CENOVUS ENERGY INC (CVE)
CA15135U1093 - Common Stock
We assign a fundamental rating of 4 out of 10 to CVE. CVE was compared to 204 industry peers in the Oil, Gas & Consumable Fuels industry. CVE scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. CVE has a valuation in line with the averages, but it does not seem to be growing.
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
CVE has a Return On Assets of 6.77%. This is in the better half of the industry: CVE outperforms 60.10% of its industry peers.
Looking at the Return On Equity, with a value of 12.51%, CVE is in line with its industry, outperforming 52.71% of the companies in the same industry.
With a Return On Invested Capital value of 8.62%, CVE perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CVE is significantly below the industry average of 22.54%.
| 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
CVE has a worse Profit Margin (6.65%) than 62.07% of its industry peers.
The Operating Margin of CVE (9.65%) is worse than 68.97% of its industry peers.
CVE has a Gross Margin (36.48%) which is in line with its industry peers.
In the last couple of years the Gross Margin of CVE has declined.
| 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.
Compared to 1 year ago, CVE has less shares outstanding
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
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.
The Altman-Z score of CVE (2.69) is better than 69.95% 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's Debt to FCF ratio of 1.83 is fine compared to the rest of the industry. CVE outperforms 78.82% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that CVE is not too dependend on debt financing.
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 | 2.69 |
ROIC/WACC1.23
WACC7.01%
2.3 Liquidity
A Current Ratio of 1.59 indicates that CVE should not have too much problems paying its short term obligations.
CVE has a better Current ratio (1.59) than 67.98% of its industry peers.
A Quick Ratio of 0.95 indicates that CVE may have some problems paying its short term obligations.
CVE's Quick ratio of 0.95 is in line compared to the rest of the industry. CVE outperforms 45.81% 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 -7.01% in the last year.
The Revenue has been growing slightly by 4.77% in the past year.
The Revenue has been growing by 20.16% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-7.01%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-55.52%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y58.03%
Revenue growth 5Y20.16%
Sales Q2Q%-0.26%
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 9.30% yearly.
The Revenue is expected to decrease by -1.71% on average over the next years.
EPS Next Y4.11%
EPS Next 2Y2.14%
EPS Next 3Y9.3%
EPS Next 5YN/A
Revenue Next Year1.54%
Revenue Next 2Y-0.46%
Revenue Next 3Y-1.7%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.54, the valuation of CVE can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CVE is on the same level as its industry peers.
When comparing the Price/Earnings ratio of CVE to the average of the S&P500 Index (28.65), we can say CVE is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.28, the valuation of CVE can be described as reasonable.
Based on the Price/Forward Earnings ratio, CVE is valued a bit cheaper than the industry average as 65.52% of the companies are valued more expensively.
CVE is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.54 | ||
| Fwd PE | 10.28 |
4.2 Price Multiples
CVE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CVE is cheaper than 69.46% of the companies in the same industry.
75.37% of the companies in the same industry are more expensive than CVE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.63 | ||
| EV/EBITDA | 4.67 |
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.
PEG (NY)2.81
PEG (5Y)N/A
EPS Next 2Y2.14%
EPS Next 3Y9.3%
5. Dividend
5.1 Amount
CVE has a Yearly Dividend Yield of 3.24%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.45, 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 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
5.2 History
On average, the dividend of CVE grows each year by 22.18%, which is quite nice.
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 Years3
Div Non Decr Years3
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 2Y2.14%
EPS Next 3Y9.3%
CENOVUS ENERGY INC
NYSE:CVE (11/21/2024, 1:30:56 PM)
16.27
+0.11 (+0.68%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap29.72B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.54 | ||
| Fwd PE | 10.28 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.81
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.77% | ||
| ROE | 12.51% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.65% | ||
| PM (TTM) | 6.65% | ||
| GM | 36.48% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.59 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-7.01%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y4.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.77%
Revenue growth 3Y58.03%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y