CENOVUS ENERGY INC (CVE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CVE - CA15135U1093 - Common Stock
25.59 CAD
+0.13 (+0.51%)
We assign a fundamental rating of 6 out of 10 to CVE. CVE was compared to 215 industry peers in the Oil, Gas & Consumable Fuels industry. While CVE has a great profitability rating, there are some minor concerns on its financial health. CVE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CVE had positive earnings in the past year.
CVE had a positive operating cash flow in the past year.
CVE had positive earnings in 4 of the past 5 years.
In the past 5 years CVE always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 5.83%, CVE belongs to the best of the industry, outperforming 87.91% of the companies in the same industry.
CVE has a better Return On Equity (11.00%) than 82.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.09%, CVE belongs to the top of the industry, outperforming 82.79% of the companies in the same industry.
CVE 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 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
CVE has a Profit Margin of 6.17%. This is comparable to the rest of the industry: CVE outperforms 58.14% of its industry peers.
CVE's Profit Margin has declined in the last couple of years.
CVE has a Operating Margin (8.46%) which is comparable to the rest of the industry.
CVE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 33.16%, CVE is in line with its industry, outperforming 51.63% of the companies in the same industry.
In the last couple of years the Gross Margin of CVE 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 is creating some value.
CVE has less shares outstanding than it did 1 year ago.
CVE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CVE has a worse debt to assets ratio.
2.2 Solvency
CVE has an Altman-Z score of 2.77. This is not the best score and indicates that CVE is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.77, CVE is in the better half of the industry, outperforming 78.60% of the companies in the same industry.
The Debt to FCF ratio of CVE is 3.55, which is a good value as it means it would take CVE, 3.55 years of fcf income to pay off all of its debts.
CVE has a better Debt to FCF ratio (3.55) than 84.19% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that CVE is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.34, CVE is in line with its industry, outperforming 58.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 2.77 |
ROIC/WACC0.95
WACC7.46%
2.3 Liquidity
CVE has a Current Ratio of 1.73. This is a normal value and indicates that CVE is financially healthy and should not expect problems in meeting its short term obligations.
CVE has a Current ratio of 1.73. This is in the better half of the industry: CVE outperforms 76.28% of its industry peers.
A Quick Ratio of 1.18 indicates that CVE should not have too much problems paying its short term obligations.
CVE has a better Quick ratio (1.18) than 68.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The earnings per share for CVE have decreased strongly by -12.76% in the last year.
Measured over the past years, CVE shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.97% on average per year.
The Revenue has decreased by -9.17% in the past year.
Measured over the past years, CVE shows a very strong growth in Revenue. The Revenue has been growing by 21.88% on average per year.
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 will show a very strong growth in Earnings Per Share. The EPS will grow by 26.68% on average per year.
The Revenue is expected to decrease by -8.10% on average over the next years.
EPS Next Y11.84%
EPS Next 2Y-3.84%
EPS Next 3Y10.24%
EPS Next 5Y26.68%
Revenue Next Year-8%
Revenue Next 2Y-8.96%
Revenue Next 3Y-8.1%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.96, which indicates a correct valuation of CVE.
CVE's Price/Earnings ratio is a bit cheaper when compared to the industry. CVE is cheaper than 66.51% of the companies in the same industry.
CVE is valuated rather cheaply when we compare the Price/Earnings ratio to 26.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.88, the valuation of CVE can be described as correct.
CVE's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 35.40. CVE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 16.88 |
4.2 Price Multiples
CVE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CVE is cheaper than 85.12% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CVE is valued a bit cheaper than the industry average as 65.58% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.13 | ||
| EV/EBITDA | 6.06 |
4.3 Compensation for Growth
CVE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CVE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.26
PEG (5Y)0.44
EPS Next 2Y-3.84%
EPS Next 3Y10.24%
5. Dividend
5.1 Amount
CVE has a Yearly Dividend Yield of 3.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.88, CVE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, CVE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
5.2 History
The dividend of CVE is nicely growing with an annual growth rate of 31.72%!
CVE has been paying a dividend for at least 10 years, so it has a reliable track record.
CVE has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)31.72%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
45.02% of the earnings are spent on dividend by CVE. This is a bit on the high side, but may be sustainable.
The dividend of CVE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.02%
EPS Next 2Y-3.84%
EPS Next 3Y10.24%
TSX:CVE (12/4/2025, 7:00:00 PM)
25.59
+0.13 (+0.51%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners51.38%
Inst Owner ChangeN/A
Ins Owners0.67%
Ins Owner ChangeN/A
Market Cap48.37B
Revenue(TTM)50.56B
Net Income(TTM)3.12B
Analysts80.95
Price Target28.41 (11.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Yearly Dividend0.84
Dividend Growth(5Y)31.72%
DP45.02%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)108.83%
Min EPS beat(2)40.05%
Max EPS beat(2)177.6%
EPS beat(4)3
Avg EPS beat(4)42.59%
Min EPS beat(4)-72.97%
Max EPS beat(4)177.6%
EPS beat(8)4
Avg EPS beat(8)19.19%
EPS beat(12)7
Avg EPS beat(12)10.58%
EPS beat(16)9
Avg EPS beat(16)-1.72%
Revenue beat(2)0
Avg Revenue beat(2)-4.56%
Min Revenue beat(2)-4.97%
Max Revenue beat(2)-4.15%
Revenue beat(4)0
Avg Revenue beat(4)-6.25%
Min Revenue beat(4)-10.43%
Max Revenue beat(4)-4.15%
Revenue beat(8)3
Avg Revenue beat(8)-1.58%
Revenue beat(12)5
Avg Revenue beat(12)-0.2%
Revenue beat(16)9
Avg Revenue beat(16)4.49%
PT rev (1m)3.89%
PT rev (3m)8%
EPS NQ rev (1m)18.45%
EPS NQ rev (3m)33.38%
EPS NY rev (1m)6.2%
EPS NY rev (3m)10.22%
Revenue NQ rev (1m)-3.48%
Revenue NQ rev (3m)4.36%
Revenue NY rev (1m)1.79%
Revenue NY rev (3m)4.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 16.88 | ||
| P/S | 0.96 | ||
| P/FCF | 17.13 | ||
| P/OCF | 6.16 | ||
| P/B | 1.7 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 6.06 |
EPS(TTM)1.71
EY6.68%
EPS(NY)1.52
Fwd EY5.93%
FCF(TTM)1.49
FCFY5.84%
OCF(TTM)4.15
OCFY16.23%
SpS26.75
BVpS15.01
TBVpS13.46
PEG (NY)1.26
PEG (5Y)0.44
Graham Number24.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.83% | ||
| ROE | 11% | ||
| ROCE | 8.93% | ||
| ROIC | 7.09% | ||
| ROICexc | 7.38% | ||
| ROICexgc | 7.88% | ||
| OM | 8.46% | ||
| PM (TTM) | 6.17% | ||
| GM | 33.16% | ||
| FCFM | 5.59% |
ROA(3y)8.18%
ROA(5y)3.66%
ROE(3y)15.96%
ROE(5y)7.2%
ROIC(3y)11.92%
ROIC(5y)N/A
ROICexc(3y)12.89%
ROICexc(5y)N/A
ROICexgc(3y)13.8%
ROICexgc(5y)N/A
ROCE(3y)15.07%
ROCE(5y)N/A
ROICexgc growth 3Y-0.51%
ROICexgc growth 5Y16.37%
ROICexc growth 3Y0.11%
ROICexc growth 5Y16.58%
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%
F-Score5
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.55 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 99.6% | ||
| Cap/Sales | 9.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.18% | ||
| Profit Quality | 90.48% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 2.77 |
F-Score5
WACC7.46%
ROIC/WACC0.95
Cap/Depr(3y)91.58%
Cap/Depr(5y)68.62%
Cap/Sales(3y)7.67%
Cap/Sales(5y)7.01%
Profit Quality(3y)110.56%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-12.76%
EPS 3Y87.2%
EPS 5Y33.97%
EPS Q2Q%71.43%
EPS Next Y11.84%
EPS Next 2Y-3.84%
EPS Next 3Y10.24%
EPS Next 5Y26.68%
Revenue 1Y (TTM)-9.17%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-7.4%
Revenue Next Year-8%
Revenue Next 2Y-8.96%
Revenue Next 3Y-8.1%
Revenue Next 5YN/A
EBIT growth 1Y-20.33%
EBIT growth 3Y1.79%
EBIT growth 5Y24.73%
EBIT Next Year84.92%
EBIT Next 3Y26.67%
EBIT Next 5Y19.1%
FCF growth 1Y-6.18%
FCF growth 3Y7.94%
FCF growth 5Y14.96%
OCF growth 1Y5.9%
OCF growth 3Y15.98%
OCF growth 5Y22.96%
CENOVUS ENERGY INC / CVE.CA FAQ
What is the fundamental rating for CVE stock?
ChartMill assigns a fundamental rating of 6 / 10 to CVE.CA.
What is the valuation status for CVE stock?
ChartMill assigns a valuation rating of 6 / 10 to CENOVUS ENERGY INC (CVE.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for CENOVUS ENERGY INC?
CENOVUS ENERGY INC (CVE.CA) has a profitability rating of 7 / 10.
What is the valuation of CENOVUS ENERGY INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CENOVUS ENERGY INC (CVE.CA) is 14.96 and the Price/Book (PB) ratio is 1.7.
What is the financial health of CENOVUS ENERGY INC (CVE.CA) stock?
The financial health rating of CENOVUS ENERGY INC (CVE.CA) is 6 / 10.