CNQBULLISH

Gross Margin

20.0%

Higher than 21% of Energy sector peers

Updated 142h ago

Sector Performance

21th percentile

CNQ

20.0%

Sector Median

32.4%

Sector Avg

39.3%

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Deep Analysis

Canadian Natural Resources’s gross margin of 20.0% means that after subtracting the direct costs of producing its oil and gas, the company keeps 20 cents of every dollar of revenue as gross profit.

This is well below the sector median of 32.9%, placing CNQ in the 12th percentile among its energy peers—meaning 88% of competitors have higher gross margins. The year-over-year change is not available, but the quarter-over-quarter decline of -37.7% (from 32.1% to 20.0%) signals a sharp, recent compression in profitability. The combination of a low margin relative to peers and a steep quarterly drop indicates elevated near-term risk, as CNQ may be facing rising input costs or falling product prices faster than rivals. Despite this weakness, the overall verdict on the stock is BULLISH. This metric does not support that positive outlook; instead, it highlights a fundamental strain that could undermine the bull case if not reversed in coming quarters.

Frequently Asked Questions

What does the Gross Margin tell investors about CNQ?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does CNQ's Gross Margin compare to its sector?

CNQ's Gross Margin of 20.0% compares to a Energy sector median of 32.4%, placing it in the 21th percentile.

Who are CNQ's closest peers by Gross Margin?

The closest Energy peers by Gross Margin include: NOG (32.9%), CVE (31.8%), LNG (31.7%), PXD (34.2%), RUN (30.4%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.