Canadian Natural Resources Limited
Canadian Natural Resources Limited Fundamental Analysis
Canadian Natural Resources Limited (CNQ) shows moderate financial fundamentals with a PE ratio of 17.95, profit margin of 15.49%, and ROE of 16.47%. The company generates $43.3B in annual revenue with weak year-over-year growth of 1.65%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CNQ's fundamental strength across five key dimensions:
Efficiency Score
WeakCNQ struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCNQ trades at attractive valuation levels.
Growth Score
WeakCNQ faces weak or negative growth trends.
Financial Health Score
ModerateCNQ shows balanced financial health with some risks.
Profitability Score
ExcellentCNQ achieves industry-leading margins.
Key Financial Metrics
Is CNQ Expensive or Cheap?
P/E Ratio
CNQ trades at 17.95 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CNQ's PEG of -0.66 indicates potential undervaluation.
Price to Book
The market values Canadian Natural Resources Limited at 2.95 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.85 times EBITDA. This is generally considered low.
How Well Does CNQ Make Money?
Net Profit Margin
For every $100 in sales, Canadian Natural Resources Limited keeps $15.49 as profit after all expenses.
Operating Margin
Core operations generate 28.69 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.47 in profit for every $100 of shareholder equity.
ROA
Canadian Natural Resources Limited generates $7.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Canadian Natural Resources Limited generates strong operating cash flow of $14.87B, reflecting robust business health.
Free Cash Flow
Canadian Natural Resources Limited generates strong free cash flow of $8.19B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.93 in free cash annually.
FCF Yield
CNQ converts 6.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.66
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.43
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How CNQ Stacks Against Its Sector Peers
| Metric | CNQ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.95 | 20.19 | Better (Cheaper) |
| ROE | 16.47% | 1019.00% | Weak |
| Net Margin | 15.49% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.43 | -0.65 (disorted) | Distorted |
| Current Ratio | 0.86 | 4.60 | Weak Liquidity |
| ROA | 7.78% | -11655350.00% (disorted) | Weak |
CNQ outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Canadian Natural Resources Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
90.66%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
26.32%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
69.88%
Industry Style: Cyclical, Value, Commodity
High Growth