Canadian Natural Resources Limited (CNQ): What Does Valuation Ratios Tell Us?

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Canadian Natural Resources Limited (NYSE:CNQ) saw a downside of -1.87% to $59.42 after subtracting -$1.13 on Wednesday. The 5-day average trading volume is 1,470,697 shares of the company’s common stock. It has gained $61.14 in the past week and touched a new high 3 times within the past 5 days. An average of 2,018,314 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 2,341,974.

CNQ’s 1-month performance is 10.05% or $3.62 on its low of $51.64 reached on 01/04/23. The company’s shares have touched a 52-week low of $43.67 and high of $69.14, with the stock’s rally to the 52-week high happening on 01/23/23. YTD, CNQ has achieved 9.04% or $3.92 and has reached a new high 9 times. However, the current price is down -14.06% from the 52-week high price.

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Valuation Metrics

CNQ stock has a beta of 1.59. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 2.12 while the price-to-book (PB) in the most recent quarter is 2.39, with the price to cash flow ratio at 5.96.

Canadian Natural Resources Limited’s quick ratio for the period ended September 29 was 0.60, with the current ratio over the same period at 0.80. As well, the company’s long term debt to equity for the quarter ending September 29 was 0.34, while the total debt to equity was 0.38. In terms of profitability, the gross margin trailing 12 months is 57.70%. The firm’s gross profit as reported stood at $13.01 billion against revenue of $23.98 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, Net income and sales went down compared to those figures reported in the previous quarter. Analysts expected CNQ to announce $2.11 per share in earnings in its latest quarter, but it posted $2.28, representing a 8.10% surprise. EBITDA for the quarter stood at more than $4.59 billion. CNQ stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 30.14 billion, with total debt at $14.48 billion.

Let’s look briefly at Canadian Natural Resources Limited (CNQ) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 61.44% to suggest the stock is trending Neutral, with historical volatility in this time period at 20.65%.

The stock’s 5-day moving average is $60.18, reflecting a +2.04% or $1.19 change from its current price. CNQ is currently trading +6.48% above its 20-day SMA, +8.47% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -2.45% and SMA200 by-5.72%.

Stochastic %K and %D was 91.71% and 95.01% and the average true range (ATR) pointed at 1.55. The RSI (14) points at 59.14%, while the 14-day stochastic is at 81.96% with the period’s ATR at 1.62. The stock’s 9-day MACD Oscillator is pointing at 1.26 and 2.89 on the 14-day charts.

Analyst Ratings

Analysts offering their rating for CNQ stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate CNQ as a “sell,”, while 8 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 1 rates the stock as overweight while 14 have offered a “buy” rating.


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