CENOVUS ENERGY INC (CVE.CA) Stock Fundamental Analysis
Canada - TSX:CVE - CA15135U1093 - Common Stock
24.02 CAD
-0.15 (-0.62%)
Overall CVE gets a fundamental rating of 5 out of 10. We evaluated CVE against 216 industry peers in the Oil, Gas & Consumable Fuels industry. CVE has an average financial health and profitability rating. CVE is not valued too expensively and it also shows a decent 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
CVE's Return On Assets of 4.74% is fine compared to the rest of the industry. CVE outperforms 77.31% of its industry peers.
CVE has a better Return On Equity (9.01%) than 63.89% of its industry peers.
With a decent Return On Invested Capital value of 6.17%, CVE is doing good in the industry, outperforming 76.39% 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 above the industry average of 6.93%.
The last Return On Invested Capital (6.17%) 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 | 4.74% | ||
| ROE | 9.01% | ||
| ROIC | 6.17% |
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 5.13%. This is comparable to the rest of the industry: CVE outperforms 55.09% of its industry peers.
In the last couple of years the Profit Margin of CVE has declined.
Looking at the Operating Margin, with a value of 7.37%, CVE is in line with its industry, outperforming 49.54% of the companies in the same industry.
In the last couple of years the Operating Margin of CVE has grown nicely.
CVE has a Gross Margin (31.62%) which 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 | 7.37% | ||
| PM (TTM) | 5.13% | ||
| GM | 31.62% |
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
CVE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for CVE is higher compared to a year ago.
2.2 Solvency
CVE has an Altman-Z score of 2.47. 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.
The Altman-Z score of CVE (2.47) is better than 75.00% of its industry peers.
The Debt to FCF ratio of CVE is 3.52, which is a good value as it means it would take CVE, 3.52 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.52, CVE belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
A Debt/Equity ratio of 0.34 indicates that CVE is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.34, CVE perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 2.47 |
ROIC/WACC0.79
WACC7.78%
2.3 Liquidity
A Current Ratio of 1.32 indicates that CVE should not have too much problems paying its short term obligations.
CVE has a Current ratio of 1.32. This is in the better half of the industry: CVE outperforms 68.52% of its industry peers.
A Quick Ratio of 0.78 indicates that CVE may have some problems paying its short term obligations.
The Quick ratio of CVE (0.78) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The earnings per share for CVE have decreased strongly by -43.82% 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 -7.82% 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)-43.82%
EPS 3Y87.2%
EPS 5Y33.97%
EPS Q2Q%-15.09%
Revenue 1Y (TTM)-7.82%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-17.24%
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
CVE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.67% yearly.
EPS Next Y1.47%
EPS Next 2Y-1.08%
EPS Next 3Y15.87%
EPS Next 5Y23.27%
Revenue Next Year-8.75%
Revenue Next 2Y-6.1%
Revenue Next 3Y-4.67%
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
Based on the Price/Earnings ratio of 17.04, the valuation of CVE can be described as rather expensive.
CVE's Price/Earnings ratio is a bit cheaper when compared to the industry. CVE is cheaper than 62.04% of the companies in the same industry.
When comparing the Price/Earnings ratio of CVE to the average of the S&P500 Index (27.41), we can say CVE is valued slightly cheaper.
CVE is valuated correctly with a Price/Forward Earnings ratio of 14.97.
60.19% of the companies in the same industry are more expensive than CVE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CVE to the average of the S&P500 Index (22.88), we can say CVE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.04 | ||
| Fwd PE | 14.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVE is valued cheaply inside the industry as 81.94% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CVE is valued a bit cheaper than the industry average as 67.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.52 | ||
| EV/EBITDA | 5.82 |
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.
CVE's earnings are expected to grow with 15.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)11.62
PEG (5Y)0.5
EPS Next 2Y-1.08%
EPS Next 3Y15.87%
5. Dividend
5.1 Amount
CVE has a Yearly Dividend Yield of 3.42%. Purely for dividend investing, there may be better candidates out there.
CVE's Dividend Yield is a higher than the industry average which is at 5.90.
Compared to an average S&P500 Dividend Yield of 2.38, CVE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
5.2 History
The dividend of CVE is nicely growing with an annual growth rate of 31.72%!
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 52.38% 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.
DP52.38%
EPS Next 2Y-1.08%
EPS Next 3Y15.87%
TSX:CVE (9/17/2025, 7:00:00 PM)
24.02
-0.15 (-0.62%)
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 Cap43.20B
Analysts80
Price Target27.35 (13.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
Yearly Dividend0.84
Dividend Growth(5Y)31.72%
DP52.38%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)101.63%
Min EPS beat(2)25.67%
Max EPS beat(2)177.6%
EPS beat(4)2
Avg EPS beat(4)31.19%
Min EPS beat(4)-72.97%
Max EPS beat(4)177.6%
EPS beat(8)4
Avg EPS beat(8)15.06%
EPS beat(12)6
Avg EPS beat(12)3.89%
EPS beat(16)8
Avg EPS beat(16)-6.48%
Revenue beat(2)0
Avg Revenue beat(2)-4.79%
Min Revenue beat(2)-5.43%
Max Revenue beat(2)-4.15%
Revenue beat(4)1
Avg Revenue beat(4)-4.06%
Min Revenue beat(4)-10.43%
Max Revenue beat(4)3.8%
Revenue beat(8)4
Avg Revenue beat(8)-0.2%
Revenue beat(12)6
Avg Revenue beat(12)3.13%
Revenue beat(16)10
Avg Revenue beat(16)5.12%
PT rev (1m)4.2%
PT rev (3m)3.91%
EPS NQ rev (1m)-0.83%
EPS NQ rev (3m)-28.65%
EPS NY rev (1m)-4.83%
EPS NY rev (3m)-4.83%
Revenue NQ rev (1m)4%
Revenue NQ rev (3m)-5.86%
Revenue NY rev (1m)3.32%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.04 | ||
| Fwd PE | 14.97 | ||
| P/S | 0.84 | ||
| P/FCF | 14.52 | ||
| P/OCF | 5.27 | ||
| P/B | 1.47 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 5.82 |
EPS(TTM)1.41
EY5.87%
EPS(NY)1.6
Fwd EY6.68%
FCF(TTM)1.65
FCFY6.89%
OCF(TTM)4.55
OCFY18.96%
SpS28.7
BVpS16.35
TBVpS14.72
PEG (NY)11.62
PEG (5Y)0.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 9.01% | ||
| ROCE | 7.82% | ||
| ROIC | 6.17% | ||
| ROICexc | 6.51% | ||
| ROICexgc | 6.95% | ||
| OM | 7.37% | ||
| PM (TTM) | 5.13% | ||
| GM | 31.62% | ||
| FCFM | 5.76% |
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 Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.52 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 105.59% | ||
| Cap/Sales | 10.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 93.66% | ||
| Profit Quality | 112.35% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 2.47 |
F-Score4
WACC7.78%
ROIC/WACC0.79
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)-43.82%
EPS 3Y87.2%
EPS 5Y33.97%
EPS Q2Q%-15.09%
EPS Next Y1.47%
EPS Next 2Y-1.08%
EPS Next 3Y15.87%
EPS Next 5Y23.27%
Revenue 1Y (TTM)-7.82%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-17.24%
Revenue Next Year-8.75%
Revenue Next 2Y-6.1%
Revenue Next 3Y-4.67%
Revenue Next 5YN/A
EBIT growth 1Y-45.73%
EBIT growth 3Y1.79%
EBIT growth 5Y24.73%
EBIT Next Year96.04%
EBIT Next 3Y23.1%
EBIT Next 5Y17.42%
FCF growth 1Y-34.2%
FCF growth 3Y7.94%
FCF growth 5Y14.96%
OCF growth 1Y-6.52%
OCF growth 3Y15.98%
OCF growth 5Y22.96%