CENOVUS ENERGY INC (CVE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CVE - CA15135U1093 - Common Stock
24.76 CAD
+0.09 (+0.36%)
Overall CVE gets a fundamental rating of 6 out of 10. We evaluated CVE against 215 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
CVE had positive earnings in the past year.
CVE had a positive operating cash flow in the past year.
Of the past 5 years CVE 4 years were profitable.
CVE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CVE's Return On Assets of 5.83% is amongst the best of the industry. CVE outperforms 87.44% of its industry peers.
CVE has a Return On Equity of 11.00%. This is amongst the best in the industry. CVE outperforms 82.33% of its industry peers.
CVE has a Return On Invested Capital of 7.09%. This is amongst the best in the industry. CVE outperforms 82.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CVE is significantly above the industry average of 6.62%.
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
Looking at the Profit Margin, with a value of 6.17%, CVE is in line with its industry, outperforming 57.21% of the companies in the same industry.
In the last couple of years the Profit Margin of CVE has declined.
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.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CVE is creating some value.
Compared to 1 year ago, CVE has less shares outstanding
The number of shares outstanding for CVE has been increased compared to 5 years ago.
Compared to 1 year ago, CVE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.67 indicates that CVE is not a great score, but indicates only limited risk for bankruptcy at the moment.
CVE has a Altman-Z score of 2.67. This is in the better half of the industry: CVE outperforms 78.14% 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.
With an excellent Debt to FCF ratio value of 3.55, CVE belongs to the best of the industry, outperforming 84.65% of the companies in the same industry.
CVE has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
CVE has a Debt to Equity ratio (0.34) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 2.67 |
ROIC/WACC0.95
WACC7.47%
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's Current ratio of 1.73 is fine compared to the rest of the industry. CVE outperforms 77.67% of its industry peers.
A Quick Ratio of 1.18 indicates that CVE should not have too much problems paying its short term obligations.
The Quick ratio of CVE (1.18) is better than 70.23% 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.
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
The Earnings Per Share is expected to grow by 23.27% on average over the next years. This is a very strong growth
Based on estimates for the next years, CVE will show a decrease in Revenue. The Revenue will decrease by -3.51% on average per year.
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.
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
With a Price/Earnings ratio of 14.48, CVE is valued correctly.
CVE's Price/Earnings ratio is a bit cheaper when compared to the industry. CVE is cheaper than 66.98% 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 26.15.
Based on the Price/Forward Earnings ratio of 15.48, the valuation of CVE can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CVE is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 36.12. CVE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.48 | ||
| Fwd PE | 15.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVE is valued cheaper than 86.51% 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 67.44% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.67 | ||
| EV/EBITDA | 5.6 |
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.
A more expensive valuation may be justified as CVE's earnings are expected to grow with 14.64% in the coming years.
PEG (NY)2.04
PEG (5Y)0.43
EPS Next 2Y-1.25%
EPS Next 3Y14.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.10%, CVE has a reasonable but not impressive dividend return.
CVE's Dividend Yield is a higher than the industry average which is at 5.81.
CVE's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
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.
CVE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP45.02%
EPS Next 2Y-1.25%
EPS Next 3Y14.64%
TSX:CVE (11/27/2025, 7:00:00 PM)
24.76
+0.09 (+0.36%)
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 Cap44.25B
Revenue(TTM)50.56B
Net Income(TTM)3.12B
Analysts80.95
Price Target28.41 (14.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
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)24.36%
EPS NQ rev (3m)40.04%
EPS NY rev (1m)1.68%
EPS NY rev (3m)5.53%
Revenue NQ rev (1m)-3.48%
Revenue NQ rev (3m)4.36%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.48 | ||
| Fwd PE | 15.48 | ||
| P/S | 0.88 | ||
| P/FCF | 15.67 | ||
| P/OCF | 5.64 | ||
| P/B | 1.56 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 5.6 |
EPS(TTM)1.71
EY6.91%
EPS(NY)1.6
Fwd EY6.46%
FCF(TTM)1.58
FCFY6.38%
OCF(TTM)4.39
OCFY17.74%
SpS28.29
BVpS15.88
TBVpS14.24
PEG (NY)2.04
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 | 2.67 |
F-Score5
WACC7.47%
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 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 14.48 and the Price/Book (PB) ratio is 1.56.
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.