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CNQCanadian Natural Resources Limited
$39.35$82.1B
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  4. Financial Ratios

Canadian Natural Resources Limited (CNQ) Financial Ratios

Latest Ratios: P/E Ratio 10.9x · EV/EBITDA 8.6x · ROE 25.8%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

CNQ Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$82.1B$71.0B$66.1B$72.2B$63.0B$49.9B$28.4B$38.5B$29.4B$42.3B$35.1B
Enterprise Value$95.5B$90.0B$86.2B$82.1B$75.1B$65.5B$46.5B$56.0B$49.9B$64.6B$51.9B
P/E Ratio →10.856.5610.838.765.766.52—7.1311.3917.51—
P/S Ratio2.641.611.851.771.271.521.631.691.322.393.16
P/B Ratio2.651.601.671.811.651.351.121.430.921.331.34
P/FCF13.878.438.169.704.416.3213.207.385.1816.48—
P/OCF7.744.704.945.853.254.366.034.372.915.8210.16

P/E links to full P/E history page with 30-year chart

CNQ EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—2.042.422.011.521.992.662.452.243.654.67
EV / EBITDA8.585.693.694.873.404.307.743.284.908.5913.94
EV / EBIT16.516.318.877.575.226.14—10.1011.5617.93—
EV / FCF—10.6910.6511.035.268.2921.5710.738.7925.18—

CNQ Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin21.3%21.3%49.3%28.8%32.8%32.2%0.4%52.0%23.4%16.7%-3.9%
Operating Margin18.6%18.6%47.1%25.6%29.8%29.0%—49.5%21.8%13.2%-11.5%
Net Profit Margin24.5%24.5%17.1%20.2%22.1%23.3%-2.5%23.7%11.6%13.6%-1.8%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE25.8%25.8%15.4%21.1%29.1%24.6%-1.7%18.4%8.1%8.3%-0.8%
ROA12.2%12.2%7.6%10.8%14.3%11.3%-0.7%8.1%3.6%3.6%-0.3%
ROIC10.0%10.0%23.0%15.7%21.6%14.9%—17.5%6.8%3.6%-2.2%
ROCE10.3%10.3%23.3%15.4%21.6%15.3%—18.3%7.2%3.9%-2.4%

CNQ Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.440.440.510.270.340.440.710.650.640.710.64
Debt / EBITDA1.241.240.870.640.591.073.031.032.022.994.52
Net Debt / Equity—0.430.510.250.320.420.710.650.640.710.64
Net Debt / EBITDA1.201.200.860.590.551.023.001.022.012.974.51
Debt / FCF—2.262.491.330.841.978.373.353.618.71—
Interest Coverage13.7413.7414.4415.7121.4514.34-0.056.085.414.95-1.48

CNQ Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio0.950.950.770.960.820.800.860.680.630.780.85
Quick Ratio0.630.630.480.690.610.590.650.500.430.640.72
Cash Ratio0.080.080.010.190.160.140.100.090.130.160.18
Asset Turnover—0.480.420.540.650.430.300.370.310.240.19
Inventory Turnover13.2813.286.4714.2918.3314.3920.9412.3617.8716.4616.74
Days Sales Outstanding—33.0242.2428.5026.2034.5640.9330.5018.8156.1775.15

CNQ Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield4.1%6.9%6.7%5.4%7.8%3.4%6.9%4.5%5.3%3.0%2.2%
Payout Ratio45.0%45.0%72.5%47.3%45.0%22.4%—32.2%60.3%52.2%—

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield9.2%15.2%9.2%11.4%17.4%15.3%—14.0%8.8%5.7%—
FCF Yield7.2%11.9%12.3%10.3%22.7%15.8%7.6%13.5%19.3%6.1%—
Buyback Yield1.2%2.0%4.0%4.6%8.8%2.5%1.0%2.4%4.4%0.0%0.0%
Total Shareholder Yield5.4%8.9%10.7%10.0%16.7%5.9%7.8%7.0%9.7%3.0%2.2%
Shares Outstanding—$2.1B$2.1B$2.2B$2.3B$2.4B$2.4B$2.4B$2.4B$2.4B$2.2B

Key Metrics

Growth RegimeMixed
ProfitabilityModerate
Balance SheetHealthy
Cash FlowRobust
Top Statement Risk

Commodity price and differential volatility

Reliability Premium Over Traditional Peers

Based on current market data, CNQ trades at a P/E of 10.86, which suggests investors are assigning a reliability premium to its long-life assets compared to the broader E&P sector, despite the inherent cyclicality of its synthetic crude oil and bitumen-heavy production profile.

The forward P/E of 9.27 implies that the market anticipates sustained cash flow generation, likely pricing in the structural benefits of the Trans Mountain Expansion. However, the valuation remains sensitive to the WCS-WTI differential, and investors should monitor whether this premium is justified by consistent operational execution rather than temporary commodity price tailwinds.

Capital Efficiency Amid Asset Intensity

According to quarterly financial reports, CNQ's ROIC has fluctuated between 2.2% and 5.7% over the last ten quarters, reflecting the significant capital intensity required to maintain its massive oil sands mining and upgrading infrastructure in a volatile commodity price environment.

The variability in returns suggests that while the company possesses a structural cost advantage, its ability to compound capital is heavily tethered to the realized price of bitumen. Investors should interpret these returns as a function of sustaining capital requirements, which appear to be a persistent drag on overall capital efficiency.

Working Capital and Operational Velocity

As reported in recent filings, CNQ's cash conversion cycle has remained relatively stable, averaging between 41 and 65 days, which indicates a disciplined approach to managing its inventory of synthetic crude and bitumen despite the logistical complexities of Western Canadian pipeline bottlenecks.

The asset turnover ratio, consistently low at approximately 0.11 to 0.15, underscores the extreme capital intensity of the business model. This low turnover is a structural reality of the oil sands industry, implying that operational efficiency gains are likely to be incremental rather than transformative.

Disciplined Leverage Amid Capital Intensity

Based on the company's reported figures, the debt-to-equity ratio has remained contained within a 0.25 to 0.51 range, suggesting that management has successfully navigated the capital-intensive nature of its operations while maintaining a healthy balance sheet relative to its integrated energy peers.

The interest coverage ratio, which has seen peaks near 28x, indicates that debt service remains comfortable under current commodity price regimes. However, the reliance on debt to fund large-scale infrastructure projects warrants ongoing monitoring, particularly if the company continues its aggressive shareholder return policy.

Misapplication of Traditional E&P Multiples

The most commonly misapplied metric for CNQ is the standard P/E ratio, which fails to account for the non-depleting nature of its long-life oil sands assets, often leading analysts to undervalue the company's durability compared to traditional, high-decline shale exploration and production firms.

Because CNQ operates more like a resource utility with near-zero decline rates on its core mining assets, the P/E ratio obscures the true quality of its earnings. A more appropriate framework would involve a focus on free cash flow yield or a net asset value (NAV) model that incorporates the long-term production tail.

Download Financial Ratios Data

Includes 30+ ratios · 30 years · Updated daily

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CNQ — Frequently Asked Questions

Quick answers to the most common questions about buying CNQ stock.

What is Canadian Natural Resources Limited's P/E ratio?

Canadian Natural Resources Limited's current P/E ratio is 10.9x. The historical average is 12.3x. This places it at the 52th percentile of its historical range.

What is Canadian Natural Resources Limited's EV/EBITDA?

Canadian Natural Resources Limited's current EV/EBITDA is 8.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 5.9x.

What is Canadian Natural Resources Limited's ROE?

Canadian Natural Resources Limited's return on equity (ROE) is 25.8%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 14.9%.

Is CNQ stock overvalued?

Based on historical data, Canadian Natural Resources Limited is trading at a P/E of 10.9x. This is at the 52th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is Canadian Natural Resources Limited's dividend yield?

Canadian Natural Resources Limited's current dividend yield is 4.14% with a payout ratio of 45.0%.

What are Canadian Natural Resources Limited's profit margins?

Canadian Natural Resources Limited has 21.3% gross margin and 18.6% operating margin. Operating margin between 10-20% is typical for established companies.

How much debt does Canadian Natural Resources Limited have?

Canadian Natural Resources Limited's Debt/EBITDA ratio is 1.2x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.