Last Updated: 10 Nov 2024
Executive Summary
Canadian Natural Resources Ltd (CNQ) is a leading Canadian energy company engaged in the acquisition, exploration, development, production, marketing, and sale of crude oil, natural gas, and natural gas liquids (NGL). The company has a strong financial position, with a market capitalization of approximately $72.5 billion and an EBITDA of $16.23 billion. CNQ's trailing price-to-earnings (PE) ratio of 13.56 is below the industry average, indicating potential undervaluation. The company's dividend yield of 0.0452% is modest, but it has a history of increasing dividends over the past several years.
Company Overview
CNQ is headquartered in Calgary, Canada, and operates in North America, the United Kingdom, and the North Sea. The company has a diverse portfolio of assets, including oil sands, conventional oil and gas, and offshore oil and gas. CNQ is also a major producer of natural gas liquids, which are used as feedstock for petrochemicals and plastics.
Fundamental Analysis
CNQ's financial performance has been strong in recent years. The company's revenue for the trailing twelve months (TTM) was $35.74 billion, and its diluted EPS was $2.52. CNQ's profit margin is 21.2%, and its operating margin is 31.7%. The company's return on assets (ROA) is 8.21%, and its return on equity (ROE) is 19.1%.
CNQ's balance sheet is also strong. The company has $18.88 per share in book value, and its debt-to-equity ratio is 0.43. CNQ's cash flow from operations is strong, and the company has a history of generating positive free cash flow.
Technical Analysis
CNQ's stock price has been trending higher in recent months. The stock is currently trading at $34.17, which is above its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 58, which indicates that the stock is neither overbought nor oversold.
Short Term Outlook
CNQ's stock price is expected to continue to trend higher in the short term. The company's strong financial performance and positive technical indicators suggest that the stock is undervalued. CNQ's stock price could reach $36-$38 in the next 3-6 months.
Long Term Outlook
CNQ's long-term outlook is also positive. The company's diverse portfolio of assets, strong financial position, and history of dividend growth make it a good investment for long-term investors. CNQ's stock price could reach $45-$50 in the next 5-10 years.
Analyst Recommendations
Analysts are generally bullish on CNQ's stock. The consensus analyst rating is "Buy," and the average analyst target price is $39.59. Five analysts have a "Strong Buy" rating on CNQ's stock, four have a "Buy" rating, three have a "Hold" rating, and zero have a "Sell" or "Strong Sell" rating.
