What Every Investor Must Know About CNQ Stock

Canadian Natural Resources shares fell by -2.9% during the day's afternoon session, and are now trading at a price of $79.23. Is it time to buy the dip? To better answer that question, it's essential to check if the market is valuing the company's shares fairly in terms of its earnings and equity levels.

Canadian Natural Resources's Valuation Is in Line With Its Sector Averages:

Canadian Natural Resources Limited acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). The company belongs to the Energy sector, which has an average price to earnings (P/E) ratio of 8.53 and an average price to book (P/B) ratio of 1.78. In contrast, Canadian Natural Resources has a trailing 12 month P/E ratio of 14.5 and a P/B ratio of 2.13.

When we divide Canadian Natural Resources's P/E ratio by its expected EPS growth rate of the next five years, we obtain its PEG ratio of -27.61. Since it's negative, the company has negative growth expectations, and most investors will probably avoid the stock unless it has an exceptionally low P/E and P/B ratio.

Exceptional EPS Growth but Not Enough Current Assets to Cover Current Liabilities:

2018 2019 2020 2021 2022 2023
Revenue (M) $21,027 $22,871 $16,893 $30,057 $42,298 $35,968
Net Margins 12% 24% -3% 25% 26% 23%
Net Income (M) $2,591 $5,416 -$435 $7,664 $10,937 $8,233
Net Interest Expense (M) -$739 -$836 -$756 -$711 -$549 -$636
Depreciation & Amort. (M) $5,161 $5,546 $6,046 $5,724 $7,353 $6,413
Earnings Per Share $2.12 $4.54 -$0.37 $6.46 $9.52 $7.47
EPS Growth n/a 114.15% -108.15% 1845.95% 47.37% -21.53%
Free Cash Flow (M) $10,121 $8,829 $4,714 $14,478 $19,391 $12,353
Total Debt (M) $19,482 $18,591 $20,110 $13,694 $11,041 $9,819
Current Ratio 0.63 0.68 0.86 0.8 0.82 0.96
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.