It hasn't been a great morning session for Canadian Natural Resources investors, who have watched their shares sink by -1.7% to a price of $31.45. Some of you might be wondering if it's time to buy the dip. If you are considering this, make sure to check the company's fundamentals first to determine if the shares are fairly valued at today's prices.
Canadian Natural Resources Is Currently Undervalued:
Canadian Natural Resources Limited engages in the acquisition, exploration, development, production, marketing, and sale of crude oil, natural gas, and natural gas liquids (NGLs) in Western Canada, the United Kingdom sector of the North Sea, and Offshore Africa. The company belongs to the Energy sector, which has an average price to earnings (P/E) ratio of 18.35 and an average price to book (P/B) ratio of 1.6. In contrast, Canadian Natural Resources has a trailing 12 month P/E ratio of 11.0 and a P/B ratio of 1.59.
Canadian Natural Resources has moved -6.4% over the last year compared to 16.2% for the S&P 500 — a difference of -22.6%. Canadian Natural Resources has a 52 week high of $37.91 and a 52 week low of $24.65.
Generally Positive Cash Flows but Not Enough Current Assets to Cover Current Liabilities:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $22,871 | $16,893 | $30,057 | $42,298 | $35,968 | $35,656 |
| Net Margins | 24% | -3% | 25% | 26% | 23% | 17% |
| Net Income (M) | $5,416 | -$435 | $7,664 | $10,937 | $8,233 | $6,106 |
| Net Interest Expense (M) | -$836 | -$756 | -$711 | -$549 | -$636 | -$592 |
| Depreciation & Amort. (M) | $5,546 | $6,046 | $5,724 | $7,353 | $6,413 | $6,681 |
| Earnings Per Share | $4.54 | -$0.37 | $6.46 | $4.76 | $3.74 | $2.85 |
| EPS Growth | n/a | -108.15% | 1845.95% | -26.32% | -21.43% | -23.8% |
| Free Cash Flow (M) | $8,829 | $4,714 | $14,478 | $19,391 | $12,353 | $13,386 |
| Total Debt (M) | $18,591 | $20,110 | $13,694 | $11,041 | $9,819 | $16,419 |
| Current Ratio | 0.68 | 0.86 | 0.8 | 0.82 | 0.96 | 0.77 |
