CENOVUS ENERGY INC (CVE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CVE - CA15135U1093 - Common Stock
24.86 CAD
-0.49 (-1.93%)
We assign a fundamental rating of 6 out of 10 to CVE. CVE was compared to 218 industry peers in the Oil, Gas & Consumable Fuels industry. CVE has an excellent profitability rating, but 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
In the past year CVE was profitable.
CVE had a positive operating cash flow in the past year.
Of the past 5 years CVE 4 years were profitable.
Each year in the past 5 years CVE had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 5.83%, CVE belongs to the best of the industry, outperforming 86.70% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.00%, CVE belongs to the top of the industry, outperforming 81.65% of the companies in the same industry.
The Return On Invested Capital of CVE (7.09%) is better than 83.03% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CVE 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 58.72% of its industry peers.
CVE's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 8.46%, CVE is in line with its industry, outperforming 53.67% of the companies in the same industry.
In the last couple of years the Operating Margin of CVE has grown nicely.
Looking at the Gross Margin, with a value of 33.16%, CVE is in line with its industry, outperforming 52.75% 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.
The number of shares outstanding for CVE has been increased compared to 5 years ago.
CVE has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.76 indicates that CVE is not a great score, but indicates only limited risk for bankruptcy at the moment.
CVE has a better Altman-Z score (2.76) than 77.98% of its industry peers.
CVE has a debt to FCF ratio of 3.55. This is a good value and a sign of high solvency as CVE would need 3.55 years to pay back of all of its debts.
CVE's Debt to FCF ratio of 3.55 is amongst the best of the industry. CVE outperforms 84.86% of its industry peers.
CVE has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
CVE's Debt to Equity ratio of 0.34 is in line compared to the rest of the industry. CVE outperforms 57.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 2.76 |
ROIC/WACC0.96
WACC7.38%
2.3 Liquidity
A Current Ratio of 1.73 indicates that CVE should not have too much problems paying its short term obligations.
CVE has a Current ratio of 1.73. This is in the better half of the industry: CVE outperforms 75.23% of its industry peers.
CVE has a Quick Ratio of 1.18. This is a normal value and indicates that CVE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.18, CVE is in the better half of the industry, outperforming 68.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
CVE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.76%.
The Earnings Per Share has been growing by 33.97% on average over the past years. This is a very strong growth
CVE shows a decrease in Revenue. In the last year, the revenue decreased by -9.17%.
The Revenue has been growing by 21.88% on average over the past years. This is a very strong growth!
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
CVE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.68% yearly.
The Revenue is expected to decrease by -4.91% on average over the next years.
EPS Next Y27.31%
EPS Next 2Y1.31%
EPS Next 3Y11.15%
EPS Next 5Y26.68%
Revenue Next Year-9.83%
Revenue Next 2Y-8.59%
Revenue Next 3Y-4.91%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
Based on the Price/Earnings ratio of 14.54, the valuation of CVE can be described as correct.
Based on the Price/Earnings ratio, CVE is valued a bit cheaper than the industry average as 66.51% of the companies are valued more expensively.
CVE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.34.
CVE is valuated correctly with a Price/Forward Earnings ratio of 14.77.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CVE indicates a somewhat cheap valuation: CVE is cheaper than 63.76% of the companies listed in the same industry.
CVE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.54 | ||
| Fwd PE | 14.77 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CVE indicates a rather cheap valuation: CVE is cheaper than 85.32% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CVE indicates a somewhat cheap valuation: CVE is cheaper than 66.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.64 | ||
| EV/EBITDA | 6.01 |
4.3 Compensation for Growth
CVE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CVE may justify a higher PE ratio.
PEG (NY)0.53
PEG (5Y)0.43
EPS Next 2Y1.31%
EPS Next 3Y11.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.08%, CVE has a reasonable but not impressive dividend return.
CVE's Dividend Yield is a higher than the industry average which is at 6.83.
Compared to an average S&P500 Dividend Yield of 2.31, CVE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
5.2 History
On average, the dividend of CVE grows each year by 31.72%, which is quite nice.
CVE has paid a dividend for at least 10 years, which is 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
CVE pays out 45.02% of its income as dividend. This is a bit on the high side, but may be sustainable.
CVE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP45.02%
EPS Next 2Y1.31%
EPS Next 3Y11.15%
TSX:CVE (12/8/2025, 7:00:00 PM)
24.86
-0.49 (-1.93%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners53.06%
Inst Owner ChangeN/A
Ins Owners0.63%
Ins Owner ChangeN/A
Market Cap46.99B
Revenue(TTM)50.56B
Net Income(TTM)3.12B
Analysts80
Price Target29.59 (19.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
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)5.45%
PT rev (3m)8.66%
EPS NQ rev (1m)14.61%
EPS NQ rev (3m)29.06%
EPS NY rev (1m)33.63%
EPS NY rev (3m)25.47%
Revenue NQ rev (1m)-3.48%
Revenue NQ rev (3m)4.36%
Revenue NY rev (1m)-2.3%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.54 | ||
| Fwd PE | 14.77 | ||
| P/S | 0.93 | ||
| P/FCF | 16.64 | ||
| P/OCF | 5.99 | ||
| P/B | 1.66 | ||
| P/tB | 1.85 | ||
| EV/EBITDA | 6.01 |
EPS(TTM)1.71
EY6.88%
EPS(NY)1.68
Fwd EY6.77%
FCF(TTM)1.49
FCFY6.01%
OCF(TTM)4.15
OCFY16.7%
SpS26.75
BVpS15.01
TBVpS13.46
PEG (NY)0.53
PEG (5Y)0.43
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 | 2.76 |
F-Score5
WACC7.38%
ROIC/WACC0.96
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 Y27.31%
EPS Next 2Y1.31%
EPS Next 3Y11.15%
EPS Next 5Y26.68%
Revenue 1Y (TTM)-9.17%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-7.4%
Revenue Next Year-9.83%
Revenue Next 2Y-8.59%
Revenue Next 3Y-4.91%
Revenue Next 5YN/A
EBIT growth 1Y-20.33%
EBIT growth 3Y1.79%
EBIT growth 5Y24.73%
EBIT Next Year101.69%
EBIT Next 3Y30.19%
EBIT Next 5Y21.02%
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 14.54 and the Price/Book (PB) ratio is 1.66.
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.