Executive Summary
Canadian Natural Resources Limited explores for, develops, produces, and markets crude oil, natural gas, and natural gas liquids (NGLs).
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -20.4% per year for the next 3 years
Snowflake Analysis
Established dividend payer and good value.
Similar Companies
Share Price & News
How has Canadian Natural Resources's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CNQ has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-11.5%
CNQ
-7.4%
CA Oil and Gas
-4.8%
CA Market
1 Year Return
-4.9%
CNQ
-7.6%
CA Oil and Gas
0.1%
CA Market
Return vs Industry: CNQ exceeded the Canadian Oil and Gas industry which returned -6.1% over the past year.
Return vs Market: CNQ underperformed the Canadian Market which returned 0.5% over the past year.
Shareholder returns
| CNQ | Industry | Market | |
|---|---|---|---|
| 7 Day | -11.5% | -7.4% | -4.8% |
| 30 Day | -7.3% | -6.0% | -3.2% |
| 90 Day | -5.0% | -2.4% | -1.0% |
| 1 Year | -0.8%-4.9% | -3.5%-7.6% | 3.3%0.1% |
| 3 Year | 3.0%-7.0% | -11.1%-20.5% | 12.9%2.7% |
| 5 Year | 15.1%-2.8% | -13.3%-27.1% | 29.2%10.3% |
Price Volatility Vs. Market
How volatile is Canadian Natural Resources's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall St
Is Canadian Natural Resources Limited (TSE:CNQ) A High Quality Stock To Own?2 weeks ago | Simply Wall St
Is Canadian Natural Resources Limited (TSE:CNQ) A Smart Choice For Dividend Investors?3 weeks ago | Simply Wall St
Should You Be Adding Canadian Natural Resources (TSE:CNQ) To Your Watchlist Today?Valuation
Is Canadian Natural Resources undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CNQ (CA$36.67) is trading below our estimate of fair value (CA$79.16)
Significantly Below Fair Value: CNQ is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CNQ is good value based on its PE Ratio (10.8x) compared to the Oil and Gas industry average (10.8x).
PE vs Market: CNQ is good value based on its PE Ratio (10.8x) compared to the Canadian market (15.4x).
Price to Earnings Growth Ratio
PEG Ratio: CNQ's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: CNQ is overvalued based on its PB Ratio (1.2x) compared to the CA Oil and Gas industry average (0.6x).
Next Steps
Future Growth
How is Canadian Natural Resources forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
-20.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CNQ's earnings are forecast to decline over the next 3 years (-20.4% per year).
Earnings vs Market: CNQ's earnings are forecast to decline over the next 3 years (-20.4% per year).
High Growth Earnings: CNQ's earnings are forecast to decline over the next 3 years.
Revenue vs Market: CNQ's revenue (2% per year) is forecast to grow slower than the Canadian market (4.7% per year).
High Growth Revenue: CNQ's revenue (2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CNQ's Return on Equity is forecast to be low in 3 years time (9.6%).
Next Steps
Past Performance
How has Canadian Natural Resources performed over the past 5 years?
21.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CNQ has high quality earnings.
Growing Profit Margin: CNQ's current net profit margins (19.6%) are higher than last year (16.7%).
Past Earnings Growth Analysis
Earnings Trend: CNQ's earnings have grown significantly by 21.8% per year over the past 5 years.
Accelerating Growth: CNQ's earnings growth over the past year (7.4%) is below its 5-year average (21.8% per year).
Earnings vs Industry: CNQ earnings growth over the past year (7.4%) exceeded the Oil and Gas industry 4.3%.
Return on Equity
High ROE: CNQ's Return on Equity (11.6%) is considered low.
Next Steps
Financial Health
How is Canadian Natural Resources's financial position?
Financial Position Analysis
Short Term Liabilities: CNQ's short term assets (CA$4.7B) do not cover its short term liabilities (CA$7.9B).
Long Term Liabilities: CNQ's short term assets (CA$4.7B) do not cover its long term liabilities (CA$35.9B).
Debt to Equity History and Analysis
Debt Level: CNQ's debt to equity ratio (64.6%) is considered high.
Reducing Debt: CNQ's debt to equity ratio has increased from 49% to 64.6% over the past 5 years.
Debt Coverage: CNQ's debt is well covered by operating cash flow (34.6%).
Interest Coverage: CNQ's interest payments on its debt are well covered by EBIT (5.6x coverage).
Balance Sheet
Inventory Level: CNQ has a high level of physical assets or inventory.
Debt Coverage by Assets: CNQ's debt is not covered by short term assets (assets are 0.2x debt).
Next Steps
Dividend
What is Canadian Natural Resources's current dividend yield, its reliability and sustainability?
4.19%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CNQ's dividend (4.09%) is higher than the bottom 25% of dividend payers in the Canadian market (2.02%).
High Dividend: CNQ's dividend (4.09%) is low compared to the top 25% of dividend payers in the Canadian market (5.7%).
Stability and Growth of Payments
Stable Dividend: CNQ's dividends per share have been stable in the past 10 years.
Growing Dividend: CNQ's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (43.2%), CNQ's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CNQ's dividends in 3 years are forecast to be covered by earnings (52.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.9yrs
Average management tenure
CEO
Tim McKay (57yo)
1.9yrs
Tenure
CA$7,218,208
Compensation
Mr. Timothy Shawn McKay, also known as Tim, is President and Director of Canadian Natural Resources Limited since March 01, 2018 and February 2018 respectively. Prior thereto, he joined the Corporation as ...
CEO Compensation Analysis
Compensation vs Market: Tim's total compensation ($USD5.43M) is about average for companies of similar size in the Canadian market ($USD6.83M).
Compensation vs Earnings: Tim's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 7.8yrs | CA$10.76m | 1.84% CA$802.9m | |
| President & Director | 1.9yrs | CA$7.22m | 0.099% CA$43.0m | |
| Executive Vice Chairman | 1.9yrs | CA$5.63m | 0.20% CA$86.1m | |
| Chief Operating Officer of Oil Sands | 2.8yrs | CA$2.81m | 0.013% CA$5.8m | |
| Executive Advisor | 0.9yrs | CA$2.40m | 0.016% CA$7.0m | |
| CFO & Senior VP of Finance | 0.9yrs | no data | 0.0023% CA$988.1k | |
| Principal Accounting Officer & VP of Finance | 0.9yrs | no data | 0.0014% CA$600.7k | |
| Vice-President of Technology & Innovation | 0yrs | no data | no data | |
| Vice-President of Information & Corporate Services | 13.6yrs | no data | no data | |
| VP of Legal | 10yrs | no data | 0.0015% CA$666.0k |
1.9yrs
Average Tenure
58yo
Average Age
Experienced Management: CNQ's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 7.8yrs | CA$10.76m | 1.84% CA$802.9m | |
| President & Director | 1.9yrs | CA$7.22m | 0.099% CA$43.0m | |
| Executive Vice Chairman | 1.9yrs | CA$5.63m | 0.20% CA$86.1m | |
| Independent Director | 13.5yrs | CA$280.38k | 0.0014% CA$626.8k | |
| Independent Director | 17.8yrs | CA$257.38k | 0.0074% CA$3.2m | |
| Independent Lead Director | 7.8yrs | CA$300.38k | 0.0074% CA$3.2m | |
| Independent Director | 9.3yrs | CA$261.88k | 0.0052% CA$2.3m | |
| Independent Director | 9.3yrs | CA$271.88k | 0.00076% CA$330.8k | |
| Independent Director | 16.3yrs | CA$276.38k | 0.0040% CA$1.7m | |
| Independent Director | 9.3yrs | CA$256.38k | 0.0027% CA$1.2m |
9.3yrs
Average Tenure
69yo
Average Age
Experienced Board: CNQ's board of directors are considered experienced (9.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CNQ insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Canadian Natural Resources Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Canadian Natural Resources Limited
- Ticker: CNQ
- Exchange: TSX
- Founded: 1973
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Market Cap: CA$43.529b
- Shares outstanding: 1.19b
- Website: https://www.cnrl.com
Number of Employees
Location
- Canadian Natural Resources Limited
- 2100, 855-2nd Street S.W.
- Calgary
- Alberta
- T2P 4J8
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CNQ | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | May 1976 |
| CNQ | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | May 1976 |
| CRC | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | May 1976 |
Biography
Canadian Natural Resources Limited explores for, develops, produces, and markets crude oil, natural gas, and natural gas liquids (NGLs). The company offers synthetic crude oil (SCO), light and medium crude oil, bitumen (thermal oil), primary heavy crude oil, and Pelican Lake heavy crude oil. Its midstream assets include two crude oil pipeline systems; and a 50% working interest in an 84-megawatt cogeneration plant at Primrose. As of December 31, 2017, the company’s gross proved crude oil, bitumen, SCO, and NGLs reserves totaled 8,784 million barrels; gross proved plus probable crude oil, bitumen, SCO, and NGLs reserves totaled 11,760 million barrels; proved natural gas reserves totaled 6,652 billion cubic feet; and gross proved plus probable natural gas reserves totaled 9,734 billion cubic feet. It operates primarily in Western Canada; the United Kingdom portion of the North Sea; and Offshore Africa. The company was formerly known as AEX Minerals Corporation and changed its name to Canadian Natural Resources Limited in December 1975. Canadian Natural Resources Limited was incorporated in 1973 and is headquartered in Calgary, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/26 23:39 |
| End of Day Share Price | 2020/02/26 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.