Canadian Natural Resources Stock Beneish M Score
| CNQ Stock | USD 74.65 0.21 0.28% |
Canadian | Beneish M Score |
At this time, Canadian Natural's M Score is unavailable. The earnings manipulation may begin if Canadian Natural's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Canadian Natural executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Canadian Natural's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.03
Beneish M Score - Unavailable
Canadian Natural Beneish M-Score Indicator Trends
The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Canadian Natural's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Net Receivables | 3.3 B | 3.2 B |
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| Total Revenue | 37.8 B | 36 B |
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| Total Assets | 40.8 B | 76 B |
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| Total Current Assets | 7.5 B | 7.2 B |
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| Non Current Assets Total | 38.1 B | 68.8 B |
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| Property Plant Equipment | 44.5 B | 78.8 B |
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| Depreciation And Amortization | 7.1 B | 6.8 B |
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| Selling General Administrative | 990.1 M | 943 M |
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| Total Current Liabilities | 7.8 B | 7.4 B |
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| Non Current Liabilities Total | 18.6 B | 28.7 B |
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| Net Debt | 9.7 B | 11.5 B |
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| Short Term Debt | 860.4 M | 1.3 B |
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| Long Term Debt | 11 B | 9.8 B |
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| Total Cash From Operating Activities | 13 B | 12.4 B |
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Canadian Natural Res Beneish M-Score Driver Matrix
One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Canadian Natural's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Canadian Natural in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Canadian Natural's degree of accounting gimmicks and manipulations.
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About Canadian Natural Beneish M Score
M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.
Other Operating Expenses |
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Canadian Natural Earnings Manipulation Drivers
Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Canadian Natural. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Net Receivables | 2.5B | 2.5B | 3.1B | 3.6B | 3.2B | 3.3B | |
| Total Revenue | 24.4B | 17.5B | 32.9B | 49.5B | 36.0B | 37.8B | |
| Total Assets | 78.1B | 75.3B | 76.7B | 76.1B | 76.0B | 40.8B | |
| Total Current Assets | 4.5B | 4.4B | 5.9B | 7.1B | 7.2B | 7.5B | |
| Net Debt | 20.8B | 21.3B | 14.0B | 10.5B | 11.5B | 9.7B | |
| Short Term Debt | 2.4B | 1.3B | 1B | 404M | 1.3B | 860.4M | |
| Long Term Debt | 18.6B | 20.1B | 13.7B | 11.0B | 9.8B | 11.0B | |
| Operating Income | 5.6B | (445M) | 9.5B | 14.8B | 10.5B | 11.0B | |
| Investments | (7.3B) | (2.8B) | 128M | (5.0B) | (5.2B) | (4.9B) |
Canadian Natural ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Canadian Natural's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Canadian Natural's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
About Canadian Natural Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Canadian Natural Resources's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Canadian Natural using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Canadian Natural Resources based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Canadian Natural
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Canadian Natural position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Canadian Natural will appreciate offsetting losses from the drop in the long position's value.Moving together with Canadian Stock
| 0.87 | AR | Antero Resources Corp | PairCorr |
| 0.97 | PR | Permian Resources Earnings Call This Week | PairCorr |
| 0.95 | SD | SandRidge Energy | PairCorr |
| 0.98 | SM | SM Energy | PairCorr |
Moving against Canadian Stock
| 0.68 | EP | Empire Petroleum Corp | PairCorr |
The ability to find closely correlated positions to Canadian Natural could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Canadian Natural when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Canadian Natural - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Canadian Natural Resources to buy it.
The correlation of Canadian Natural is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Canadian Natural moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Canadian Natural Res moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Canadian Natural can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Canadian Natural Piotroski F Score and Canadian Natural Altman Z Score analysis. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
Complementary Tools for Canadian Stock analysis
When running Canadian Natural's price analysis, check to measure Canadian Natural's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Canadian Natural is operating at the current time. Most of Canadian Natural's value examination focuses on studying past and present price action to predict the probability of Canadian Natural's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Canadian Natural's price. Additionally, you may evaluate how the addition of Canadian Natural to your portfolios can decrease your overall portfolio volatility.
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Is Canadian Natural's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Canadian Natural. If investors know Canadian will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Canadian Natural listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.44) | Dividend Share 3.7 | Earnings Share 4.93 | Revenue Per Share 32.837 | Quarterly Revenue Growth (0.04) |
The market value of Canadian Natural Res is measured differently than its book value, which is the value of Canadian that is recorded on the company's balance sheet. Investors also form their own opinion of Canadian Natural's value that differs from its market value or its book value, called intrinsic value, which is Canadian Natural's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Canadian Natural's market value can be influenced by many factors that don't directly affect Canadian Natural's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Canadian Natural's value and its price as these two are different measures arrived at by different means. Investors typically determine if Canadian Natural is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Canadian Natural's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.