Buffett Brain · Research note
Score updated 22 Oct 2026 · analysis from 24 Sept 2026
CNQ· Energy
Canadian Natural Resources
Canadian Natural Resources' strong net margin of 24.5% is top-quintile in energy, but its ROIC lags sector leaders.
Buffett fit
Partial fit
Owner
51
Durability
76
Management
82
Price
66
Score updated 22 Oct 2026 · analysis from 24 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Energy stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning 100% of Canadian Natural Resources would mean managing a vast portfolio of reserves and navigating the volatile energy markets.
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Over the next decade, Canadian Natural Resources' durability will depend on its ability to manage operational costs and maintain its reserve base.
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Management has effectively reduced the share count by 3% annually over the past five years, indicating shareholder-friendly practices.
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The current of 13.6 and an yield of 6.38% suggest the stock is not a bargain but fairly valued.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Net margin of 24.5% is top-quintile in the energy sector.
- 25-year EPS CAGR of 12.39% indicates solid growth.
- 3Management has reduced share count by 3% annually.
- 4Dividend CAGR of 29.78% over five years shows strong shareholder returns.
Concerns
5- 1 of 10.5% is below the sector's top-quintile cutoff of 11.8%.
- 2 of 31.4% is well below the sector's top-quintile cutoff of 50.7%.
- 3Current ratio of 0.98 suggests limited short-term liquidity.
- 4EV/ of 18.4 indicates the stock might be expensive.
Price history
$53.92+153.6%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Canadian Natural Resources Limited is primarily involved in the exploration, development, and marketing of crude oil and natural gas. It operates in Western Canada, the North Sea, and offshore Africa. The company has significant reserves, with 10,528 MMbbl of proved crude oil and bitumen. Its revenue comes from selling synthetic crude oil, light and medium crude oil, and natural gas liquids. The of 27.6% suggests efficient operations, though are below sector leaders.
How this analysis has moved
The call has held across 5 reviews.
Sep 27, 2026 → Oct 22, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Energy
Questions about Canadian Natural Resources
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