794%
Revenue beat(4)4
Avg Revenue beat(4)104488%
Min Revenue beat(4)100367%
Max Revenue beat(4)109794%
PT rev (1m)-1.28%
PT rev (3m)0.29%
EPS NQ rev (1m)2.09%
EPS NQ rev (3m)7.15%
EPS NY rev (1m)5.7%
EPS NY rev (3m)-10.06%
Revenue NQ rev (1m)-99.9%
Revenue NQ rev (3m)-99.9%
Revenue NY rev (1m)1.92%
Revenue NY rev (3m)-1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.05 | ||
| Fwd PE | 10.25 | ||
| P/S | 2.59 | ||
| P/FCF | 10.02 | ||
| P/OCF | 6.48 | ||
| P/B | 2.46 | ||
| P/tB | 2.46 | ||
| EV/EBITDA | 6.39 |
EPS(TTM)5.85
EY9.05%
EPS(NY)6.31
Fwd EY9.76%
FCF(TTM)6.45
FCFY9.98%
OCF(TTM)9.99
OCFY15.44%
SpS24.94
BVpS26.29
TBVpS26.29
PEG (NY)N/A
PEG (5Y)0.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.11% | ||
| ROE | 19.66% | ||
| ROCE | 14.69% | ||
| ROIC | 11.54% | ||
| ROICexc | 11.66% | ||
| ROICexgc | 11.66% | ||
| OM | 26.68% | ||
| PM | 20.72% | ||
| GM | 50.2% | ||
| FCFM | 25.88% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y41.45%
ROICexcg growth 5Y44.81%
ROICexc growth 3Y41.45%
ROICexc growth 5Y44.81%
OM growth 3Y12.59%
OM growth 5Y20.98%
PM growth 3Y2.97%
PM growth 5Y13.34%
GM growth 3Y2.39%
GM growth 5Y3.53%
F-Score5
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.44 | ||
| Debt/EBITDA | 0.65 | ||
| Cap/Depr | 70.21% | ||
| Cap/Sales | 14.17% | ||
| Profit Quality | 124.91% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 2.99 |
F-Score5
WACC7.77%
ROIC/WACC1.5
Cap/Depr(3y)63.56%
Cap/Depr(5y)68.36%
Cap/Sales(3y)14.08%
Cap/Sales(5y)15.83%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
Growth
EPS 1Y-21.98%
EPS 3Y51.85%
EPS 5Y56.5%
EPS growth Q2Q-65.03%
EPS Next Y-36.96%
EPS Next 2Y-12.73%
EPS Next 3Y-2.16%
EPS Next 5YN/A
Revenue growth 1Y-6.17%
Revenue growth 3Y22.75%
Revenue growth 5Y19.52%
Revenue growth Q2Q-31.24%
Revenue Next Year-14.7%
Revenue Next 2Y-9.53%
Revenue Next 3Y-4.88%
Revenue Next 5YN/A
EBIT growth 1Y-36.35%
EBIT growth 3Y38.2%
EBIT growth 5Y44.6%
EBIT Next Year1.92%
EBIT Next 3Y3.4%
EBIT Next 5YN/A
FCF growth 1Y75.57%
FCF growth 3Y39.77%
FCF growth 5Y40.93%
OCF growth 1Y66.54%
OCF growth 3Y29.99%
OCF growth 5Y21.71%