CNQBULLISH

Return on Equity (ROE)

22.8%

Higher than 82% of Energy sector peers

Updated 142h ago

Sector Performance

82th percentile

CNQ

22.8%

Sector Median

11.8%

Sector Avg

6.6%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' money — a 22.8% ROE means Canadian Natural Resources earned $0.228 for every dollar of equity.

That rate far surpasses the sector median of 13.1%, placing the company in the 81st percentile among energy peers, indicating superior profitability. Year-over-year change is not available, and quarter-over-quarter the ROE fell 6.6%, from 24.4% to 22.8%. Although the metric is currently very high, the slight quarterly decline suggests that recent profitability is softening, but the level remains well above the sector average. For investors, the combination of an elevated ROE with a modest dip signals a low-risk opportunity — the core business remains strongly profitable, and the drop may be temporary. This metric strongly supports the overall BULLISH verdict, as the company’s ROE far exceeds industry norms and still offers a wide margin of safety.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about CNQ?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does CNQ's Return on Equity (ROE) compare to its sector?

CNQ's Return on Equity (ROE) of 22.8% compares to a Energy sector median of 11.8%, placing it in the 82th percentile.

Who are CNQ's closest peers by Return on Equity (ROE)?

The closest Energy peers by Return on Equity (ROE) include: TRP (11.3%), ET (12.4%), IMO (12.4%), SLB (12.8%), SHEL (10.2%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.