CENOVUS ENERGY INC (CVE.CA) Stock Fundamental Analysis
TSX:CVE - Toronto Stock Exchange - CA15135U1093 - Common Stock - Currency: CAD
Overall CVE gets a fundamental rating of 6 out of 10. We evaluated CVE against 207 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of CVE get a neutral evaluation. Nothing too spectacular is happening here. CVE is not valued too expensively and it also shows a decent growth rate. Finally CVE also has an excellent dividend rating. These ratings would make CVE suitable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year CVE was profitable.
In the past year CVE had a positive cash flow from operations.
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 a decent Return On Assets value of 4.95%, CVE is doing good in the industry, outperforming 78.74% of the companies in the same industry.
CVE's Return On Equity of 9.30% is fine compared to the rest of the industry. CVE outperforms 74.40% of its industry peers.
The Return On Invested Capital of CVE (7.38%) is better than 78.26% of its industry peers.
CVE had an Average Return On Invested Capital over the past 3 years of 11.92%. This is above the industry average of 7.39%.
The last Return On Invested Capital (7.38%) for CVE is well below the 3 year average (11.92%), which needs to be investigated, but indicates that CVE had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 9.3% | ||
| ROIC | 7.38% |
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 5.15%. This is comparable to the rest of the industry: CVE outperforms 59.42% of its industry peers.
CVE's Profit Margin has declined in the last couple of years.
CVE's Operating Margin of 8.54% is in line compared to the rest of the industry. CVE outperforms 53.62% of its industry peers.
In the last couple of years the Operating Margin of CVE has grown nicely.
CVE has a Gross Margin of 32.07%. This is comparable to the rest of the industry: CVE outperforms 52.17% of its industry peers.
CVE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.54% | ||
| PM (TTM) | 5.15% | ||
| GM | 32.07% |
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.
Compared to 5 years ago, CVE has more shares outstanding
CVE has a worse debt/assets ratio than last year.
2.2 Solvency
CVE has an Altman-Z score of 2.40. 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.
CVE has a better Altman-Z score (2.40) than 74.88% of its industry peers.
The Debt to FCF ratio of CVE is 3.53, which is a good value as it means it would take CVE, 3.53 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CVE (3.53) is better than 79.71% 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 57.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 2.4 |
ROIC/WACC0.91
WACC8.07%
2.3 Liquidity
A Current Ratio of 1.46 indicates that CVE should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.46, CVE is doing good in the industry, outperforming 73.43% of the companies in the same industry.
A Quick Ratio of 0.84 indicates that CVE may have some problems paying its short term obligations.
CVE has a Quick ratio of 0.84. This is in the better half of the industry: CVE outperforms 63.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The earnings per share for CVE have decreased strongly by -38.43% in the last year.
The Earnings Per Share has been growing by 33.97% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 1.57% in the past year.
CVE shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.88% yearly.
EPS 1Y (TTM)-38.43%
EPS 3Y87.2%
EPS 5Y33.97%
EPS Q2Q%-24.19%
Revenue 1Y (TTM)1.57%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-0.73%
3.2 Future
CVE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.52% yearly.
Based on estimates for the next years, CVE will show a decrease in Revenue. The Revenue will decrease by -5.74% on average per year.
EPS Next Y6.62%
EPS Next 2Y18.58%
EPS Next 3Y19.52%
EPS Next 5YN/A
Revenue Next Year-8.98%
Revenue Next 2Y-4.96%
Revenue Next 3Y-5.74%
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.
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
CVE is valuated correctly with a Price/Earnings ratio of 13.46.
Based on the Price/Earnings ratio, CVE is valued a bit cheaper than 64.73% of the companies in the same industry.
CVE is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.70 indicates a reasonable valuation of CVE.
CVE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CVE is cheaper than 66.18% of the companies in the same industry.
CVE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.46 | ||
| Fwd PE | 8.7 |
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 85.99% of the companies listed in the same industry.
CVE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CVE is cheaper than 71.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.89 | ||
| EV/EBITDA | 4.57 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of CVE may justify a higher PE ratio.
CVE's earnings are expected to grow with 19.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.03
PEG (5Y)0.4
EPS Next 2Y18.58%
EPS Next 3Y19.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.07%, CVE is a good candidate for dividend investing.
CVE's Dividend Yield is a higher than the industry average which is at 6.26.
CVE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
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
57.77% 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.
DP57.77%
EPS Next 2Y18.58%
EPS Next 3Y19.52%
TSX:CVE (7/11/2025, 7:00:00 PM)
20.06
+0.42 (+2.14%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners52.31%
Inst Owner ChangeN/A
Ins Owners0.66%
Ins Owner ChangeN/A
Market Cap36.29B
Analysts79.09
Price Target26.41 (31.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
Yearly Dividend0.84
Dividend Growth(5Y)31.72%
DP57.77%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-23.65%
Min EPS beat(2)-72.97%
Max EPS beat(2)25.67%
EPS beat(4)1
Avg EPS beat(4)-18.6%
Min EPS beat(4)-72.97%
Max EPS beat(4)25.67%
EPS beat(8)4
Avg EPS beat(8)-6.58%
EPS beat(12)6
Avg EPS beat(12)-10.49%
EPS beat(16)7
Avg EPS beat(16)-21.6%
Revenue beat(2)0
Avg Revenue beat(2)-7.93%
Min Revenue beat(2)-10.43%
Max Revenue beat(2)-5.43%
Revenue beat(4)2
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-10.43%
Max Revenue beat(4)9.24%
Revenue beat(8)4
Avg Revenue beat(8)-0.09%
Revenue beat(12)7
Avg Revenue beat(12)5.76%
Revenue beat(16)11
Avg Revenue beat(16)6.01%
PT rev (1m)0.34%
PT rev (3m)-10.32%
EPS NQ rev (1m)-11.21%
EPS NQ rev (3m)-41.38%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.42%
Revenue NQ rev (1m)-1.94%
Revenue NQ rev (3m)-1.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.46 | ||
| Fwd PE | 8.7 | ||
| P/S | 0.67 | ||
| P/FCF | 11.89 | ||
| P/OCF | 4.39 | ||
| P/B | 1.21 | ||
| P/tB | 1.34 | ||
| EV/EBITDA | 4.57 |
EPS(TTM)1.49
EY7.43%
EPS(NY)2.31
Fwd EY11.5%
FCF(TTM)1.69
FCFY8.41%
OCF(TTM)4.57
OCFY22.76%
SpS29.94
BVpS16.6
TBVpS14.98
PEG (NY)2.03
PEG (5Y)0.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 9.3% | ||
| ROCE | 9.36% | ||
| ROIC | 7.38% | ||
| ROICexc | 7.81% | ||
| ROICexgc | 8.33% | ||
| OM | 8.54% | ||
| PM (TTM) | 5.15% | ||
| GM | 32.07% | ||
| FCFM | 5.64% |
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
ROICexcg growth 3Y-0.51%
ROICexcg 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-Score4
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.53 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 104.37% | ||
| Cap/Sales | 9.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.89% | ||
| Profit Quality | 109.35% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 2.4 |
F-Score4
WACC8.07%
ROIC/WACC0.91
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)-38.43%
EPS 3Y87.2%
EPS 5Y33.97%
EPS Q2Q%-24.19%
EPS Next Y6.62%
EPS Next 2Y18.58%
EPS Next 3Y19.52%
EPS Next 5YN/A
Revenue 1Y (TTM)1.57%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-0.73%
Revenue Next Year-8.98%
Revenue Next 2Y-4.96%
Revenue Next 3Y-5.74%
Revenue Next 5YN/A
EBIT growth 1Y-29.74%
EBIT growth 3Y1.79%
EBIT growth 5Y24.73%
EBIT Next Year96.04%
EBIT Next 3Y23.1%
EBIT Next 5Y16.96%
FCF growth 1Y-46.33%
FCF growth 3Y7.94%
FCF growth 5Y14.96%
OCF growth 1Y-15.29%
OCF growth 3Y15.98%
OCF growth 5Y22.96%