Canadian Natural Resources (TSX:CNQ) - Share price, News & Analysis

CNQ fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	1/6
Past Performance	6/6
Financial Health	4/6
Dividends	5/6

CNQ Stock Overview

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

Rewards

Trading at 32.6% below our estimate of its fair value

Earnings grew by 322.1% over the past year

Pays a reliable dividend of 3.53%

Risk Analysis

Earnings are forecast to decline by an average of 17% per year for the next 3 years

Significant insider selling over the past 3 months

Canadian Natural Resources Competitors

Ovintiv

TSX:OVV

CA$18.6b

MEG Energy

TSX:MEG

CA$6.8b

Crescent Point Energy

TSX:CPG

CA$6.4b

Vermilion Energy

TSX:VET

CA$4.6b

Price History & Performance

Summary of all time highs, changes and price drops for Canadian Natural Resources
Historical stock prices
Current Share Price	CA$84.99
52 Week High	CA$88.18
52 Week Low	CA$37.82
Beta	2.12
1 Month Change	6.04%
3 Month Change	22.22%
1 Year Change	103.08%
3 Year Change	132.79%
5 Year Change	118.26%
Change since IPO	69,635.39%

Recent News & Updates

May 08

Here's Why I Think Canadian Natural Resources (TSE:CNQ) Might Deserve Your Attention Today

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

	CNQ	CA Oil and Gas	CA Market
7D	7.1%	5.2%	2.8%
1Y	103.1%	65.6%	5.7%

Return vs Industry: CNQ exceeded the Canadian Oil and Gas industry which returned 65.6% over the past year.

Return vs Market: CNQ exceeded the Canadian Market which returned 5.7% over the past year.

Price Volatility

Is CNQ's price volatile compared to industry and market?
CNQ volatility
CNQ Average Weekly Movement	5.1%
Oil and Gas Industry Average Movement	10.1%
Market Average Movement	9.9%
10% most volatile stocks in CA Market	17.0%
10% least volatile stocks in CA Market	4.3%

Stable Share Price: CNQ is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CNQ's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1973	9,735	Tim McKay	https://www.cnrl.com

Canadian Natural Resources Limited acquires, explores for, develops, produces, markets, and sells 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 and refining assets include two crude oil pipeline systems; and a 50% working interest in an 84-megawatt cogeneration plant at Primrose.

Canadian Natural Resources Fundamentals Summary

How do Canadian Natural Resources's earnings and revenue compare to its market cap?
CNQ fundamental statistics
Market Cap	CA$98.11b
Earnings (TTM)	CA$9.39b
Revenue (TTM)	CA$34.13b

10.5x

P/E Ratio

2.9x

P/S Ratio

Is CNQ overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CNQ income statement (TTM)
Revenue	CA$34.13b
Cost of Revenue	CA$14.96b
Gross Profit	CA$19.16b
Other Expenses	CA$9.78b
Earnings	CA$9.39b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	8.13
Gross Margin	56.16%
Net Profit Margin	27.51%
Debt/Equity Ratio	36.1%

How did CNQ perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

29%

Payout Ratio

Does CNQ pay a reliable dividends?

See CNQ dividend history and benchmarks

When do you need to buy CNQ by to receive an upcoming dividend?
Canadian Natural Resources dividend dates
Ex Dividend Date	Jun 16 2022
Dividend Pay Date	Jul 05 2022
Days until Ex dividend	18 days
Days until Dividend pay date	37 days

Does CNQ pay a reliable dividends?

See CNQ dividend history and benchmarks

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

32.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CNQ (CA$84.99) is trading below our estimate of fair value (CA$126.13)

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 Price-To-Earnings Ratio (10.5x) compared to the Canadian Oil and Gas industry average (9.5x).

PE vs Market: CNQ is good value based on its Price-To-Earnings Ratio (10.5x) compared to the Canadian market (11.8x).

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 Price-To-Book Ratio (2.5x) compared to the CA Oil and Gas industry average (2.1x).

Future Growth

How is Canadian Natural Resources forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-17.0%

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 (-17% per year).

Earnings vs Market: CNQ's earnings are forecast to decline over the next 3 years (-17% per year).

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

Revenue vs Market: CNQ's revenue is expected to decline over the next 3 years (-6.4% per year).

High Growth Revenue: CNQ's revenue is forecast to decline over the next 3 years (-6.4% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CNQ's Return on Equity is forecast to be high in 3 years time (21%)

Past Performance

How has Canadian Natural Resources performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

22.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CNQ has high quality earnings.

Growing Profit Margin: CNQ's current net profit margins (27.5%) are higher than last year (11.7%).

Past Earnings Growth Analysis

Earnings Trend: CNQ's earnings have grown significantly by 22.6% per year over the past 5 years.

Accelerating Growth: CNQ's earnings growth over the past year (322.1%) exceeds its 5-year average (22.6% per year).

Earnings vs Industry: CNQ earnings growth over the past year (322.1%) exceeded the Oil and Gas industry 178.1%.

Return on Equity

High ROE: CNQ's Return on Equity (24.4%) is considered high.

Financial Health

How is Canadian Natural Resources's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CNQ's short term assets (CA$7.2B) do not cover its short term liabilities (CA$9.7B).

Long Term Liabilities: CNQ's short term assets (CA$7.2B) do not cover its long term liabilities (CA$29.9B).

Debt to Equity History and Analysis

Debt Level: CNQ's net debt to equity ratio (34.8%) is considered satisfactory.

Reducing Debt: CNQ's debt to equity ratio has reduced from 62% to 36.1% over the past 5 years.

Debt Coverage: CNQ's debt is well covered by operating cash flow (106.4%).

Interest Coverage: CNQ's interest payments on its debt are well covered by EBIT (17.3x coverage).

Balance Sheet

Dividend

What is Canadian Natural Resources's current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.53%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: CNQ's dividend (3.53%) is higher than the bottom 25% of dividend payers in the Canadian market (1.79%).

High Dividend: CNQ's dividend (3.53%) is low compared to the top 25% of dividend payers in the Canadian market (4.86%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (28.5%), CNQ's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (35.9%), CNQ's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure

CEO

Tim McKay (59 yo)

4.17yrs

Tenure

CA$9,471,088

Compensation

Mr. Timothy Shawn McKay, also known as Tim, has been President and Director of Canadian Natural Resources Limited since March 01, 2018 and February 2018 respectively. Prior thereto, Mr. McKay joined the Co...

CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD7.43M) is about average for companies of similar size in the Canadian market ($USD7.43M).

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

Leadership Team

Experienced Management: CNQ's management team is considered experienced (4.6 years average tenure).

Board Members

Experienced Board: CNQ's board of directors are seasoned and experienced ( 13.6 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/28 00:00
End of Day Share Price	2022/05/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31