Canadian Natural Resources Ltd. (CNQ) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Topaz Energy Corp.

ARC Resources Ltd.

Cardinal Energy Ltd.

Canadian Natural Resources Ltd.

MEG Energy Corp.

Advantage Energy Ltd.

Parex Resources, Inc.

Obsidian Energy Ltd.

Tourmaline Oil Corp.

Vermilion Energy, Inc.

Crew Energy, Inc.

Why is Canadian Natural Resources Ltd. ?

High Management Efficiency with a high ROCE of 18.31%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 15.00

Healthy long term growth as Net Sales has grown by an annual rate of 15.25% and Operating profit at 42.39%

INTEREST COVERAGE RATIO(Q) Lowest at 1,461.01
PRE-TAX PROFIT(Q) At CAD 2,046 MM has Fallen at -38.52%
NET PROFIT(Q) At CAD 1,594.22 MM has Fallen at -41.55%

With ROE of 22.50%, it has a fair valuation with a 2.95 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 25.98%, its profits have risen by 32.2% ; the PEG ratio of the company is 0.4

High Institutional Holdings at 72.94%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Canadian Natural Resources Ltd. should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Canadian Natural Resources Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Canadian Natural Resources Ltd.

25.98%

0.63

29.83%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.25%

EBIT Growth (5y)

42.39%

EBIT to Interest (avg)

15.00

Debt to EBITDA (avg)

1.09

Net Debt to Equity (avg)

0.43

Sales to Capital Employed (avg)

0.67

Tax Ratio

22.27%

Dividend Payout Ratio

45.42%

Pledged Shares

Institutional Holding

72.94%

ROCE (avg)

18.31%

ROE (avg)

18.29%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.95

EV to EBIT

19.51

EV to EBITDA

8.54

EV to Capital Employed

2.43

EV to Sales

3.84

PEG Ratio

0.39

Dividend Yield

ROCE (Latest)

12.44%

ROE (Latest)

22.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

NET PROFIT(HY)

Higher at CAD 6,837.6 MM

ROCE(HY)

Highest at 22.82%

DIVIDEND PER SHARE(HY)

Highest at CAD 8.48

RAW MATERIAL COST(Y)

Fallen by -1.34% (YoY

-17What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,461.01

PRE-TAX PROFIT(Q)

At CAD 2,046 MM has Fallen at -38.52%

NET PROFIT(Q)

At CAD 1,594.22 MM has Fallen at -41.55%

INVENTORY TURNOVER RATIO(HY)

Lowest at 10.55 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.48 times

INTEREST(Q)

Highest at CAD 318 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 42.98 %

Here's what is working for Canadian Natural Resources Ltd.

Dividend per share

Highest at CAD 8.48 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Raw Material Cost

Fallen by -1.34% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Canadian Natural Resources Ltd.

Interest

At CAD 318 MM has Grown at 29.8%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest Coverage Ratio

Lowest at 1,461.01

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CAD 2,046 MM has Fallen at -38.52%

over average net sales of the previous four periods of CAD 3,328 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 1,594.22 MM has Fallen at -41.55%

over average net sales of the previous four periods of CAD 2,727.41 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Interest

Highest at CAD 318 MM

in the last five periods and Increased by 29.8% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Operating Profit Margin

Lowest at 42.98 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 10.55 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 8.48 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio