CENOVUS ENERGY INC (CVE.CA) Stock Fundamental Analysis
TSX:CVE - Toronto Stock Exchange - CA15135U1093 - Common Stock - Currency: CAD
Taking everything into account, CVE scores 6 out of 10 in our fundamental rating. CVE was compared to 221 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on CVE. This makes CVE very considerable for value investing!
1. Profitability
1.1 Basic Checks
CVE had positive earnings in the past year.
In the past year CVE had a positive cash flow from operations.
CVE had positive earnings in 4 of the past 5 years.
CVE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.49%, CVE belongs to the top of the industry, outperforming 83.71% of the companies in the same industry.
With an excellent Return On Equity value of 10.44%, CVE belongs to the best of the industry, outperforming 81.90% of the companies in the same industry.
CVE has a Return On Invested Capital of 8.18%. This is amongst the best in the industry. CVE outperforms 85.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CVE is above the industry average of 7.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 10.44% | ||
| ROIC | 8.18% |
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
The Profit Margin of CVE (5.72%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CVE has declined.
Looking at the Operating Margin, with a value of 9.37%, CVE is in line with its industry, outperforming 54.75% of the companies in the same industry.
In the last couple of years the Operating Margin of CVE has grown nicely.
CVE's Gross Margin of 32.49% is in line compared to the rest of the industry. CVE outperforms 51.58% of its industry peers.
In the last couple of years the Gross Margin of CVE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.37% | ||
| PM (TTM) | 5.72% | ||
| GM | 32.49% |
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.
The number of shares outstanding for CVE has been reduced compared to 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
An Altman-Z score of 2.33 indicates that CVE is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CVE (2.33) is better than 74.66% of its industry peers.
CVE has a debt to FCF ratio of 2.52. This is a good value and a sign of high solvency as CVE would need 2.52 years to pay back of all of its debts.
CVE's Debt to FCF ratio of 2.52 is amongst the best of the industry. CVE outperforms 85.07% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that CVE is not too dependend on debt financing.
CVE's Debt to Equity ratio of 0.34 is in line compared to the rest of the industry. CVE outperforms 54.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.52 | ||
| Altman-Z | 2.33 |
ROIC/WACC1.15
WACC7.1%
2.3 Liquidity
A Current Ratio of 1.42 indicates that CVE should not have too much problems paying its short term obligations.
CVE's Current ratio of 1.42 is fine compared to the rest of the industry. CVE outperforms 73.30% of its industry peers.
A Quick Ratio of 0.81 indicates that CVE may have some problems paying its short term obligations.
CVE has a Quick ratio of 0.81. This is in the better half of the industry: CVE outperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
CVE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.59%.
CVE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.99% yearly.
CVE shows a small growth in Revenue. In the last year, the Revenue has grown by 3.97%.
The Revenue has been growing by 21.88% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-22.59%
EPS 3Y87.24%
EPS 5Y33.99%
EPS Q2Q%-81.79%
Revenue 1Y (TTM)3.97%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-9.19%
3.2 Future
CVE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.34% yearly.
Based on estimates for the next years, CVE will show a decrease in Revenue. The Revenue will decrease by -3.42% on average per year.
EPS Next Y31.65%
EPS Next 2Y26.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-8.97%
Revenue Next 2Y-4.95%
Revenue Next 3Y-3.42%
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
With a Price/Earnings ratio of 11.15, the valuation of CVE can be described as very reasonable.
Based on the Price/Earnings ratio, CVE is valued a bit cheaper than 67.42% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, CVE is valued rather cheaply.
The Price/Forward Earnings ratio is 8.47, which indicates a very decent valuation of CVE.
Based on the Price/Forward Earnings ratio, CVE is valued a bit cheaper than 63.35% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CVE to the average of the S&P500 Index (22.10), we can say CVE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.15 | ||
| Fwd PE | 8.47 |
4.2 Price Multiples
CVE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CVE is cheaper than 84.62% of the companies in the same industry.
CVE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CVE is cheaper than 80.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.91 | ||
| EV/EBITDA | 4.09 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as CVE's earnings are expected to grow with 26.34% in the coming years.
PEG (NY)0.35
PEG (5Y)0.33
EPS Next 2Y26.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CVE has a Yearly Dividend Yield of 3.97%.
CVE's Dividend Yield is a higher than the industry average which is at 6.64.
Compared to an average S&P500 Dividend Yield of 2.33, CVE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
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 49.94% 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.
DP49.94%
EPS Next 2Y26.34%
EPS Next 3YN/A
TSX:CVE (3/7/2025, 7:00:00 PM)
18.29
+0.16 (+0.88%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners50.86%
Inst Owner ChangeN/A
Ins Owners0.81%
Ins Owner ChangeN/A
Market Cap33.36B
Analysts81.82
Price Target29.69 (62.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
Yearly Dividend0.84
Dividend Growth(5Y)31.72%
DP49.94%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-39.05%
Min EPS beat(2)-72.57%
Max EPS beat(2)-5.52%
EPS beat(4)1
Avg EPS beat(4)-21.32%
Min EPS beat(4)-72.57%
Max EPS beat(4)14.37%
EPS beat(8)4
Avg EPS beat(8)-9.42%
EPS beat(12)6
Avg EPS beat(12)-10.62%
EPS beat(16)7
Avg EPS beat(16)-22.38%
Revenue beat(2)1
Avg Revenue beat(2)-6.41%
Min Revenue beat(2)-16.62%
Max Revenue beat(2)3.8%
Revenue beat(4)2
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-16.62%
Max Revenue beat(4)9.24%
Revenue beat(8)4
Avg Revenue beat(8)-1.23%
Revenue beat(12)8
Avg Revenue beat(12)6.25%
Revenue beat(16)12
Avg Revenue beat(16)7.51%
PT rev (1m)-3.94%
PT rev (3m)-8.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13.59%
EPS NY rev (1m)3.48%
EPS NY rev (3m)9.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.82%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.15 | ||
| Fwd PE | 8.47 | ||
| P/S | 0.61 | ||
| P/FCF | 7.91 | ||
| P/OCF | 3.61 | ||
| P/B | 1.12 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 4.09 |
EPS(TTM)1.64
EY8.97%
EPS(NY)2.16
Fwd EY11.81%
FCF(TTM)2.31
FCFY12.65%
OCF(TTM)5.06
OCFY27.68%
SpS29.76
BVpS16.31
TBVpS14.71
PEG (NY)0.35
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 10.44% | ||
| ROCE | 10.34% | ||
| ROIC | 8.18% | ||
| ROICexc | 8.73% | ||
| ROICexgc | 9.31% | ||
| OM | 9.37% | ||
| PM (TTM) | 5.72% | ||
| GM | 32.49% | ||
| FCFM | 7.77% |
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-Score5
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.52 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 102.96% | ||
| Cap/Sales | 9.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.75% | ||
| Profit Quality | 135.87% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.33 |
F-Score5
WACC7.1%
ROIC/WACC1.15
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)-22.59%
EPS 3Y87.24%
EPS 5Y33.99%
EPS Q2Q%-81.79%
EPS Next Y31.65%
EPS Next 2Y26.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.97%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-9.19%
Revenue Next Year-8.97%
Revenue Next 2Y-4.95%
Revenue Next 3Y-3.42%
Revenue Next 5YN/A
EBIT growth 1Y-9.6%
EBIT growth 3Y1.79%
EBIT growth 5Y24.73%
EBIT Next Year121.01%
EBIT Next 3Y31.64%
EBIT Next 5Y23.65%
FCF growth 1Y36.57%
FCF growth 3Y7.94%
FCF growth 5Y14.96%
OCF growth 1Y25%
OCF growth 3Y15.98%
OCF growth 5Y22.96%