Canadian Natural Resources Ltd

Canadian Natural Resources Ltd maintains a capital structure with a debt-to-equity ratio of 0.32, indicating a relatively conservative leverage position. The company's liquidity position is characterized by a current ratio of 0.88, suggesting that its current liabilities exceed its current assets. This is further supported by a negative net cash position after subtracting total debt, which raises concerns about short-term liquidity.

In terms of profitability, the company's return on equity (ROE) is 2.5%, and its return on assets (ROA) is 1.3%. These figures are below the industry median for ROE and ROA, indicating that the company is underperforming its peers in terms of generating returns from equity and total assets.

The company's revenue is primarily concentrated in Canada, with a significant portion derived from its upstream operations in the oil and gas sector. While the company has international operations, the majority of its revenue is generated domestically, which may expose it to regional economic and regulatory risks.

Looking at the growth trajectory, the company's capital expenditures for the period were -1.113 billion CAD, indicating a reduction in investment in new projects or infrastructure. This may suggest a strategic shift or a response to market conditions. The company's free cash flow of 331 million CAD provides some flexibility for dividends or further investment, but the negative capital expenditure suggests a potential slowdown in growth initiatives.

The risk assessment highlights a medium liquidity risk, primarily due to the company's negative net cash position after accounting for total debt. The dilution risk is assessed as low, with no significant dilution potential identified in the basic shares outstanding. However, the company's risk profile should be monitored for any changes in market conditions or strategic decisions that could affect its liquidity and capital structure.

Recent events and filings indicate that the company is maintaining a stable financial position, with a focus on managing its debt and generating free cash flow. The company's management has emphasized the importance of maintaining a strong balance sheet and returning value to shareholders through dividends and share buybacks.

Canadian Natural Resources Ltd (CNQ.TO) has added several new unconventional oil and gas extraction assets to its portfolio, marking a notable expansion in its operational footprint. The additions include the Athabasca Area - Scheme 10423Y Oil Sands Oil Asset and the Athabasca Area - Scheme 11475II Oil Sands Oil Asset, both located in Alberta, Canada, and currently listed with an operating status. These assets are classified as unconventional oil extraction facilities, reinforcing the company's focus on its core oil sands operations. In addition to the Athabasca assets, the company has also added the 10618H/Cold Lake Oil and Gas Asset and the 12827A/Cold Lake Oil and Gas Asset, both situated in Alberta. While the Athabasca assets are confirmed as operating, the status for the Cold Lake assets is currently unspecified in the available data. These additions further diversify the company's unconventional resource base within the Canadian oil sands region. This expansion aligns with Canadian Natural Resources' established position as a major player in the Canadian energy sector, supported by its membership in one key index and a broad shareholder base of 35 top holders. The company's structure, overseen by two officers, continues to manage a complex portfolio of assets, with these new additions contributing to its overall production capacity and strategic presence in Alberta's oil sands. As this is the first analysis for this ticker, there is no prior basis for computing changes in performance or valuation metrics. However, the addition of these specific unconventional assets highlights the company's ongoing commitment to developing its oil sands reserves. Investors should monitor how these new operating assets integrate into the broader portfolio and contribute to future production and financial results.

Operating and net margins significantly exceed the oil and gas exploration and production cohort medians.

Analysts project 13.6% upside to the mean price target of $69.25 from the current market price.

Free cash flow is projected to surge 209.3% year-over-year to $6.77 billion in fiscal 2026.

Net income is forecast to grow 77.2% year-over-year to $10.82 billion in fiscal 2026.

Return on equity of 2.5% outperforms the negative 1.95% median for the peer cohort.

The company faces high credit risk according to the provided risk flag assessment.

Debt-to-equity ratio of 0.32 is significantly higher than the 0.09 cohort median.

Long-term debt increased substantially to $20.28 billion in fiscal 2025 before declining in 2026.

The company reported negative free cash flow of $6.19 billion in fiscal 2025.

Liquidity risk is assessed at a medium level in the provided risk flags.

Revenue C$9.61B, +1,5% YoY; Operating income +161,9% YoY.

• ▍Revenue C$9.61B, +1,5% YoY
• ▍Operating income +161,9% YoY
• ▍Net income +366,0% YoY
• ▍Free cash flow +154,4% YoY
• ▍Net margin 55.2%

Revenue C$9.52B, +7,0% YoY; Operating income −61,6% YoY.

• ▍Revenue C$9.52B, +7,0% YoY
• ▍Operating income −61,6% YoY
• ▍Net income −73,5% YoY
• ▍Free cash flow −157,2% YoY
• ▍Net margin 6.3%

Revenue C$8.70B, −3,9% YoY; Operating income −16,4% YoY.

• ▍Revenue C$8.70B, −3,9% YoY
• ▍Operating income −16,4% YoY
• ▍Net income +43,4% YoY
• ▍Free cash flow +74,1% YoY
• ▍Net margin 28.3%

Revenue C$10.94B, +32,7% YoY; Operating income +87,6% YoY.

• ▍Revenue C$10.94B, +32,7% YoY
• ▍Operating income +87,6% YoY
• ▍Net income +149,0% YoY
• ▍Free cash flow +456,2% YoY
• ▍Net margin 22.5%

Revenue C$9.47B; Operating income C$2.59B.

• ▍Revenue C$9.47B
• ▍Operating income C$2.59B
• ▍Net margin 12.0%

Revenue C$8.89B; Operating income C$2.82B.

• ▍Revenue C$8.89B
• ▍Operating income C$2.82B
• ▍Net margin 25.5%

Revenue C$9.05B; Operating income C$2.56B.

• ▍Revenue C$9.05B
• ▍Operating income C$2.56B
• ▍Net margin 18.9%

Revenue C$8.24B; Operating income C$1.75B.

• ▍Revenue C$8.24B
• ▍Operating income C$1.75B
• ▍Net margin 12.0%

Revenue C$38.76B, +8,7% YoY; Operating income +36,7% YoY.

• ▍Revenue C$38.76B, +8,7% YoY
• ▍Operating income +36,7% YoY
• ▍Net income +77,2% YoY
• ▍Free cash flow +209,3% YoY
• ▍Net margin 27.9%

Revenue C$35.66B, −0,9% YoY; Operating income −7,0% YoY.

• ▍Revenue C$35.66B, −0,9% YoY
• ▍Operating income −7,0% YoY
• ▍Net income −25,8% YoY
• ▍Free cash flow −205,8% YoY
• ▍Net margin 17.1%

Revenue C$35.97B, −15,0% YoY; Operating income −29,1% YoY.

• ▍Revenue C$35.97B, −15,0% YoY
• ▍Operating income −29,1% YoY
• ▍Net income −24,7% YoY
• ▍Free cash flow −28,9% YoY
• ▍Net margin 22.9%

Revenue C$42.30B, +40,7% YoY; Operating income +47,8% YoY.

• ▍Revenue C$42.30B, +40,7% YoY
• ▍Operating income +47,8% YoY
• ▍Net income +42,7% YoY
• ▍Free cash flow +22,4% YoY
• ▍Net margin 25.9%