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CNQCanadian Natural Resources Limited
$47.64$99.4B
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  4. Financial Ratios

Canadian Natural Resources Limited (CNQ) Financial Ratios

Latest Ratios: P/E Ratio 13.0x · EV/EBITDA 10.1x · 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$99.4B$71.0B$66.1B$72.2B$63.0B$49.9B$28.4B$38.5B$29.4B$42.3B$35.1B
Enterprise Value$112.9B$90.0B$86.2B$82.1B$75.1B$65.5B$46.5B$56.0B$49.9B$64.6B$51.9B
P/E Ratio →13.036.5610.838.765.766.52—7.1311.3917.51—
P/S Ratio3.171.611.851.771.271.521.631.691.322.393.16
P/B Ratio3.181.601.671.811.651.351.121.430.921.331.34
P/FCF16.658.438.169.704.416.3213.207.385.1816.48—
P/OCF9.294.704.945.853.254.366.034.372.915.8210.16

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 / EBITDA10.065.693.694.873.404.307.743.284.908.5913.94
EV / EBIT19.366.318.877.575.226.14—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 Yield3.5%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 Yield7.7%15.2%9.2%11.4%17.4%15.3%—14.0%8.8%5.7%—
FCF Yield6.0%11.9%12.3%10.3%22.7%15.8%7.6%13.5%19.3%6.1%—
Buyback Yield1.0%2.0%4.0%4.6%8.8%2.5%1.0%2.4%4.4%0.0%0.0%
Total Shareholder Yield4.5%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

SCO price volatility and emissions cap

Margin Volatility Masks Underlying Strength

Gross margin swung from 20.0% in 2025Q4 to 37.2% in 2026Q2, per financial statements, reflecting commodity price swings rather than structural change. Net margin of 49.5% in 2025Q4 likely includes non-operating gains, warranting caution.

The wide quarterly swings in gross margin—from 20.0% to 48.4% over the past ten quarters—indicate that profitability is highly sensitive to realized commodity prices and cost inflation, not a stable trend. The net margin of 49.5% in 2025Q4 far exceeding the operating margin of 16.8% suggests one-time tax benefits or unrealized gains, which investors should exclude when assessing sustainable earning power. Based on reported figures, the core operating margin of 36.9% in 2026Q2 appears more representative of the company's ability to convert revenue into profit, but its volatility implies that margin expansion is not yet durable.

Return on Capital Shows Cyclicality

ROIC ranged from 2.2% in 2025Q4 to 8.9% in 2026Q2, per company filings, indicating high sensitivity to commodity prices. The 10-quarter average of 4.2% suggests returns are cyclical, not compounding, reflecting the capital-intensive nature of oil sands.

ROIC has been volatile, with a low of 2.2% in 2025Q4 and a high of 8.9% in 2026Q2, per reported data, demonstrating that capital efficiency is heavily dependent on the price environment. The average ROIC of approximately 4.2% over the last ten quarters is modest, but it understates the potential of the low-decline assets, which can generate higher returns when prices normalize. Investors should monitor whether the recent improvement in ROIC to 8.9% is sustainable, as it may indicate that the company is entering a phase of better capital productivity, but the cyclicality suggests caution.

Working Capital Efficiency Improves

Cash conversion cycle improved to 33 days in 2026Q2 from 65 days in 2025Q3, per financial statements, driven by faster collection and lower inventory days. This suggests better working capital management, though DPO remains low at 11 days.

The cash conversion cycle has shortened significantly, from 65 days in 2025Q3 to 33 days in 2026Q2, as reported in financial statements, indicating improved efficiency in converting production into cash. The reduction in DSO from 37 to 24 days and DIO from 51 to 21 days over the same period suggests tighter control over receivables and inventory, which is positive for cash flow. However, DPO of 11 days is low, implying that CNQ pays suppliers quickly, which may reflect its strong bargaining position but also means it is not leveraging supplier credit to fund operations.

Leverage Rebound After Debt Reduction

Debt-to-equity rose to 0.37 in 2026Q2 from 0.25 in 2024Q3, per balance sheet data, as total debt increased to $17.1B. Interest coverage remains strong at 25.74x, indicating comfortable debt service despite re-leveraging.

The increase in debt-to-equity from 0.25 in 2024Q3 to 0.37 in 2026Q2, as per financial statements, suggests a strategic re-leveraging, possibly to fund growth or shareholder returns. Despite the higher leverage, interest coverage of 25.74x in 2026Q2 is robust, indicating that the company can comfortably service its debt even if commodity prices weaken. The D/EBITDA ratio of 2.08 in 2026Q2 is moderate, but investors should monitor whether the company continues to increase debt, as this could strain the balance sheet if cash flows decline.

Liquidity Tightens Despite Cash Build

Current ratio improved to 1.00 in 2026Q2 from 0.77 in 2024Q4, per company filings, but quick ratio of 0.75 indicates reliance on inventory. Cash of $2.6B remains modest relative to total debt of $17.1B.

The current ratio has improved to 1.00 in 2026Q2, as reported in financial statements, from 0.77 in 2024Q4, indicating better short-term liquidity, but the quick ratio of 0.75 suggests that inventory is a significant component of current assets. This reliance on inventory could be a concern in a downturn, as inventory values may decline with commodity prices. Cash of $2.6B is modest relative to total debt of $17.1B, but the strong operating cash flow and access to credit markets likely mitigate liquidity risk, though investors should monitor the cash position under stress scenarios.

P/E Misapplied to Cyclical Earnings

The P/E ratio of 12.90, based on trailing earnings, is misleading for CNQ because earnings are highly cyclical and influenced by non-operating items. A more appropriate metric is EV/EBITDA, which at 9.97 better reflects the company's cash-generating ability.

The trailing P/E of 12.90 is distorted by volatile net income, which in 2025Q4 included a net margin of 49.5% likely due to one-time gains, as per financial statements. This makes the P/E ratio unreliable for valuation, as it does not reflect the company's normalized earning power. EV/EBITDA of 9.97 is a more stable metric, as EBITDA is less affected by non-cash items and financing decisions, and it better captures the cash-generating potential of the low-decline oil sands assets. Investors should focus on EV/EBITDA and forward multiples, which at 6.95 suggest a more reasonable valuation relative to peers.

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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 13.0x. The historical average is 12.3x. This places it at the 65th percentile of its historical range.

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

Canadian Natural Resources Limited's current EV/EBITDA is 10.1x. 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 13.0x. This is at the 65th 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 3.45% 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.