CENOVUS ENERGY INC (CVE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CVE - CA15135U1093 - Common Stock
25.2 CAD
0 (0%)
CVE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 215 industry peers in the Oil, Gas & Consumable Fuels industry. CVE scores excellent on profitability, 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 has a Return On Assets of 5.83%. This is amongst the best in the industry. CVE outperforms 87.44% of its industry peers.
CVE has a better Return On Equity (11.00%) than 82.33% of its industry peers.
The Return On Invested Capital of CVE (7.09%) is better than 82.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CVE is significantly above the industry average of 6.62%.
The 3 year average ROIC (11.92%) for CVE is well above the current ROIC(7.09%). The reason for the recent decline needs to be investigated.
| 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
The Profit Margin of CVE (6.17%) is comparable to the rest of the industry.
CVE's Profit Margin has declined in the last couple of years.
CVE has a Operating Margin of 8.46%. This is comparable to the rest of the industry: CVE outperforms 52.56% of its industry peers.
In the last couple of years the Operating Margin of CVE has grown nicely.
CVE's Gross Margin of 33.16% is in line compared to the rest of the industry. CVE outperforms 52.09% of its industry peers.
In the last couple of years the Gross Margin of CVE has declined.
| 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.
CVE has less shares outstanding than it did 1 year ago.
CVE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CVE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.69 indicates that CVE is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.69, CVE is doing good in the industry, outperforming 78.14% of the companies in the same industry.
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.
A Debt/Equity ratio of 0.34 indicates that CVE is not too dependend on debt financing.
CVE has a Debt to Equity ratio of 0.34. This is comparable to the rest of the industry: CVE outperforms 57.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 2.69 |
ROIC/WACC0.95
WACC7.45%
2.3 Liquidity
A Current Ratio of 1.73 indicates that CVE should not have too much problems paying its short term obligations.
CVE has a better Current ratio (1.73) than 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.
CVE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.97% yearly.
CVE shows a decrease in Revenue. In the last year, the revenue decreased by -9.17%.
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)-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
Based on estimates for the next years, CVE will show a very strong growth in Earnings Per Share. The EPS will grow by 23.27% on average per year.
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
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
A Price/Earnings ratio of 14.74 indicates a correct valuation of CVE.
Based on the Price/Earnings ratio, CVE is valued a bit cheaper than the industry average as 66.98% of the companies are valued more expensively.
CVE is valuated rather cheaply when we compare the Price/Earnings ratio to 25.65, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.76, CVE is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as CVE.
CVE is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.45, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.74 | ||
| Fwd PE | 15.76 |
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.
CVE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CVE is cheaper than 67.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.95 | ||
| EV/EBITDA | 5.7 |
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)2.08
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 3.10%.
Compared to an average industry Dividend Yield of 5.81, CVE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, CVE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
5.2 History
On average, the dividend of CVE grows each year by 31.72%, which is quite nice.
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.
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 (11/24/2025, 7:00:00 PM)
25.2
0 (0%)
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 Target28.41 (12.74%)
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 | 14.74 | ||
| 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 | 5.7 |
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 | 2.69 |
F-Score5
WACC7.45%
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 14.74 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.