We Think Canadian Natural Resources (TSE:CNQ) Can Stay On Top Of Its Debt
Dec 04
Canadian (TSX) Market Analysis & Valuation
UpdatedDec 04, 2023
DataAggregated Company Financials
Companies2807
- 7D1.4%
- 3M-1.0%
- 1Y-3.0%
- YTD2.5%
The market has climbed 1.4% over the last week, with theFinancials and Consumer Discretionary sectors leading the way. In contrast, the market has seen a decline of 3.0% over the last 12 months. Earnings are forecast to grow by 14% annually.
Market Valuation and Performance
Has the Canadian Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 04 Dec 2023 | CA$3.3t | CA$2.1t | CA$173.0b | 12.4x | 19.3x | 1.6x |
| Wed, 01 Nov 2023 | CA$3.1t | CA$2.1t | CA$185.5b | 11.6x | 16.8x | 1.5x |
| Fri, 29 Sep 2023 | CA$3.2t | CA$2.1t | CA$185.5b | 11.5x | 17.4x | 1.5x |
| Sun, 27 Aug 2023 | CA$3.3t | CA$2.1t | CA$185.8b | 11.5x | 17.6x | 1.5x |
| Tue, 25 Jul 2023 | CA$3.4t | CA$2.1t | CA$200.9b | 11.8x | 16.8x | 1.6x |
| Thu, 22 Jun 2023 | CA$3.2t | CA$2.1t | CA$201.1b | 11.1x | 16.1x | 1.5x |
| Sat, 20 May 2023 | CA$3.3t | CA$2.2t | CA$207.2b | 11.1x | 16.1x | 1.5x |
| Mon, 17 Apr 2023 | CA$3.4t | CA$2.1t | CA$218.2b | 10.6x | 15.6x | 1.6x |
| Wed, 15 Mar 2023 | CA$3.2t | CA$2.1t | CA$221.6b | 10.6x | 14.6x | 1.5x |
| Fri, 10 Feb 2023 | CA$3.4t | CA$2.1t | CA$246.5b | 11.1x | 13.7x | 1.6x |
| Sun, 08 Jan 2023 | CA$3.3t | CA$2.1t | CA$246.2b | 10.6x | 13.3x | 1.6x |
| Tue, 06 Dec 2022 | CA$3.4t | CA$2.1t | CA$243.5b | 10.7x | 13.8x | 1.6x |
| Thu, 03 Nov 2022 | CA$3.2t | CA$2.0t | CA$235.5b | 9.9x | 13.6x | 1.6x |
| Sat, 01 Oct 2022 | CA$3.1t | CA$2.1t | CA$241.1b | 9.6x | 13x | 1.5x |
| Mon, 29 Aug 2022 | CA$3.3t | CA$2.0t | CA$235.9b | 10.6x | 14.1x | 1.7x |
| Wed, 27 Jul 2022 | CA$3.2t | CA$2.0t | CA$230.8b | 10.3x | 13.8x | 1.6x |
| Fri, 24 Jun 2022 | CA$3.1t | CA$2.0t | CA$231.6b | 10.4x | 13.5x | 1.6x |
| Sun, 22 May 2022 | CA$3.4t | CA$1.9t | CA$226.9b | 11.4x | 15x | 1.7x |
| Tue, 19 Apr 2022 | CA$3.7t | CA$1.9t | CA$212.1b | 12.7x | 17.3x | 2x |
| Thu, 17 Mar 2022 | CA$3.6t | CA$1.9t | CA$213.7b | 12.7x | 16.8x | 1.9x |
| Sat, 12 Feb 2022 | CA$3.6t | CA$1.8t | CA$197.0b | 13x | 18.3x | 2x |
| Mon, 10 Jan 2022 | CA$3.5t | CA$1.8t | CA$188.9b | 13x | 18.4x | 2x |
| Wed, 08 Dec 2021 | CA$3.4t | CA$1.8t | CA$189.6b | 12.1x | 17.9x | 1.9x |
| Fri, 05 Nov 2021 | CA$3.5t | CA$1.7t | CA$179.5b | 13.4x | 19.4x | 2x |
| Sun, 03 Oct 2021 | CA$3.3t | CA$1.7t | CA$169.9b | 12.6x | 19.4x | 2x |
| Tue, 31 Aug 2021 | CA$3.3t | CA$1.7t | CA$167.5b | 12.9x | 19.7x | 2x |
| Wed, 07 Jul 2021 | CA$3.2t | CA$1.7t | CA$161.3b | 13.3x | 20.1x | 2x |
| Sat, 10 Apr 2021 | CA$3.0t | CA$1.6t | CA$115.8b | 14.8x | 25.9x | 1.9x |
| Fri, 01 Jan 2021 | CA$2.7t | CA$1.6t | CA$57.4b | 14.9x | 47.4x | 1.7x |
Price to Earnings Ratio
51.2x
Current Market PE
- Investors are relatively neutral on the Canadian market at the moment, indicating that they expect earnings will grow in line with historical growth rates.
- The market is trading close to its 3-year average PE ratio of 19.8x.
Past Earnings Growth
- The earnings for Canadian listed companies have grown 50% per year over the last three years.
- Revenues for these companies have grown 10% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Sector Trends
Which sectors have driven the changes within the Canadian Market?
| CA Market | 1.40% | |
| Materials | 3.64% | |
| Telecom | 2.43% | |
| Financials | 1.90% | |
| Real Estate | 1.89% | |
| Industrials | 1.72% | |
| Healthcare | 1.34% | |
| Tech | 1.30% | |
| Utilities | 1.26% | |
| Energy | 0.15% | |
| Consumer Discretionary | -0.13% | |
| Consumer Staples | -2.38% | |
Sector PE
- Investors favour the Materials sector the most for future growth, which is trading above its 3-year average PE ratio of 27.8x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 24.0% which is higher than its past year's earnings decline of 20.8% per year.
Forecasted Growth
- Analysts are most optimistic on the Healthcare sector, expecting annual earnings growth of 61% over the next 5 years.
- This is better than its past earnings growth rate of 13% per year.
- In contrast, the Utilities industry is expected to see its earnings growth to stay flat over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | Sector | |
|---|---|---|---|---|---|---|
| RY Royal Bank of Canada | CA$122.94 | 4.1% +CA$7.4b | -8.0% | PB1.6x | Financials | |
| CP Canadian Pacific Kansas City | CA$100.99 | 6.5% +CA$5.7b | -7.4% | PE22.5x | Industrials | |
| CNR Canadian National Railway | CA$160.23 | 5.1% +CA$5.0b | -7.0% | PE21.1x | Industrials | |
| CNQ Canadian Natural Resources | CA$91.63 | 5.3% +CA$5.0b | 17.9% | PE13.9x | Energy | |
| BN Brookfield | CA$48.79 | 5.3% +CA$3.8b | -18.7% | PS0.6x | Financials |
Market Insights
This week, we’re zooming in on how companies globally fared during the third quarter and what their results mean for the future and valuations...