TSX:CNQ

Stock Analysis Report

Canadian Natural Resources

Executive Summary

Canadian Natural Resources Limited explores for, develops, produces, and markets crude oil, natural gas, and natural gas liquids (NGLs).

Snowflake

Fundamentals

Established dividend payer and fair 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

0.4%

CNQ

-0.2%

CA Oil and Gas

0.2%

CA Market


1 Year Return

10.8%

CNQ

-0.7%

CA Oil and Gas

8.3%

CA Market

Return vs Industry: CNQ exceeded the Canadian Oil and Gas industry which returned -0.7% over the past year.

Return vs Market: CNQ underperformed the Canadian Market which returned 8.3% over the past year.


Shareholder returns

CNQIndustryMarket
7 Day0.4%-0.2%0.2%
30 Day10.0%4.3%3.0%
90 Day23.3%10.0%5.0%
1 Year15.5%10.8%3.8%-0.7%11.9%8.3%
3 Year-6.0%-14.8%-12.2%-21.2%16.8%6.3%
5 Year15.6%-2.0%-12.2%-25.7%29.5%10.5%

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

Valuation

Is Canadian Natural Resources undervalued compared to its fair value and its price relative to the market?

48.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CNQ (CA$37.21) is trading below our estimate of fair value (CA$71.73)

Significantly Below Fair Value: CNQ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CNQ is poor value based on its PE Ratio (11x) compared to the Oil and Gas industry average (11.1x).

PE vs Market: CNQ is good value based on its PE Ratio (11x) compared to the Canadian market (14.5x).


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 (1.3x) 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?

-25.3%

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 (-25.3% per year).

Earnings vs Market: CNQ's earnings are forecast to decline over the next 3 years (-25.3% per year).

High Growth Earnings: CNQ's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CNQ's revenue (0.9% per year) is forecast to grow slower than the Canadian market (4.8% per year).

High Growth Revenue: CNQ's revenue (0.9% 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 (7.9%).


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%) underperformed the Oil and Gas industry 16.5%.


Return on Equity

High ROE: CNQ's Return on Equity (11.6%) is considered low.


Return on Assets


Return on Capital Employed


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 (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?

4.03%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Canadian Natural Resources before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.0%marketbottom25%2.0%markettop25%5.7%industryaverage4.7%forecastin3Years4.2%

Current dividend yield vs market & industry

Notable Dividend: CNQ's dividend (4.03%) is higher than the bottom 25% of dividend payers in the Canadian market (1.96%).

High Dividend: CNQ's dividend (4.03%) is low compared to the top 25% of dividend payers in the Canadian market (5.73%).


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 well covered by earnings (38.7% payout ratio).


Next Steps

Management

What is the CEO of Canadian Natural Resources's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Tim McKay (57yo)

1.7yrs

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 ($USD5.43M) is about average for companies of similar size in the Canadian market ($USD6.84M).

Compensation vs Earnings: Tim's compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.7yrs

Average Tenure

58yo

Average Age

Experienced Management: CNQ's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

9.0yrs

Average Tenure

69yo

Average Age

Experienced Board: CNQ's board of directors are considered experienced (9 years average tenure).


Insider Trading

Insider Buying: CNQ insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellCA$57,93718 Nov 19
Paul Mendes
EntityIndividual
Role
Chief Legal Officer
VP of Legal
Shares1,545
Max PriceCA$37.50
SellCA$69,18618 Oct 19
Jay Froc
EntityIndividual
Shares2,070
Max PriceCA$33.51
SellCA$13,46811 Oct 19
Ronald Laing
EntityIndividual
Shares400
Max PriceCA$33.67
SellCA$177,60027 Sep 19
Bryan Bradley
EntityIndividual
Shares5,000
Max PriceCA$35.52
SellCA$127,76218 Sep 19
Paul Mendes
EntityIndividual
Role
Chief Legal Officer
VP of Legal
Shares3,500
Max PriceCA$36.50
SellCA$257,56518 Sep 19
Bryan Bradley
EntityIndividual
Shares7,000
Max PriceCA$36.80
SellCA$461,85117 Sep 19
Réal Cusson
EntityIndividual
Shares12,500
Max PriceCA$37.00
BuyCA$360,62517 Sep 19
Réal Cusson
EntityIndividual
Shares12,500
Max PriceCA$28.85
SellCA$113,01016 Sep 19
Jay Froc
EntityIndividual
Shares3,000
Max PriceCA$37.67
BuyCA$97,53016 Sep 19
Jay Froc
EntityIndividual
Shares3,000
Max PriceCA$32.51
SellCA$51,01110 Jul 19
Ronald Laing
EntityIndividual
Shares1,450
Max PriceCA$35.18
SellCA$88,17509 Jul 19
Jay Froc
EntityIndividual
Shares2,500
Max PriceCA$35.40
SellCA$35,46014 Jun 19
Allan Frankiw
EntityIndividual
Shares1,000
Max PriceCA$35.46
SellCA$2,199,00031 May 19
N. Murray Edwards Charitable Foundation, Endowment Arm
EntityCompany
Shares60,000
Max PriceCA$36.65
SellCA$9,96015 Apr 19
Jay Froc
EntityIndividual
Shares250
Max PriceCA$39.84
SellCA$31,55210 Apr 19
Betty Yee
EntityIndividual
Shares800
Max PriceCA$39.44
SellCA$118,44608 Apr 19
Paul Mendes
EntityIndividual
Role
Chief Legal Officer
VP of Legal
Shares3,117
Max PriceCA$38.00

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Steve Laut (61yo)

    Executive Vice Chairman

    • Tenure: 1.7yrs
    • Compensation: CA$5.63m
  • Tim McKay (57yo)

    President & Director

    • Tenure: 1.7yrs
    • Compensation: CA$7.22m
  • Norman Edwards (59yo)

    Executive Chairman

    • Tenure: 7.6yrs
    • Compensation: CA$10.76m
  • Corey Bieber (55yo)

    Executive Advisor

    • Tenure: 0.7yrs
    • Compensation: CA$2.40m
  • Steve Suche (59yo)

    Vice-President of Information & Corporate Services

    • Tenure: 13.3yrs
  • Scott Stauth (53yo)

    Chief Operating Officer of Oil Sands

    • Tenure: 2.5yrs
    • Compensation: CA$2.81m
  • Joy Romero (62yo)

    Vice-President of Technology & Innovation

    • Tenure: 0yrs
  • Paul Mendes (53yo)

    VP of Legal

    • Tenure: 9.8yrs
  • Mark Stainthorpe

    CFO & Senior VP of Finance

    • Tenure: 0.7yrs
  • Ron Kim

    Principal Accounting Officer & VP of Finance

    • Tenure: 0.7yrs

Board Members

  • Steve Laut (61yo)

    Executive Vice Chairman

    • Tenure: 1.7yrs
    • Compensation: CA$5.63m
  • Tim McKay (57yo)

    President & Director

    • Tenure: 1.7yrs
    • Compensation: CA$7.22m
  • Norman Edwards (59yo)

    Executive Chairman

    • Tenure: 7.6yrs
    • Compensation: CA$10.76m
  • Frank McKenna (71yo)

    Independent Director

    • Tenure: 13.3yrs
    • Compensation: CA$280.38k
  • David Tuer (69yo)

    Independent Director

    • Tenure: 17.5yrs
    • Compensation: CA$257.38k
  • Gordon Giffin (70yo)

    Independent Lead Director

    • Tenure: 7.5yrs
    • Compensation: CA$300.38k
  • Wilf Gobert (70yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: CA$261.88k
  • Tim Faithfull (74yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: CA$271.88k
  • Kay Best (65yo)

    Independent Director

    • Tenure: 16yrs
    • Compensation: CA$276.38k
  • Chris Fong (69yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: CA$256.38k

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$44.249b
  • Shares outstanding: 1.18b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CNQTSX (The Toronto Stock Exchange)YesCommon SharesCACADMay 1976
CNQNYSE (New York Stock Exchange)YesCommon SharesUSUSDMay 1976
CRCDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/22 23:33
End of Day Share Price2019/11/22 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.