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CENOVUS ENERGY INC (CVE) Stock Fundamental Analysis

NYSE:CVE - New York Stock Exchange, Inc. - CA15135U1093 - Common Stock - Currency: USD

14.98  +0.87 (+6.17%)

After market: 15.06 +0.08 (+0.53%)

Fundamental Rating

4

Taking everything into account, CVE scores 4 out of 10 in our fundamental rating. CVE was compared to 212 industry peers in the Oil, Gas & Consumable Fuels industry. While CVE seems to be doing ok healthwise, there are quite some concerns on its profitability. CVE has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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3

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.
Of the past 5 years CVE 4 years were profitable.
In the past 5 years CVE always reported a positive cash flow from operatings.
CVE Yearly Net Income VS EBIT VS OCF VS FCFCVE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B

1.2 Ratios

The Return On Assets of CVE (6.77%) is better than 61.65% of its industry peers.
CVE has a Return On Equity (12.51%) which is comparable to the rest of the industry.
The Return On Invested Capital of CVE (8.62%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CVE is significantly below the industry average of 28.73%.
Industry RankSector Rank
ROA 6.77%
ROE 12.51%
ROIC 8.62%
ROA(3y)6.69%
ROA(5y)3.79%
ROE(3y)13.27%
ROE(5y)7.4%
ROIC(3y)11.67%
ROIC(5y)N/A
CVE Yearly ROA, ROE, ROICCVE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20

1.3 Margins

CVE has a Profit Margin (6.65%) which is comparable to the rest of the industry.
The Operating Margin of CVE (9.65%) is worse than 68.45% of its industry peers.
The Gross Margin of CVE (36.48%) is comparable to the rest of the industry.
CVE's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 9.65%
PM (TTM) 6.65%
GM 36.48%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.94%
GM growth 5Y-1.93%
CVE Yearly Profit, Operating, Gross MarginsCVE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

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5

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.
Compared to 1 year ago, CVE has less shares outstanding
CVE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CVE has been reduced compared to a year ago.
CVE Yearly Shares OutstandingCVE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B
CVE Yearly Total Debt VS Total AssetsCVE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B 50B

2.2 Solvency

An Altman-Z score of 2.60 indicates that CVE is not a great score, but indicates only limited risk for bankruptcy at the moment.
CVE's Altman-Z score of 2.60 is fine compared to the rest of the industry. CVE outperforms 70.87% of its industry peers.
CVE has a debt to FCF ratio of 1.83. This is a very positive value and a sign of high solvency as it would only need 1.83 years to pay back of all of its debts.
CVE has a Debt to FCF ratio of 1.83. This is in the better half of the industry: CVE outperforms 79.13% of its industry peers.
CVE has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
CVE has a Debt to Equity ratio of 0.32. This is comparable to the rest of the industry: CVE outperforms 58.74% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.83
Altman-Z 2.6
ROIC/WACC1.22
WACC7.05%
CVE Yearly LT Debt VS Equity VS FCFCVE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B 20B 25B

2.3 Liquidity

CVE has a Current Ratio of 1.59. This is a normal value and indicates that CVE is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CVE (1.59) is better than 65.05% of its industry peers.
CVE has a Quick Ratio of 1.59. This is a bad value and indicates that CVE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CVE (0.95) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.59
Quick Ratio 0.95
CVE Yearly Current Assets VS Current LiabilitesCVE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

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4

3. Growth

3.1 Past

CVE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.55%.
The Revenue has been growing slightly by 4.77% in the past year.
Measured over the past years, CVE shows a very strong growth in Revenue. The Revenue has been growing by 20.16% on average per year.
EPS 1Y (TTM)-7.55%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-56.7%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y58.03%
Revenue growth 5Y20.16%
Sales Q2Q%-2.25%

3.2 Future

CVE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.31% yearly.
The Revenue is expected to grow by 0.57% on average over the next years.
EPS Next Y-11.38%
EPS Next 2Y-0.77%
EPS Next 3Y7.31%
EPS Next 5YN/A
Revenue Next Year7.89%
Revenue Next 2Y0.39%
Revenue Next 3Y0.57%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
CVE Yearly Revenue VS EstimatesCVE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 20B 40B 60B
CVE Yearly EPS VS EstimatesCVE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 1 -1 2 -2 3

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5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 11.18, the valuation of CVE can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CVE indicates a somewhat cheap valuation: CVE is cheaper than 64.08% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CVE to the average of the S&P500 Index (28.47), we can say CVE is valued rather cheaply.
A Price/Forward Earnings ratio of 10.51 indicates a reasonable valuation of CVE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CVE indicates a somewhat cheap valuation: CVE is cheaper than 67.48% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.74. CVE is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 11.18
Fwd PE 10.51
CVE Price Earnings VS Forward Price EarningsCVE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

72.33% of the companies in the same industry are more expensive than CVE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CVE is valued a bit cheaper than 77.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.36
EV/EBITDA 4.32
CVE Per share dataCVE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.77%
EPS Next 3Y7.31%

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5

5. Dividend

5.1 Amount

CVE has a Yearly Dividend Yield of 3.34%. Purely for dividend investing, there may be better candidates out there.
CVE's Dividend Yield is comparable with the industry average which is at 6.57.
Compared to an average S&P500 Dividend Yield of 2.28, CVE pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.34%

5.2 History

The dividend of CVE is nicely growing with an annual growth rate of 22.18%!
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)22.18%
Div Incr Years4
Div Non Decr Years4
CVE Yearly Dividends per shareCVE Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8

5.3 Sustainability

39.78% of the earnings are spent on dividend by CVE. This is a low number and sustainable payout ratio.
CVE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.78%
EPS Next 2Y-0.77%
EPS Next 3Y7.31%
CVE Yearly Income VS Free CF VS DividendCVE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B -2B 4B 6B
CVE Dividend Payout.CVE Dividend Payout, showing the Payout Ratio.CVE Dividend Payout.PayoutRetained Earnings

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CENOVUS ENERGY INC

NYSE:CVE (2/4/2025, 8:04:00 PM)

After market: 15.06 +0.08 (+0.53%)

14.98

+0.87 (+6.17%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)10-31 2024-10-31/bmo
Earnings (Next)02-12 2025-02-12/amc
Inst Owners54.35%
Inst Owner Change-0.65%
Ins Owners0.92%
Ins Owner ChangeN/A
Market Cap27.34B
Analysts83.33
Price Target21.5 (43.52%)
Short Float %1.12%
Short Ratio1.54
Dividend
Industry RankSector Rank
Dividend Yield 3.34%
Yearly Dividend0.54
Dividend Growth(5Y)22.18%
DP39.78%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.55%
Min EPS beat(2)-21.58%
Max EPS beat(2)-5.52%
EPS beat(4)1
Avg EPS beat(4)-4.2%
Min EPS beat(4)-21.58%
Max EPS beat(4)14.37%
EPS beat(8)4
Avg EPS beat(8)-5.42%
EPS beat(12)6
Avg EPS beat(12)-16.49%
EPS beat(16)7
Avg EPS beat(16)-40.06%
Revenue beat(2)2
Avg Revenue beat(2)6.52%
Min Revenue beat(2)3.8%
Max Revenue beat(2)9.24%
Revenue beat(4)3
Avg Revenue beat(4)3.09%
Min Revenue beat(4)-1.92%
Max Revenue beat(4)9.24%
Revenue beat(8)5
Avg Revenue beat(8)2.82%
Revenue beat(12)9
Avg Revenue beat(12)8.06%
Revenue beat(16)12
Avg Revenue beat(16)8.04%
PT rev (1m)-3.74%
PT rev (3m)-9.49%
EPS NQ rev (1m)-42.2%
EPS NQ rev (3m)-61.57%
EPS NY rev (1m)-10.03%
EPS NY rev (3m)-14.88%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)3.53%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)6.25%
Valuation
Industry RankSector Rank
PE 11.18
Fwd PE 10.51
P/S 0.72
P/FCF 7.36
P/OCF 3.95
P/B 1.35
P/tB 1.5
EV/EBITDA 4.32
EPS(TTM)1.34
EY8.95%
EPS(NY)1.43
Fwd EY9.51%
FCF(TTM)2.04
FCFY13.59%
OCF(TTM)3.8
OCFY25.34%
SpS20.82
BVpS11.07
TBVpS9.97
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 6.77%
ROE 12.51%
ROCE 11.12%
ROIC 8.62%
ROICexc 9.21%
ROICexgc 9.85%
OM 9.65%
PM (TTM) 6.65%
GM 36.48%
FCFM 9.78%
ROA(3y)6.69%
ROA(5y)3.79%
ROE(3y)13.27%
ROE(5y)7.4%
ROIC(3y)11.67%
ROIC(5y)N/A
ROICexc(3y)12.61%
ROICexc(5y)N/A
ROICexgc(3y)13.56%
ROICexgc(5y)N/A
ROCE(3y)15.05%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.94%
GM growth 5Y-1.93%
F-Score7
Asset Turnover1.02
Health
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.83
Debt/EBITDA 0.92
Cap/Depr 95.75%
Cap/Sales 8.46%
Interest Coverage 250
Cash Conversion 98.69%
Profit Quality 147.04%
Current Ratio 1.59
Quick Ratio 0.95
Altman-Z 2.6
F-Score7
WACC7.05%
ROIC/WACC1.22
Cap/Depr(3y)71.78%
Cap/Depr(5y)58.55%
Cap/Sales(3y)6.43%
Cap/Sales(5y)6.33%
Profit Quality(3y)267.56%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.55%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-56.7%
EPS Next Y-11.38%
EPS Next 2Y-0.77%
EPS Next 3Y7.31%
EPS Next 5YN/A
Revenue 1Y (TTM)4.77%
Revenue growth 3Y58.03%
Revenue growth 5Y20.16%
Sales Q2Q%-2.25%
Revenue Next Year7.89%
Revenue Next 2Y0.39%
Revenue Next 3Y0.57%
Revenue Next 5YN/A
EBIT growth 1Y-12.5%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year96.24%
EBIT Next 3Y29.05%
EBIT Next 5Y16.22%
FCF growth 1Y-25.9%
FCF growth 3YN/A
FCF growth 5Y31.8%
OCF growth 1Y-4.38%
OCF growth 3Y200.23%
OCF growth 5Y27.95%