Canadian Natural (CNQ) AI Stock Analysis

• Market Cap: $88.21B
• Dividend Yield: 6.45%
• Average Volume (3M): 21.24M
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.97
• Revenue Growth: 3.42%
• EPS Growth: 11.18%
• Country: CA
• Employees: 10,640
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.71
• Shares Outstanding: 2,088,737,000
• 10 Day Avg. Volume: 15,310,109
• 30 Day Avg. Volume: 21,241,839
• PEG Ratio: -0.65
• Price to Book (P/B): 2.39
• Price to Sales (P/S): 2.27
• P/FCF Ratio: 11.79
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 2.47
• Enterprise Value/Gross Profit: 9.23
• Enterprise Value/Ebitda: 5.91
• 1Y Price Target: $53.49
• Price Target Upside: 27.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 73 Outperform
• Price Target: C$47.00 ▲(12.15% Upside)

Canadian Natural's strong valuation and positive earnings call insights are key strengths, supported by robust profitability. However, technical indicators suggest caution due to bearish momentum, and challenges in revenue and cash flow growth slightly temper the outlook.

Positive Factors

Operational Performance

Strong operational performance and production growth indicate effective management and strategic asset utilization, enhancing long-term business stability.

Accretive Acquisitions

Strategic acquisitions bolster production capacity and resource base, supporting sustained growth and competitive positioning in the energy sector.

Cost Efficiency

Improved cost efficiency enhances profitability and margin sustainability, providing a competitive edge in managing market fluctuations.

Negative Factors

Revenue Growth Challenges

Declining revenue growth can impact long-term financial health, necessitating strategic adjustments to sustain market position and shareholder value.

Free Cash Flow Decline

A decline in free cash flow growth may limit future investments and debt repayment capacity, affecting long-term financial flexibility.

Increased Oil Sands Costs

Rising operational costs in oil sands can pressure margins and profitability, requiring efficiency improvements to maintain competitive advantage.

Canadian Natural Business Overview & Revenue Model

Company Description

Canadian Natural Resources Limited (CNQ) is one of the largest independent oil and natural gas producers in Canada. The company is primarily engaged in the exploration, development, and production of crude oil, natural gas, and natural gas liquids. CNQ operates in various segments, including Oil Sands, Conventional Oil and Natural Gas, and Natural Gas Liquids, with a strong portfolio of assets located mainly in Alberta and Saskatchewan. The company is committed to responsible resource development and sustainability, aiming to deliver value to its shareholders while reducing environmental impact.

How the Company Makes Money

Canadian Natural generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids. The company benefits from a diversified production portfolio, allowing it to capitalize on various market conditions and demand for energy products. Key revenue streams include the sale of synthetic crude oil from its oil sands operations, conventional crude oil production, and natural gas production. Additionally, CNQ engages in hedging strategies to manage price volatility in commodity markets, which can enhance its earnings stability. The company's partnerships with other industry players for joint ventures and infrastructure development also contribute to its revenue generation. Overall, CNQ's focus on cost efficiency, operational excellence, and strategic asset management plays a critical role in its profitability.

Canadian Natural Financial Statement Overview

Summary

Canadian Natural exhibits strong profitability and a stable financial position, with efficient operations and a solid equity base. However, challenges in revenue growth and a decline in free cash flow growth rate slightly dampen the overall financial performance.

Income Statement

Canadian Natural's income statement shows strong profitability with a solid gross profit margin of 29.64% and a net profit margin of 18.88% for the TTM. However, there is a slight decline in revenue growth rate at -2.11%, indicating some challenges in maintaining top-line growth. The EBIT and EBITDA margins remain robust at 26.27% and 44.29%, respectively, reflecting efficient cost management and operational strength.

Balance Sheet

The balance sheet is stable with a moderate debt-to-equity ratio of 0.43, suggesting a balanced approach to leverage. The return on equity is healthy at 19.03%, indicating effective use of equity to generate profits. The equity ratio stands at 48.43%, showing a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth rate at -13.66%, which could impact future investments or debt repayments. However, the operating cash flow to net income ratio is strong at 1.71, indicating good cash generation relative to net income. The free cash flow to net income ratio is also solid at 0.63, reflecting adequate cash flow coverage of earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.85B	41.51B	40.84B	49.53B	32.85B	16.89B
Gross Profit	11.73B	10.90B	11.77B	16.26B	10.58B	-136.00M
EBITDA	18.31B	15.41B	17.27B	21.73B	16.38B	6.13B
Net Income	8.32B	6.11B	8.23B	10.94B	7.66B	-435.00M
Balance Sheet
Total Assets	85.27B	85.36B	75.95B	76.14B	76.67B	75.28B
Cash, Cash Equivalents and Short-Term Investments	102.00M	131.00M	1.40B	1.41B	1.05B	489.00M
Total Debt	17.08B	20.28B	12.35B	12.98B	16.28B	23.14B
Total Liabilities	43.97B	45.89B	36.12B	37.97B	39.72B	42.90B
Stockholders Equity	41.30B	39.47B	39.83B	38.17B	36.95B	32.38B
Cash Flow
Free Cash Flow	7.99B	8.00B	7.44B	14.29B	9.99B	2.16B
Operating Cash Flow	13.83B	13.39B	12.35B	19.39B	14.48B	4.71B
Investing Cash Flow	-14.94B	-14.10B	-4.86B	-4.99B	-3.70B	-2.82B
Financing Cash Flow	296.00M	-37.00M	-7.54B	-14.23B	-10.21B	-1.85B

Canadian Natural Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CNQ, the sentiment is Negative. The current price of 41.91 is below the 20-day moving average (MA) of 44.25, below the 50-day MA of 43.05, and below the 200-day MA of 42.02, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 36.64 is Neutral, neither overbought nor oversold. The STOCH value of 4.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CNQ.

Canadian Natural Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEG	79 Outperform	$7.43B	13.82	11.70%	1.41%	-22.92%	0.54%
WCP	79 Outperform	$12.69B	7.03	11.56%	7.14%	12.28%	16.78%
ARX	75 Outperform	$14.76B	9.97	18.43%	2.98%	8.28%	31.00%
CNQ	73 Outperform	$88.21B	10.68	20.18%	6.45%	3.42%	11.18%
TOU	73 Outperform	C$22.87B	14.67	9.76%	4.97%	3.86%	-5.32%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
PSK	65 Neutral	$5.86B	26.90	8.16%	4.08%	-1.59%	0.09%

Canadian Natural Corporate Events

Canadian Natural Resources Finalizes Registration Rights Agreement for Note Issuance

On December 6, 2024, Canadian Natural Resources Limited entered into a Registration Rights Agreement with several financial institutions, including BofA Securities, RBC Capital Markets, and others, to facilitate the issuance of 5.000% Notes due 2029 and 5.400% Notes due 2034. This agreement is part of a strategic move to provide registration rights for the securities, ensuring compliance with regulatory requirements and enhancing the company’s financial flexibility. The agreement underscores Canadian Natural’s commitment to maintaining robust financial operations and could potentially impact its market positioning by attracting more investors through structured financial offerings.

The most recent analyst rating on (TSE:CNQ) stock is a Buy with a C$62.00 price target. To see the full list of analyst forecasts on Canadian Natural stock, see the TSE:CNQ Stock Forecast page.

Canadian Natural Announces Medium-Term Notes Dealer Agreement

On August 28, 2025, Canadian Natural Resources Limited announced a dealer agreement to issue and sell unsecured medium-term notes across Canada and potentially in other jurisdictions, including the United States. This strategic move aims to enhance the company’s financial flexibility and strengthen its market position by leveraging a network of prominent investment dealers to facilitate the sale of these financial instruments.

The most recent analyst rating on (TSE:CNQ) stock is a Buy with a C$48.00 price target. To see the full list of analyst forecasts on Canadian Natural stock, see the TSE:CNQ Stock Forecast page.

Canadian Natural Resources Reports Strong Q2 2025 Results

Canadian Natural Resources Limited is a prominent player in the oil and gas sector, known for its extensive operations in oil sands mining, upgrading, and conventional oil and gas production, primarily based in Canada with some international exposure.

Canadian Natural Resources’ Earnings Call Highlights Growth and Returns

Canadian Natural Resources’ recent earnings call conveyed a generally positive outlook, marked by robust operational performance, increased production, and substantial shareholder returns. Despite facing some challenges, such as a delayed acquisition closing and decreased production in Pelican Lake, the overall sentiment remained favorable due to the company’s adeptness in maintaining cost efficiencies and executing accretive acquisitions.

Canadian Natural Resources Declares 25th Consecutive Year of Dividend Increases

Canadian Natural Resources Limited has declared a quarterly cash dividend of C$0.5875 per common share, payable on October 3, 2025. This announcement marks the 25th consecutive year of dividend increases, reflecting the company’s confidence in its sustainable business model and financial strength, with a compound annual growth rate of 21% over this period.

The most recent analyst rating on (TSE:CNQ) stock is a Hold with a C$47.00 price target. To see the full list of analyst forecasts on Canadian Natural stock, see the TSE:CNQ Stock Forecast page.

Canadian Natural Reports Strong Q2 2025 Results with Strategic Acquisitions and High Production

Canadian Natural Resources Limited announced strong second-quarter results for 2025, highlighting efficient operations and strategic acquisitions that have bolstered production levels and shareholder value. The company completed a planned turnaround at the Athabasca Oil Sands Project ahead of schedule and reported high production and upgrader utilization rates. Despite a temporary reduction in production due to the turnaround, overall quarterly production increased significantly from the previous year. The company also closed key acquisitions, including assets in the Palliser Block and Montney region, enhancing its asset base and production capabilities. Financially, Canadian Natural reported adjusted net earnings of $1.5 billion and returned $1.6 billion to shareholders, maintaining a robust balance sheet with significant liquidity.

The most recent analyst rating on (TSE:CNQ) stock is a Hold with a C$47.00 price target. To see the full list of analyst forecasts on Canadian Natural stock, see the TSE:CNQ Stock Forecast page.