Returns On Capital Are Showing Encouraging Signs At Canadian Natural Resources (TSE:CNQ)
Nov 12
Have your own idea? Try our Stock Screener
Canadian (TSX) Market Analysis & Valuation
UpdatedNov 25, 2024
DataAggregated Company Financials
Companies2348
- 7D2.2%
- 3M6.6%
- 1Y23.4%
- YTD19.0%
The market is up 2.2% in the last 7 days, led by the Materials and Energy sectors. As for the past 12 months, the market is up 23%. As for the next few years, earnings are expected to grow by 16% per annum.
Market Valuation and Performance
Has the Canadian Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 26 Nov 2024 | CA$4.0t | CA$2.1t | CA$166.9b | 14.5x | 23.8x | 1.9x |
| Thu, 24 Oct 2024 | CA$3.9t | CA$2.1t | CA$167.9b | 15.4x | 23.4x | 1.9x |
| Sat, 21 Sep 2024 | CA$3.8t | CA$2.1t | CA$167.5b | 15.2x | 22.7x | 1.8x |
| Mon, 19 Aug 2024 | CA$3.7t | CA$2.1t | CA$170.0b | 14.7x | 21.7x | 1.8x |
| Wed, 17 Jul 2024 | CA$3.7t | CA$2.0t | CA$167.6b | 14x | 21.8x | 1.8x |
| Fri, 14 Jun 2024 | CA$3.5t | CA$2.1t | CA$167.4b | 14x | 20.9x | 1.7x |
| Sun, 12 May 2024 | CA$3.6t | CA$2.1t | CA$168.5b | 14x | 21.5x | 1.8x |
| Tue, 09 Apr 2024 | CA$3.6t | CA$2.0t | CA$174.2b | 14x | 20.5x | 1.7x |
| Thu, 07 Mar 2024 | CA$3.5t | CA$2.1t | CA$173.1b | 14.1x | 19.9x | 1.7x |
| Sat, 03 Feb 2024 | CA$3.4t | CA$2.1t | CA$170.5b | 13x | 19.9x | 1.6x |
| Mon, 01 Jan 2024 | CA$3.4t | CA$2.1t | CA$172.8b | 13.3x | 19.5x | 1.6x |
| Wed, 29 Nov 2023 | CA$3.2t | CA$2.1t | CA$178.6b | 11.8x | 18x | 1.5x |
| Fri, 27 Oct 2023 | CA$3.1t | CA$2.1t | CA$184.4b | 11.2x | 16.7x | 1.5x |
| Sun, 24 Sep 2023 | CA$3.2t | CA$2.1t | CA$184.3b | 11.7x | 17.4x | 1.5x |
| Tue, 22 Aug 2023 | CA$3.2t | CA$2.1t | CA$185.8b | 11.4x | 17.3x | 1.5x |
| Thu, 20 Jul 2023 | CA$3.3t | CA$2.1t | CA$199.6b | 11.5x | 16.5x | 1.6x |
| Sat, 17 Jun 2023 | CA$3.2t | CA$2.1t | CA$200.3b | 11.3x | 16.1x | 1.5x |
| Mon, 15 May 2023 | CA$3.3t | CA$2.1t | CA$206.5b | 10.9x | 15.9x | 1.5x |
| Wed, 12 Apr 2023 | CA$3.4t | CA$2.1t | CA$217.7b | 10.6x | 15.4x | 1.6x |
| Fri, 10 Mar 2023 | CA$3.3t | CA$2.1t | CA$220.8b | 10.9x | 15x | 1.6x |
| Sun, 05 Feb 2023 | CA$3.4t | CA$2.1t | CA$246.4b | 11.4x | 13.8x | 1.6x |
| Tue, 03 Jan 2023 | CA$3.2t | CA$2.1t | CA$245.8b | 10.5x | 13x | 1.5x |
| Thu, 01 Dec 2022 | CA$3.4t | CA$2.1t | CA$240.1b | 10.7x | 14x | 1.6x |
| Sat, 29 Oct 2022 | CA$3.2t | CA$2.0t | CA$235.4b | 10.1x | 13.7x | 1.6x |
| Mon, 26 Sep 2022 | CA$3.1t | CA$2.1t | CA$240.4b | 9.5x | 13x | 1.5x |
| Wed, 24 Aug 2022 | CA$3.3t | CA$2.0t | CA$236.9b | 10.5x | 14.1x | 1.7x |
| Fri, 22 Jul 2022 | CA$3.2t | CA$2.0t | CA$230.9b | 10.4x | 13.8x | 1.6x |
| Sun, 19 Jun 2022 | CA$3.2t | CA$2.0t | CA$231.9b | 10.6x | 13.7x | 1.6x |
| Tue, 17 May 2022 | CA$3.4t | CA$1.9t | CA$227.1b | 11.4x | 14.8x | 1.7x |
| Thu, 14 Apr 2022 | CA$3.7t | CA$1.9t | CA$212.2b | 12.8x | 17.3x | 2x |
| Sat, 12 Mar 2022 | CA$3.6t | CA$1.9t | CA$213.5b | 12.9x | 16.9x | 1.9x |
| Mon, 07 Feb 2022 | CA$3.5t | CA$1.8t | CA$195.1b | 13.1x | 18.2x | 2x |
| Wed, 05 Jan 2022 | CA$3.5t | CA$1.8t | CA$189.1b | 12.9x | 18.5x | 2x |
| Fri, 03 Dec 2021 | CA$3.4t | CA$1.8t | CA$190.8b | 12x | 17.7x | 1.9x |
Price to Earnings Ratio
17.7x
Current Market PE
- Investors are optimistic on the Canadian market, and appear confident in strong long term growth rates.
- The market is trading at a PE ratio of 23.8x which is higher than its 3-year average PE of 17.4x.
Past Earnings Growth
- The earnings for Canadian listed companies have declined 4.4% per year over the last three years.
- Meanwhile revenues for these companies have grown 6.0% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Sector Trends
Which sectors have driven the changes within the Canadian Market?
| CA Market | 2.15% | |
| Materials | 5.71% | |
| Energy | 3.62% | |
| Tech | 3.08% | |
| Industrials | 1.66% | |
| Utilities | 1.53% | |
| Financials | 1.43% | |
| Consumer Discretionary | 0.40% | |
| Information Technology | 0% | |
| Financials | 0% | |
| Health Care | 0% | |
| Industrials | 0% | |
| Real Estate | -0.085% | |
| Consumer Staples | -0.98% | |
| Telecom | -1.23% | |
| Healthcare | -3.35% | |
Sector PE
- Investors favour the Materials sector the most for future growth, which is trading above its 3-year average PE ratio of 221x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 39.8%, which is higher than its past year's earnings growth of 3.9% per year.
Forecasted Growth
- Analysts are most optimistic on the Healthcare sector, expecting annual earnings growth of 58% over the next 5 years.
- This is better than its past earnings decline of 3.7% per year.
- In contrast, the Energy sector is expected to see its earnings grow by 5.2% per year 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$174.71 | 1.8% +CA$4.4b | 47.9% | PB2.2x | Financials | |
| BN Brookfield | CA$81.45 | 3.6% +CA$4.3b | 75.8% | PE119.1x | Financials | |
| CNQ Canadian Natural Resources | CA$48.71 | 3.3% +CA$3.3b | 11.9% | PE13.5x | Energy | |
| CP Canadian Pacific Kansas City | CA$107.21 | 3.4% +CA$3.2b | 13.0% | PE28.3x | Industrials | |
| CSU Constellation Software | CA$4.59k | 3.1% +CA$2.9b | 43.0% | PE118.5x | Tech |