CENOVUS ENERGY INC - CVECN 2.404 PERP (CVE-PR-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CVE-PR-A - CA15135U3073
24.54 CAD
-0.11 (-0.45%)
Taking everything into account, CVE-PR-A scores 6 out of 10 in our fundamental rating. CVE-PR-A was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. While CVE-PR-A has a great profitability rating, there are some minor concerns on its financial health. CVE-PR-A has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year CVE-PR-A was profitable.
- In the past year CVE-PR-A had a positive cash flow from operations.
- Of the past 5 years CVE-PR-A 4 years were profitable.
- In the past 5 years CVE-PR-A always reported a positive cash flow from operatings.
1.2 Ratios
- CVE-PR-A has a Return On Assets of 5.83%. This is amongst the best in the industry. CVE-PR-A outperforms 87.38% of its industry peers.
- CVE-PR-A has a Return On Equity of 11.00%. This is amongst the best in the industry. CVE-PR-A outperforms 82.71% of its industry peers.
- With an excellent Return On Invested Capital value of 7.09%, CVE-PR-A belongs to the best of the industry, outperforming 85.51% of the companies in the same industry.
- CVE-PR-A had an Average Return On Invested Capital over the past 3 years of 11.92%. This is significantly above the industry average of 6.53%.
- The 3 year average ROIC (11.92%) for CVE-PR-A is well above the current ROIC(7.09%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.83% | ||
| ROE | 11% | ||
| ROIC | 7.09% |
ROA(3y)8.18%
ROA(5y)3.66%
ROE(3y)15.96%
ROE(5y)7.2%
ROIC(3y)11.92%
ROIC(5y)N/A
1.3 Margins
- With a decent Profit Margin value of 6.17%, CVE-PR-A is doing good in the industry, outperforming 60.28% of the companies in the same industry.
- CVE-PR-A's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 8.46%, CVE-PR-A perfoms like the industry average, outperforming 56.54% of the companies in the same industry.
- CVE-PR-A's Operating Margin has improved in the last couple of years.
- CVE-PR-A has a Gross Margin (33.16%) which is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of CVE-PR-A has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.46% | ||
| PM (TTM) | 6.17% | ||
| GM | 33.16% |
OM growth 3Y-3.42%
OM growth 5Y2.33%
PM growth 3Y68.65%
PM growth 5Y-12.05%
GM growth 3Y-13%
GM growth 5Y-11.02%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CVE-PR-A is creating some value.
- Compared to 1 year ago, CVE-PR-A has less shares outstanding
- Compared to 5 years ago, CVE-PR-A has more shares outstanding
- CVE-PR-A has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.72 indicates that CVE-PR-A is not a great score, but indicates only limited risk for bankruptcy at the moment.
- CVE-PR-A's Altman-Z score of 2.72 is fine compared to the rest of the industry. CVE-PR-A outperforms 76.17% of its industry peers.
- The Debt to FCF ratio of CVE-PR-A is 3.55, which is a good value as it means it would take CVE-PR-A, 3.55 years of fcf income to pay off all of its debts.
- CVE-PR-A has a Debt to FCF ratio of 3.55. This is amongst the best in the industry. CVE-PR-A outperforms 83.18% of its industry peers.
- CVE-PR-A has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
- CVE-PR-A's Debt to Equity ratio of 0.34 is in line compared to the rest of the industry. CVE-PR-A outperforms 58.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 2.72 |
ROIC/WACC0.95
WACC7.48%
2.3 Liquidity
- A Current Ratio of 1.73 indicates that CVE-PR-A should not have too much problems paying its short term obligations.
- The Current ratio of CVE-PR-A (1.73) is better than 76.64% of its industry peers.
- A Quick Ratio of 1.18 indicates that CVE-PR-A should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.18, CVE-PR-A is in the better half of the industry, outperforming 70.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
- The earnings per share for CVE-PR-A have decreased strongly by -12.76% in the last year.
- CVE-PR-A shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.97% yearly.
- Looking at the last year, CVE-PR-A shows a decrease in Revenue. The Revenue has decreased by -9.17% in the last year.
- CVE-PR-A shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.88% yearly.
EPS 1Y (TTM)-12.76%
EPS 3Y87.2%
EPS 5Y33.97%
EPS Q2Q%71.43%
Revenue 1Y (TTM)-9.17%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-7.4%
3.2 Future
- Based on estimates for the next years, CVE-PR-A will show a very strong growth in Earnings Per Share. The EPS will grow by 22.84% on average per year.
- The Revenue is expected to decrease by -5.25% on average over the next years.
EPS Next Y12.31%
EPS Next 2Y-8.37%
EPS Next 3Y6.59%
EPS Next 5Y22.84%
Revenue Next Year-7.27%
Revenue Next 2Y-13.48%
Revenue Next 3Y-5.25%
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.35, which indicates a correct valuation of CVE-PR-A.
- CVE-PR-A's Price/Earnings ratio is a bit cheaper when compared to the industry. CVE-PR-A is cheaper than 69.16% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.30. CVE-PR-A is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 17.82, CVE-PR-A is valued on the expensive side.
- CVE-PR-A's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CVE-PR-A is cheaper than 60.75% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. CVE-PR-A is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.35 | ||
| Fwd PE | 17.82 |
4.2 Price Multiples
- 87.38% of the companies in the same industry are more expensive than CVE-PR-A, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, CVE-PR-A is valued a bit cheaper than 68.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.43 | ||
| EV/EBITDA | 5.85 |
4.3 Compensation for Growth
- CVE-PR-A's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- CVE-PR-A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.17
PEG (5Y)0.42
EPS Next 2Y-8.37%
EPS Next 3Y6.59%
5. Dividend
5.1 Amount
- CVE-PR-A has a Yearly Dividend Yield of 3.18%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.82, CVE-PR-A pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, CVE-PR-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
5.2 History
- The dividend of CVE-PR-A is nicely growing with an annual growth rate of 31.72%!
- CVE-PR-A has been paying a dividend for at least 10 years, so it has a reliable track record.
- CVE-PR-A has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)31.72%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
- 45.02% of the earnings are spent on dividend by CVE-PR-A. This is a bit on the high side, but may be sustainable.
- CVE-PR-A's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP45.02%
EPS Next 2Y-8.37%
EPS Next 3Y6.59%
CENOVUS ENERGY INC - CVECN 2.404 PERP / CVE-PR-A.CA FAQ
What is the ChartMill fundamental rating of CENOVUS ENERGY INC - CVECN 2.404 PERP (CVE-PR-A.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to CVE-PR-A.CA.
What is the valuation status for CVE-PR-A stock?
ChartMill assigns a valuation rating of 5 / 10 to CENOVUS ENERGY INC - CVECN 2.404 PERP (CVE-PR-A.CA). This can be considered as Fairly Valued.
What is the profitability of CVE-PR-A stock?
CENOVUS ENERGY INC - CVECN 2.404 PERP (CVE-PR-A.CA) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for CVE-PR-A stock?
The Price/Earnings (PE) ratio for CENOVUS ENERGY INC - CVECN 2.404 PERP (CVE-PR-A.CA) is 14.35 and the Price/Book (PB) ratio is 1.63.
Is the dividend of CENOVUS ENERGY INC - CVECN 2.404 PERP sustainable?
The dividend rating of CENOVUS ENERGY INC - CVECN 2.404 PERP (CVE-PR-A.CA) is 6 / 10 and the dividend payout ratio is 45.02%.