Canadian Natural Resources shares fell by -2.9% during the day's afternoon session, and are now trading at a price of $32.27. 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.
The Market Is Undervaluing Canadian Natural Resources:
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 13.62 and an average price to book (P/B) ratio of 1.86. In contrast, Canadian Natural Resources has a trailing 12 month P/E ratio of 12.9 and a P/B ratio of 1.71.
Canadian Natural Resources has moved 3.3% over the last year compared to 31.8% for the S&P 500 — a difference of -28.5%. Canadian Natural Resources has a 52 week high of $41.29 and a 52 week low of $29.45.
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 |
