Canadian Natural Resources Ltd Stock Upgraded (CNQ)

NEW YORK ( TheStreet) -- Canadian Natural Resources (NYSE: CNQ) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • CNQ's revenue growth has slightly outpaced the industry average of 22.8%. Since the same quarter one year prior, revenues rose by 25.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CANADIAN NATURAL RESOURCES reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, CANADIAN NATURAL RESOURCES increased its bottom line by earning $2.40 versus $1.56 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 300.0% when compared to the same quarter one year prior, rising from -$416.00 million to $832.00 million.
  • The gross profit margin for CANADIAN NATURAL RESOURCES is rather high; currently it is at 56.80%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.70% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 53.89% to $2,313.00 million when compared to the same quarter last year. In addition, CANADIAN NATURAL RESOURCES has also vastly surpassed the industry average cash flow growth rate of 3.45%.
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Canadian Natural Resources Limited engages in the exploration, development, production, marketing, and sale of crude oil, natural gas liquids, and natural gas. The company's products include light and medium crude oil, primary heavy crude oil, natural gas, and natural gas liquids. The company has a P/E ratio of 27, below the average energy industry P/E ratio of 30 and above the S&P 500 P/E ratio of 17.7. Canadian Natural has a market cap of $43.31 billion and is part of the basic materials sector and energy industry. Shares are down 4.3% year to date as of the close of trading on Monday.

You can view the full Canadian Natural Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet RatingsStaff

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