CENOVUS ENERGY INC (CVE.CA) Stock Fundamental Analysis
TSX:CVE - Toronto Stock Exchange - CA15135U1093 - Common Stock - Currency: CAD
Taking everything into account, CVE scores 6 out of 10 in our fundamental rating. CVE was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. CVE has an average financial health and profitability rating. CVE has a correct valuation and a medium growth rate. Finally CVE also has an excellent dividend rating. This makes CVE very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year CVE was profitable.
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
CVE has a better Return On Assets (4.95%) than 79.44% of its industry peers.
With a decent Return On Equity value of 9.30%, CVE is doing good in the industry, outperforming 74.77% of the companies in the same industry.
CVE has a Return On Invested Capital of 7.38%. This is in the better half of the industry: CVE outperforms 78.50% of its industry peers.
CVE had an Average Return On Invested Capital over the past 3 years of 11.92%. This is above the industry average of 7.31%.
The 3 year average ROIC (11.92%) for CVE is well above the current ROIC(7.38%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 9.3% | ||
| ROIC | 7.38% |
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
CVE has a Profit Margin (5.15%) which 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 (8.54%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CVE has grown nicely.
CVE's Gross Margin of 32.07% is in line compared to the rest of the industry. CVE outperforms 51.87% of its industry peers.
In the last couple of years the Gross Margin of CVE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.54% | ||
| PM (TTM) | 5.15% | ||
| GM | 32.07% |
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
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
The number of shares outstanding for CVE has been increased compared to 5 years ago.
Compared to 1 year ago, CVE has a worse debt to assets ratio.
2.2 Solvency
CVE has an Altman-Z score of 2.39. 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 has a better Altman-Z score (2.39) than 72.43% of its industry peers.
The Debt to FCF ratio of CVE is 3.53, which is a good value as it means it would take CVE, 3.53 years of fcf income to pay off all of its debts.
CVE has a Debt to FCF ratio of 3.53. This is in the better half of the industry: CVE outperforms 78.97% of its industry peers.
CVE has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
CVE has a Debt to Equity ratio of 0.34. This is comparable to the rest of the industry: CVE outperforms 55.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.92
WACC8.01%
2.3 Liquidity
A Current Ratio of 1.46 indicates that CVE should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.46, CVE is in the better half of the industry, outperforming 71.50% of the companies in the same industry.
CVE has a Quick Ratio of 1.46. 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 better Quick ratio (0.84) than 62.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
CVE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.43%.
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 small growth in Revenue. In the last year, the Revenue has grown by 1.57%.
CVE shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.88% yearly.
EPS 1Y (TTM)-38.43%
EPS 3Y87.2%
EPS 5Y33.97%
EPS Q2Q%-24.19%
Revenue 1Y (TTM)1.57%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-0.73%
3.2 Future
The Earnings Per Share is expected to grow by 19.52% on average over the next years. This is quite good.
Based on estimates for the next years, CVE will show a decrease in Revenue. The Revenue will decrease by -5.74% on average per year.
EPS Next Y6.62%
EPS Next 2Y18.58%
EPS Next 3Y19.52%
EPS Next 5YN/A
Revenue Next Year-8.98%
Revenue Next 2Y-4.96%
Revenue Next 3Y-5.74%
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.
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 correctly with a Price/Earnings ratio of 13.24.
Based on the Price/Earnings ratio, CVE is valued a bit cheaper than 64.49% of the companies in the same industry.
CVE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.19.
CVE is valuated reasonably with a Price/Forward Earnings ratio of 8.56.
66.36% of the companies in the same industry are more expensive than CVE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CVE to the average of the S&P500 Index (35.33), we can say CVE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.24 | ||
| Fwd PE | 8.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVE is valued cheaper than 85.51% 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 71.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.69 | ||
| EV/EBITDA | 4.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CVE has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CVE's earnings are expected to grow with 19.52% in the coming years.
PEG (NY)2
PEG (5Y)0.39
EPS Next 2Y18.58%
EPS Next 3Y19.52%
5. Dividend
5.1 Amount
CVE has a Yearly Dividend Yield of 4.07%, which is a nice return.
Compared to an average industry Dividend Yield of 6.24, CVE pays a bit more dividend than its industry peers.
CVE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
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
57.77% 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.
DP57.77%
EPS Next 2Y18.58%
EPS Next 3Y19.52%
TSX:CVE (7/14/2025, 7:00:00 PM)
19.73
-0.33 (-1.65%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners52.31%
Inst Owner ChangeN/A
Ins Owners0.66%
Ins Owner ChangeN/A
Market Cap35.70B
Analysts79.09
Price Target26.41 (33.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
Yearly Dividend0.84
Dividend Growth(5Y)31.72%
DP57.77%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-23.65%
Min EPS beat(2)-72.97%
Max EPS beat(2)25.67%
EPS beat(4)1
Avg EPS beat(4)-18.6%
Min EPS beat(4)-72.97%
Max EPS beat(4)25.67%
EPS beat(8)4
Avg EPS beat(8)-6.58%
EPS beat(12)6
Avg EPS beat(12)-10.49%
EPS beat(16)7
Avg EPS beat(16)-21.6%
Revenue beat(2)0
Avg Revenue beat(2)-7.93%
Min Revenue beat(2)-10.43%
Max Revenue beat(2)-5.43%
Revenue beat(4)2
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-10.43%
Max Revenue beat(4)9.24%
Revenue beat(8)4
Avg Revenue beat(8)-0.09%
Revenue beat(12)7
Avg Revenue beat(12)5.76%
Revenue beat(16)11
Avg Revenue beat(16)6.01%
PT rev (1m)0.34%
PT rev (3m)-10.32%
EPS NQ rev (1m)-11.21%
EPS NQ rev (3m)-41.38%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.42%
Revenue NQ rev (1m)-1.94%
Revenue NQ rev (3m)-1.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.24 | ||
| Fwd PE | 8.56 | ||
| P/S | 0.66 | ||
| P/FCF | 11.69 | ||
| P/OCF | 4.32 | ||
| P/B | 1.19 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | 4.51 |
EPS(TTM)1.49
EY7.55%
EPS(NY)2.31
Fwd EY11.69%
FCF(TTM)1.69
FCFY8.55%
OCF(TTM)4.57
OCFY23.14%
SpS29.94
BVpS16.6
TBVpS14.98
PEG (NY)2
PEG (5Y)0.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 9.3% | ||
| ROCE | 9.36% | ||
| ROIC | 7.38% | ||
| ROICexc | 7.81% | ||
| ROICexgc | 8.33% | ||
| OM | 8.54% | ||
| PM (TTM) | 5.15% | ||
| GM | 32.07% | ||
| FCFM | 5.64% |
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
ROICexcg growth 3Y-0.51%
ROICexcg 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-Score4
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.53 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 104.37% | ||
| Cap/Sales | 9.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.89% | ||
| Profit Quality | 109.35% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 2.39 |
F-Score4
WACC8.01%
ROIC/WACC0.92
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)-38.43%
EPS 3Y87.2%
EPS 5Y33.97%
EPS Q2Q%-24.19%
EPS Next Y6.62%
EPS Next 2Y18.58%
EPS Next 3Y19.52%
EPS Next 5YN/A
Revenue 1Y (TTM)1.57%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-0.73%
Revenue Next Year-8.98%
Revenue Next 2Y-4.96%
Revenue Next 3Y-5.74%
Revenue Next 5YN/A
EBIT growth 1Y-29.74%
EBIT growth 3Y1.79%
EBIT growth 5Y24.73%
EBIT Next Year96.04%
EBIT Next 3Y23.1%
EBIT Next 5Y16.96%
FCF growth 1Y-46.33%
FCF growth 3Y7.94%
FCF growth 5Y14.96%
OCF growth 1Y-15.29%
OCF growth 3Y15.98%
OCF growth 5Y22.96%