CENOVUS ENERGY INC (CVE.CA) Stock Fundamental Analysis
Canada - TSX:CVE - CA15135U1093 - Common Stock
25.2 CAD
+0.17 (+0.68%)
Taking everything into account, CVE scores 6 out of 10 in our fundamental rating. CVE was compared to 212 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 is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years CVE had a positive operating cash flow.
1.2 Ratios
CVE's Return On Assets of 5.83% is amongst the best of the industry. CVE outperforms 85.85% of its industry peers.
CVE's Return On Equity of 11.00% is amongst the best of the industry. CVE outperforms 80.66% of its industry peers.
The Return On Invested Capital of CVE (7.09%) is better than 80.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CVE is significantly above the industry average of 6.73%.
The last Return On Invested Capital (7.09%) 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 | 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's Profit Margin of 6.17% is in line compared to the rest of the industry. CVE outperforms 55.66% of its industry peers.
In the last couple of years the Profit Margin of CVE has declined.
CVE has a Operating Margin of 8.46%. This is comparable to the rest of the industry: CVE outperforms 50.94% of its industry peers.
CVE's Operating Margin has improved in the last couple of years.
The Gross Margin of CVE (33.16%) is comparable to the rest of the industry.
CVE's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CVE is still 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.
CVE has a worse debt/assets ratio than last year.
2.2 Solvency
CVE has an Altman-Z score of 2.70. 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's Altman-Z score of 2.70 is fine compared to the rest of the industry. CVE outperforms 77.36% of its industry peers.
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 83.96% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that CVE is not too dependend on debt financing.
CVE has a Debt to Equity ratio (0.34) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 2.7 |
ROIC/WACC0.94
WACC7.56%
2.3 Liquidity
A Current Ratio of 1.73 indicates that CVE should not have too much problems paying its short term obligations.
CVE's Current ratio of 1.73 is fine compared to the rest of the industry. CVE outperforms 75.94% of its industry peers.
A Quick Ratio of 1.18 indicates that CVE should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.18, CVE is doing good in the industry, outperforming 68.87% 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%.
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.
CVE 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
CVE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.27% yearly.
The Revenue is expected to decrease by -3.51% on average over the next years.
EPS Next Y7.08%
EPS Next 2Y-1.25%
EPS Next 3Y14.64%
EPS Next 5Y23.27%
Revenue Next Year-8.83%
Revenue Next 2Y-5.31%
Revenue Next 3Y-3.51%
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 14.74, the valuation of CVE can be described as correct.
CVE's Price/Earnings ratio is a bit cheaper when compared to the industry. CVE is cheaper than 65.09% of the companies in the same industry.
CVE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.56.
The Price/Forward Earnings ratio is 15.76, which indicates a correct valuation of CVE.
CVE's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.62, CVE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.74 | ||
| Fwd PE | 15.76 |
4.2 Price Multiples
CVE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CVE is cheaper than 84.91% of the companies 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 65.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.95 | ||
| EV/EBITDA | 5.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CVE does not grow enough to justify the current Price/Earnings ratio.
CVE has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CVE's earnings are expected to grow with 14.64% in the coming years.
PEG (NY)2.08
PEG (5Y)0.43
EPS Next 2Y-1.25%
EPS Next 3Y14.64%
5. Dividend
5.1 Amount
CVE has a Yearly Dividend Yield of 3.20%.
Compared to an average industry Dividend Yield of 5.31, CVE pays a bit more dividend than its industry peers.
CVE's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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
CVE pays out 45.02% of its income as dividend. 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-1.25%
EPS Next 3Y14.64%
TSX:CVE (11/17/2025, 7:00:00 PM)
25.2
+0.17 (+0.68%)
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 Cap45.04B
Revenue(TTM)50.56B
Net Income(TTM)3.12B
Analysts80.95
Price Target28.06 (11.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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)2.61%
PT rev (3m)6.93%
EPS NQ rev (1m)-9.76%
EPS NQ rev (3m)-24.69%
EPS NY rev (1m)8.57%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)-3.58%
Revenue NQ rev (3m)8.13%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)3.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.74 | ||
| Fwd PE | 15.76 | ||
| P/S | 0.89 | ||
| P/FCF | 15.95 | ||
| P/OCF | 5.74 | ||
| P/B | 1.59 | ||
| P/tB | 1.77 | ||
| EV/EBITDA | 5.74 |
EPS(TTM)1.71
EY6.79%
EPS(NY)1.6
Fwd EY6.35%
FCF(TTM)1.58
FCFY6.27%
OCF(TTM)4.39
OCFY17.43%
SpS28.29
BVpS15.88
TBVpS14.24
PEG (NY)2.08
PEG (5Y)0.43
Graham Number24.71
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 | 2.7 |
F-Score5
WACC7.56%
ROIC/WACC0.94
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 Y7.08%
EPS Next 2Y-1.25%
EPS Next 3Y14.64%
EPS Next 5Y23.27%
Revenue 1Y (TTM)-9.17%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-7.4%
Revenue Next Year-8.83%
Revenue Next 2Y-5.31%
Revenue Next 3Y-3.51%
Revenue Next 5YN/A
EBIT growth 1Y-20.33%
EBIT growth 3Y1.79%
EBIT growth 5Y24.73%
EBIT Next Year100.67%
EBIT Next 3Y28.05%
EBIT Next 5Y20.73%
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 5 / 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 14.74 and the Price/Book (PB) ratio is 1.59.
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.