CENOVUS ENERGY INC (CVE.CA) Stock Fundamental Analysis
Canada - TSX:CVE - CA15135U1093 - Common Stock
23.67 CAD
+0.33 (+1.41%)
Overall CVE gets a fundamental rating of 5 out of 10. We evaluated CVE against 212 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.
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.
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's Return On Assets of 4.74% is fine compared to the rest of the industry. CVE outperforms 77.83% of its industry peers.
CVE's Return On Equity of 9.01% is fine compared to the rest of the industry. CVE outperforms 65.09% of its industry peers.
CVE has a Return On Invested Capital of 6.17%. This is in the better half of the industry: CVE outperforms 76.89% of its industry peers.
CVE had an Average Return On Invested Capital over the past 3 years of 11.92%. This is significantly above the industry average of 6.85%.
The last Return On Invested Capital (6.17%) for CVE is well below the 3 year average (11.92%), which needs to be investigated, but indicates that CVE had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 9.01% | ||
| ROIC | 6.17% |
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 (5.13%) which is in line with its industry peers.
In the last couple of years the Profit Margin of CVE has declined.
CVE has a Operating Margin (7.37%) which is in line with its industry peers.
CVE's Operating Margin has improved in the last couple of years.
CVE has a Gross Margin (31.62%) 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 | 7.37% | ||
| PM (TTM) | 5.13% | ||
| GM | 31.62% |
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
Compared to 5 years ago, CVE has more shares outstanding
CVE has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.45 indicates that CVE is not a great score, but indicates only limited risk for bankruptcy at the moment.
CVE's Altman-Z score of 2.45 is fine compared to the rest of the industry. CVE outperforms 72.17% of its industry peers.
The Debt to FCF ratio of CVE is 3.52, which is a good value as it means it would take CVE, 3.52 years of fcf income to pay off all of its debts.
CVE has a better Debt to FCF ratio (3.52) than 84.91% 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 57.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 2.45 |
ROIC/WACC0.8
WACC7.72%
2.3 Liquidity
CVE has a Current Ratio of 1.32. 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 (1.32) is better than 68.40% of its industry peers.
A Quick Ratio of 0.78 indicates that CVE may have some problems paying its short term obligations.
CVE's Quick ratio of 0.78 is in line compared to the rest of the industry. CVE outperforms 57.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The earnings per share for CVE have decreased strongly by -43.82% 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.
Looking at the last year, CVE shows a decrease in Revenue. The Revenue has decreased by -7.82% in the last year.
Measured over the past years, CVE shows a very strong growth in Revenue. The Revenue has been growing by 21.88% on average per year.
EPS 1Y (TTM)-43.82%
EPS 3Y87.2%
EPS 5Y33.97%
EPS Q2Q%-15.09%
Revenue 1Y (TTM)-7.82%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-17.24%
3.2 Future
Based on estimates for the next years, CVE will show a very strong growth in Earnings Per Share. The EPS will grow by 23.27% on average per year.
The Revenue is expected to decrease by -4.67% on average over the next years.
EPS Next Y-1.37%
EPS Next 2Y-2.47%
EPS Next 3Y13.54%
EPS Next 5Y23.27%
Revenue Next Year-8.75%
Revenue Next 2Y-6.1%
Revenue Next 3Y-4.67%
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
With a Price/Earnings ratio of 16.79, CVE is valued correctly.
64.15% of the companies in the same industry are more expensive than CVE, based on the Price/Earnings ratio.
CVE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.17, the valuation of CVE can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as CVE.
CVE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.79 | ||
| Fwd PE | 15.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVE is valued cheaply inside the industry as 83.96% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CVE indicates a somewhat cheap valuation: CVE is cheaper than 68.40% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.22 | ||
| EV/EBITDA | 5.71 |
4.3 Compensation for Growth
The decent profitability rating of CVE may justify a higher PE ratio.
A more expensive valuation may be justified as CVE's earnings are expected to grow with 13.54% in the coming years.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y-2.47%
EPS Next 3Y13.54%
5. Dividend
5.1 Amount
CVE has a Yearly Dividend Yield of 3.43%.
CVE's Dividend Yield is a higher than the industry average which is at 6.78.
CVE's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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
CVE pays out 52.38% of its income as dividend. 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.
DP52.38%
EPS Next 2Y-2.47%
EPS Next 3Y13.54%
TSX:CVE (10/3/2025, 7:00:00 PM)
23.67
+0.33 (+1.41%)
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 Cap42.31B
Analysts80
Price Target27.35 (15.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
Yearly Dividend0.84
Dividend Growth(5Y)31.72%
DP52.38%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)101.63%
Min EPS beat(2)25.67%
Max EPS beat(2)177.6%
EPS beat(4)2
Avg EPS beat(4)31.19%
Min EPS beat(4)-72.97%
Max EPS beat(4)177.6%
EPS beat(8)4
Avg EPS beat(8)15.06%
EPS beat(12)6
Avg EPS beat(12)3.89%
EPS beat(16)8
Avg EPS beat(16)-6.48%
Revenue beat(2)0
Avg Revenue beat(2)-4.79%
Min Revenue beat(2)-5.43%
Max Revenue beat(2)-4.15%
Revenue beat(4)1
Avg Revenue beat(4)-4.06%
Min Revenue beat(4)-10.43%
Max Revenue beat(4)3.8%
Revenue beat(8)4
Avg Revenue beat(8)-0.2%
Revenue beat(12)6
Avg Revenue beat(12)3.13%
Revenue beat(16)10
Avg Revenue beat(16)5.12%
PT rev (1m)3.95%
PT rev (3m)3.55%
EPS NQ rev (1m)16.36%
EPS NQ rev (3m)49.38%
EPS NY rev (1m)-2.8%
EPS NY rev (3m)-7.49%
Revenue NQ rev (1m)4%
Revenue NQ rev (3m)3.46%
Revenue NY rev (1m)2.51%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.79 | ||
| Fwd PE | 15.17 | ||
| P/S | 0.82 | ||
| P/FCF | 14.22 | ||
| P/OCF | 5.16 | ||
| P/B | 1.44 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 5.71 |
EPS(TTM)1.41
EY5.96%
EPS(NY)1.56
Fwd EY6.59%
FCF(TTM)1.66
FCFY7.03%
OCF(TTM)4.58
OCFY19.36%
SpS28.88
BVpS16.45
TBVpS14.81
PEG (NY)N/A
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 9.01% | ||
| ROCE | 7.82% | ||
| ROIC | 6.17% | ||
| ROICexc | 6.51% | ||
| ROICexgc | 6.95% | ||
| OM | 7.37% | ||
| PM (TTM) | 5.13% | ||
| GM | 31.62% | ||
| FCFM | 5.76% |
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 Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.52 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 105.59% | ||
| Cap/Sales | 10.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 93.66% | ||
| Profit Quality | 112.35% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 2.45 |
F-Score4
WACC7.72%
ROIC/WACC0.8
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)-43.82%
EPS 3Y87.2%
EPS 5Y33.97%
EPS Q2Q%-15.09%
EPS Next Y-1.37%
EPS Next 2Y-2.47%
EPS Next 3Y13.54%
EPS Next 5Y23.27%
Revenue 1Y (TTM)-7.82%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-17.24%
Revenue Next Year-8.75%
Revenue Next 2Y-6.1%
Revenue Next 3Y-4.67%
Revenue Next 5YN/A
EBIT growth 1Y-45.73%
EBIT growth 3Y1.79%
EBIT growth 5Y24.73%
EBIT Next Year99.31%
EBIT Next 3Y27.11%
EBIT Next 5Y17.19%
FCF growth 1Y-34.2%
FCF growth 3Y7.94%
FCF growth 5Y14.96%
OCF growth 1Y-6.52%
OCF growth 3Y15.98%
OCF growth 5Y22.96%