Canadian Natural Resources logged a -0.5% change during today's afternoon session, and is now trading at a price of $64.01 per share.
Canadian Natural Resources returned gains of 16.9% last year, with its stock price reaching a high of $68.74 and a low of $48.81. Over the same period, the stock underperformed the S&P 500 index by -6.0%. As of April 2023, the company's 50-day average price was $64.92. Canadian Natural Resources Limited acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). Based in Calgary, Canada, the large-cap Energy company has 10,035 full time employees. Canadian Natural Resources has offered a 5.5% dividend yield over the last 12 months.
Overview of the Company's Finances:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $21,027 | $22,871 | $16,893 | $30,057 | $42,298 | $42,298 |
| Revenue Growth | n/a | 8.77% | -26.14% | 77.93% | 40.73% | 0.0% |
| Net Margins | 13% | 24% | -3% | 25% | 26% | 26% |
| Net Income (MM) | $2,781 | $5,416 | -$435 | $7,664 | $11,147 | $11,147 |
| Net Interest Expense (MM) | -$739 | -$836 | -$756 | -$711 | -$549 | -$549 |
| Depreciation & Amort. (MM) | $5,161 | $5,546 | $6,046 | $5,724 | $7,353 | $7,353 |
| Free Cash Flow (MM) | $10,121 | $8,829 | $4,714 | $14,478 | $19,391 | $19,391 |
| Current Ratio | 0.63 | 0.68 | 0.86 | 0.8 | 0.82 | 0.82 |
| Total Debt (MM) | $38,789 | $42,202 | $42,098 | $38,845 | $36,623 | $36,623 |
Canadian Natural Resources has decent net margins with a positive growth rate, positive expected EPS Growth, and an average amount of debt. We also note that the company benefits from growing revenues and no capital expenditures and irregular cash flows. Furthermore, Canadian Natural Resources's financial statements do not display any obvious red flags.
Canadian Natural Resources's Valuation Is in Line With Its Sector Averages:
Canadian Natural Resources has a trailing twelve month P/E ratio of 13.4, compared to an average of 8.53 for the Energy sector. Based on its EPS guidance of $6.5, the company has a forward P/E ratio of 10.0. In contrast, the market is likely undervaluing Canadian Natural Resources in terms of its equity because its P/B ratio is 1.76 while the sector average is 1.78.
There's an Analyst Consensus of Some Upside Potential for Canadian Natural Resources:
The 10 analysts following Canadian Natural Resources have set target prices ranging from $64.18 to $78.36 per share, for an average of $73.96 with a buy rating. As of April 2023, the company is trading -12.2% away from its average target price, indicating that there is an analyst consensus of some upside potential.
The largest shareholder is Capital World Investors, whose 14% stake in the company is worth $9,513,968,882.
