Today we're going to take a closer look at Large-Cap Energy company Canadian Natural Resources, whose shares are currently trading at $30.38. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!
Canadian Natural Resources Is Undervalued at Today's Prices:
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 12.3 and a P/B ratio of 1.61.
Canadian Natural Resources has moved -0.5% over the last year compared to 20.0% for the S&P 500 — a difference of -20.5%. Canadian Natural Resources has a 52 week high of $41.29 and a 52 week low of $28.65.
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 |
