Canadian Natural (CNQ) AI Stock Analysis

• Market Cap: $86.20B
• Dividend Yield: 6.95%
• Average Volume (3M): 9.78M
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.99
• Revenue Growth: 3.42%
• EPS Growth: 11.18%
• Country: CA
• Employees: 10,640
• Sector: Energy
• Sector Strength: 44
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.71
• Shares Outstanding: 2,093,276,000
• 10 Day Avg. Volume: 6,871,915
• 30 Day Avg. Volume: 9,780,806
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 2.42
• Enterprise Value/Gross Profit: 8.88
• Enterprise Value/Ebitda: 6.16
• 1Y Price Target: $54.47
• Price Target Upside: 32.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 78 Outperform
• Price Target: C$49.00 ▲(19.08% Upside)

Canadian Natural Resources demonstrates strong financial performance and a positive outlook from recent earnings, supported by strategic acquisitions and robust shareholder returns. While technical indicators suggest a bearish trend, the company's valuation and dividend yield provide a solid foundation for long-term investors. The consistent dividend growth and strategic focus on cost efficiencies further enhance the stock's appeal.

Positive Factors

Financial Performance

Canadian Natural Resources posted higher cash flow per share due to lower royalties.

Free Cash Flow

Canadian Natural is expected to have one of the strongest free cash flow profiles in its peer group, giving it enhanced flexibility to increase returns.

Operational Excellence

Efficiency gains remain strong with improvements in turnaround times and cost management.

Negative Factors

Macro Outlook

There is a more uncertain macro outlook with downside risk to commodity prices.

Profitability

Operating expenses and realizations were slightly lower, which may impact profitability.

Canadian Natural Business Overview & Revenue Model

Company Description

Canadian Natural Resources Limited acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). The company offers synthetic crude oil (SCO), light and medium crude oil, bitumen (thermal oil), primary heavy crude oil, and Pelican Lake heavy crude oil. Its midstream and refining assets include two crude oil pipeline systems; and a 50% working interest in an 84-megawatt cogeneration plant at Primrose. As of December 31, 2020, the company had total proved crude oil, bitumen, and NGLs reserves were 10,528 million barrels (MMbbl); total proved plus probable crude oil, bitumen, and NGLs reserves were 13,271 MMbbl; proved SCO reserves were 6,998 MMbbl; total proved plus probable SCO reserves were 7,535 MMbbl; proved natural gas reserves were 12,168 billion cubic feet (Bcf); and total proved plus probable natural gas reserves were 20,249 Bcf. It operates primarily in Western Canada; the United Kingdom portion of the North Sea; and Offshore Africa. The company was formerly known as AEX Minerals Corporation and changed its name to Canadian Natural Resources Limited in December 1975. Canadian Natural Resources Limited was incorporated in 1973 and is headquartered in Calgary, Canada.

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 robust financial health with strong growth in both revenue and profit margins, supported by efficient operations and effective capital management. The balance sheet indicates a careful leverage strategy, though increasing debt levels warrant attention. Overall, the company shows a positive financial trajectory with strong returns for shareholders.

Income Statement

The company demonstrated strong revenue growth from the previous period with a TTM revenue of $40.12 billion, up from $35.66 billion annually. Gross and net profit margins are healthy at 29.6% and 18.9% respectively, indicating efficient cost management. EBIT and EBITDA margins of 28.1% and 44.3% further highlight operational efficiency.

Balance Sheet

A solid equity ratio of 47.7% suggests prudent financial management, though the debt-to-equity ratio of 0.43 indicates moderate leverage. The return on equity is robust at 18.7%, reflecting strong shareholder returns. However, the increase in total debt over the TTM period signals potential risk if not managed carefully.

Cash Flow

The operating cash flow to net income ratio of 1.95 suggests strong cash generation relative to profit. Free cash flow growth rate is impressive at 15.4%, indicating effective capital management. However, the cash reserves are relatively low, which could limit flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.80B	41.51B	40.84B	49.53B	32.85B	17.49B
Gross Profit	12.19B	10.90B	11.77B	16.26B	10.58B	69.00M
EBITDA	17.56B	15.41B	17.27B	21.73B	16.38B	6.00B
Net Income	7.58B	6.11B	8.23B	10.94B	7.66B	-435.00M
Balance Sheet
Total Assets	84.81B	85.36B	75.95B	76.14B	76.67B	75.28B
Cash, Cash Equivalents and Short-Term Investments	93.00M	131.00M	1.40B	1.41B	1.05B	489.00M
Total Debt	17.43B	20.28B	12.35B	12.98B	14.69B	21.45B
Total Liabilities	44.37B	45.89B	36.12B	37.97B	39.72B	42.90B
Stockholders Equity	40.45B	39.47B	39.83B	38.17B	36.95B	32.38B
Cash Flow
Free Cash Flow	9.25B	8.00B	7.44B	14.29B	9.99B	2.16B
Operating Cash Flow	14.80B	13.39B	12.35B	19.39B	14.48B	4.71B
Investing Cash Flow	-14.02B	-14.10B	-4.86B	-4.99B	-3.70B	-2.82B
Financing Cash Flow	-1.46B	-37.00M	-7.54B	-14.23B	-10.21B	-1.85B

Canadian Natural Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.15
• 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 41.15 is below the 20-day moving average (MA) of 42.58, below the 50-day MA of 43.34, and below the 200-day MA of 42.75, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 36.62 is Neutral, neither overbought nor oversold. The STOCH value of 7.95 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
CNQ	78 Outperform	$86.20B	10.42	20.18%	6.95%	3.42%	11.18%
Sector *	45 Neutral	AU$1.35B	-9.94	-2.14%	8.49%	2.33%	-32.99%
MEGEF	―	$4.93B	12.82	11.70%	1.48%	―	―
WCPRF	―	$9.07B	7.00	11.56%	7.05%	―	―
PREKF	―	$4.08B	25.91	8.08%	4.24%	―	―
TOU	73 Outperform	C$22.50B	14.44	9.76%	5.27%	3.86%	-5.32%
AETUF	―	$11.43B	10.76	18.43%	2.70%	―	―

Canadian Natural Corporate Events

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.