CENOVUS ENERGY INC (CVE.CA) Stock Fundamental Analysis
Canada - TSX:CVE - CA15135U1093 - Common Stock
25.4 CAD
+0.37 (+1.48%)
Overall CVE gets a fundamental rating of 6 out of 10. We evaluated CVE against 212 industry peers in the Oil, Gas & Consumable Fuels industry. CVE has an excellent profitability rating, but there are some minor concerns on its financial health. CVE has a correct valuation and a medium 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.
In the past 5 years CVE always reported a positive cash flow from operatings.
1.2 Ratios
CVE has a better Return On Assets (5.83%) than 85.98% of its industry peers.
CVE has a better Return On Equity (11.00%) than 80.84% of its industry peers.
The Return On Invested Capital of CVE (7.09%) is better than 79.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CVE is significantly above the industry average of 6.73%.
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 51.40% of its industry peers.
CVE's Operating Margin has improved in the last couple of years.
CVE has a Gross Margin (33.16%) which is comparable to the rest of the industry.
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.
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
CVE has an Altman-Z score of 2.70. 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 2.70 is fine compared to the rest of the industry. CVE outperforms 77.10% of its industry peers.
The Debt to FCF ratio of CVE is 3.55, which is a good value as it means it would take CVE, 3.55 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.55, CVE belongs to the top of the industry, outperforming 84.11% 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 (0.34) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 2.7 |
ROIC/WACC0.98
WACC7.22%
2.3 Liquidity
CVE has a Current Ratio of 1.73. This is a normal value and indicates that CVE is financially healthy and should not expect problems in meeting its short term obligations.
CVE has a better Current ratio (1.73) than 75.70% of its industry peers.
A Quick Ratio of 1.18 indicates that CVE should not have too much problems paying its short term obligations.
CVE has a Quick ratio of 1.18. This is in the better half of the industry: CVE outperforms 68.69% 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.
Measured over the past years, CVE shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.97% on average per year.
The Revenue has decreased by -9.17% in the past year.
CVE shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.88% yearly.
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
The Earnings Per Share is expected to grow by 23.27% on average over the next years. This is a very strong growth
CVE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.51% yearly.
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
With a Price/Earnings ratio of 14.85, CVE is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of CVE indicates a somewhat cheap valuation: CVE is cheaper than 65.89% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.89, CVE is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.88, the valuation of CVE can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CVE is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, CVE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.85 | ||
| Fwd PE | 15.88 |
4.2 Price Multiples
CVE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CVE is cheaper than 85.05% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CVE indicates a somewhat cheap valuation: CVE is cheaper than 66.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.08 | ||
| EV/EBITDA | 5.74 |
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.
The decent profitability rating of CVE may justify a higher PE ratio.
CVE's earnings are expected to grow with 14.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.1
PEG (5Y)0.44
EPS Next 2Y-1.25%
EPS Next 3Y14.64%
5. Dividend
5.1 Amount
CVE has a Yearly Dividend Yield of 3.20%.
CVE's Dividend Yield is a higher than the industry average which is at 5.31.
CVE's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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
45.02% of the earnings are spent on dividend by CVE. 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 (11/14/2025, 7:00:00 PM)
25.4
+0.37 (+1.48%)
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 Cap45.40B
Revenue(TTM)50.56B
Net Income(TTM)3.12B
Analysts80.95
Price Target28.06 (10.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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)2.61%
PT rev (3m)6.93%
EPS NQ rev (1m)-9.76%
EPS NQ rev (3m)-24.69%
EPS NY rev (1m)8.57%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)-3.58%
Revenue NQ rev (3m)8.13%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)3.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.85 | ||
| Fwd PE | 15.88 | ||
| P/S | 0.9 | ||
| P/FCF | 16.08 | ||
| P/OCF | 5.78 | ||
| P/B | 1.6 | ||
| P/tB | 1.78 | ||
| EV/EBITDA | 5.74 |
EPS(TTM)1.71
EY6.73%
EPS(NY)1.6
Fwd EY6.3%
FCF(TTM)1.58
FCFY6.22%
OCF(TTM)4.39
OCFY17.29%
SpS28.29
BVpS15.88
TBVpS14.24
PEG (NY)2.1
PEG (5Y)0.44
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 | 2.7 |
F-Score5
WACC7.22%
ROIC/WACC0.98
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 14.85 and the Price/Book (PB) ratio is 1.6.
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.