CENOVUS ENERGY INC (CVE)
CA15135U1093 - Common Stock
Taking everything into account, CVE scores 4 out of 10 in our fundamental rating. CVE was compared to 205 industry peers in the Oil, Gas & Consumable Fuels industry. The financial health of CVE is average, but there are quite some concerns on its profitability. CVE is valued correctly, but it does not seem to be growing.
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.
In the past 5 years CVE always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.77%, CVE is doing good in the industry, outperforming 60.78% of the companies in the same industry.
CVE has a Return On Equity of 12.51%. This is comparable to the rest of the industry: CVE outperforms 55.39% of its industry peers.
With a Return On Invested Capital value of 8.62%, CVE perfoms like the industry average, outperforming 59.31% of the companies in the same industry.
CVE had an Average Return On Invested Capital over the past 3 years of 11.67%. This is significantly below the industry average of 29.02%.
| Industry Rank | Sector 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
1.3 Margins
The Profit Margin of CVE (6.65%) is worse than 61.76% of its industry peers.
CVE has a worse Operating Margin (9.65%) than 69.61% of its industry peers.
CVE has a Gross Margin (36.48%) 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 | 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%
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.
The number of shares outstanding for CVE has been reduced compared to 1 year ago.
The number of shares outstanding for CVE has been increased compared to 5 years ago.
CVE has a better debt/assets ratio than last year.
2.2 Solvency
CVE has an Altman-Z score of 2.61. 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.
CVE's Altman-Z score of 2.61 is fine compared to the rest of the industry. CVE outperforms 72.06% of its industry peers.
The Debt to FCF ratio of CVE is 1.83, which is an excellent value as it means it would take CVE, only 1.83 years of fcf income to pay off 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 78.92% 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.
The Debt to Equity ratio of CVE (0.32) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.83 | ||
| Altman-Z | 2.61 |
ROIC/WACC1.24
WACC6.95%
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.
CVE's Current ratio of 1.59 is fine compared to the rest of the industry. CVE outperforms 66.67% 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.
CVE has a Quick ratio of 0.95. This is comparable to the rest of the industry: CVE outperforms 45.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for CVE have decreased by -7.55% in the last year.
CVE shows a small growth in Revenue. In the last year, the Revenue has grown by 4.77%.
The Revenue has been growing by 20.16% on average over the past years. This is a very strong growth!
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.53% yearly.
CVE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.58% yearly.
EPS Next Y-1.5%
EPS Next 2Y-3.4%
EPS Next 3Y9.53%
EPS Next 5YN/A
Revenue Next Year7.36%
Revenue Next 2Y-1.21%
Revenue Next 3Y-0.58%
Revenue Next 5YN/A
3.3 Evolution
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
CVE is valuated reasonably with a Price/Earnings ratio of 10.60.
CVE's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.73, CVE is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.48, the valuation of CVE can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CVE is valued a bit cheaper than the industry average as 63.24% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.83. CVE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.6 | ||
| Fwd PE | 10.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CVE indicates a somewhat cheap valuation: CVE is cheaper than 70.10% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CVE is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.95 | ||
| EV/EBITDA | 4.34 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.4%
EPS Next 3Y9.53%
5. Dividend
5.1 Amount
CVE has a Yearly Dividend Yield of 3.48%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.08, CVE has a dividend in line with its industry peers.
CVE's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
5.2 History
The dividend of CVE is nicely growing with an annual growth rate of 22.18%!
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)22.18%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
39.78% of the earnings are spent on dividend by CVE. This is a low number and sustainable payout ratio.
The dividend of CVE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP39.78%
EPS Next 2Y-3.4%
EPS Next 3Y9.53%
CENOVUS ENERGY INC
NYSE:CVE (12/20/2024, 8:04:28 PM)
After market: 14.44 +0.02 (+0.14%)14.42
+0.07 (+0.49%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners54.35%
Inst Owner Change-6.16%
Ins Owners0.92%
Ins Owner ChangeN/A
Market Cap26.32B
Analysts83.33
Price Target22.98 (59.36%)
Short Float %1.44%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
Dividend Growth(5Y)22.18%
DP39.78%
Div Incr Years4
Div Non Decr Years4
Ex-Date
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)-3.26%
PT rev (3m)-10.18%
EPS NQ rev (1m)-2.93%
EPS NQ rev (3m)-33.51%
EPS NY rev (1m)-5.39%
EPS NY rev (3m)-43.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.82%
Revenue NY rev (1m)5.73%
Revenue NY rev (3m)-9.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.6 | ||
| Fwd PE | 10.48 | ||
| P/S | 0.68 | ||
| P/FCF | 6.95 | ||
| P/OCF | 3.73 | ||
| P/B | 1.28 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | 4.34 |
EPS(TTM)1.36
EY9.43%
EPS(NY)1.38
Fwd EY9.54%
FCF(TTM)2.07
FCFY14.38%
OCF(TTM)3.87
OCFY26.81%
SpS21.2
BVpS11.27
TBVpS10.16
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.61 |
F-Score7
WACC6.95%
ROIC/WACC1.24
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-1.5%
EPS Next 2Y-3.4%
EPS Next 3Y9.53%
EPS Next 5YN/A
Revenue 1Y (TTM)4.77%
Revenue growth 3Y58.03%
Revenue growth 5Y20.16%
Sales Q2Q%-2.25%
Revenue Next Year7.36%
Revenue Next 2Y-1.21%
Revenue Next 3Y-0.58%
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 5Y16.31%
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%