CENOVUS ENERGY INC (CVE.CA) Stock Fundamental Analysis
TSX:CVE - Toronto Stock Exchange - CA15135U1093 - Common Stock - Currency: CAD
CVE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 214 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of CVE get a neutral evaluation. Nothing too spectacular is happening here. CVE has a correct valuation and a medium growth rate.
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's Return On Assets of 4.95% is fine compared to the rest of the industry. CVE outperforms 78.04% of its industry peers.
With a decent Return On Equity value of 9.30%, CVE is doing good in the industry, outperforming 74.30% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.38%, CVE is doing good in the industry, outperforming 78.50% of the companies in the same industry.
CVE had an Average Return On Invested Capital over the past 3 years of 11.92%. This is above the industry average of 7.26%.
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
With a Profit Margin value of 5.15%, CVE perfoms like the industry average, outperforming 57.94% of the companies in the same industry.
In the last couple of years the Profit Margin of CVE has declined.
CVE has a Operating Margin of 8.54%. This is comparable to the rest of the industry: CVE outperforms 52.80% of its industry peers.
In the last couple of years the Operating Margin of CVE has grown nicely.
With a Gross Margin value of 32.07%, CVE perfoms like the industry average, outperforming 51.87% of the companies in the same industry.
CVE's Gross Margin has declined in the last couple of years.
| 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
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.
Compared to 5 years ago, CVE has more shares outstanding
CVE has a worse debt/assets ratio than last year.
2.2 Solvency
CVE has an Altman-Z score of 2.41. 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 (2.41) than 73.83% 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's Debt to FCF ratio of 3.53 is fine compared to the rest of the industry. CVE outperforms 79.91% 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.
With a Debt to Equity ratio value of 0.34, CVE perfoms like the industry average, outperforming 57.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.92
WACC8.02%
2.3 Liquidity
CVE has a Current Ratio of 1.46. This is a normal value and indicates that CVE is financially healthy and should not expect problems in meeting 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 72.43% of the companies in the same industry.
A Quick Ratio of 0.84 indicates that CVE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.84, CVE is in the better half of the industry, outperforming 62.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The earnings per share for CVE have decreased strongly by -43.54% in the last year.
CVE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.97% yearly.
Looking at the last year, CVE shows a small growth in Revenue. The Revenue has grown by 3.97% in the last 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)-43.54%
EPS 3Y87.2%
EPS 5Y33.97%
EPS Q2Q%-13.76%
Revenue 1Y (TTM)3.97%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-17.16%
3.2 Future
The Earnings Per Share is expected to grow by 19.52% on average over the next years. This is quite good.
CVE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.58% yearly.
EPS Next Y6.62%
EPS Next 2Y18.58%
EPS Next 3Y19.52%
EPS Next 5YN/A
Revenue Next Year-11.68%
Revenue Next 2Y-7.91%
Revenue Next 3Y-7.58%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
The Price/Earnings ratio is 14.25, which indicates a correct valuation of CVE.
Based on the Price/Earnings ratio, CVE is valued a bit cheaper than the industry average as 63.08% of the companies are valued more expensively.
CVE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.54.
A Price/Forward Earnings ratio of 8.77 indicates a reasonable valuation of CVE.
Based on the Price/Forward Earnings ratio, CVE is valued a bit cheaper than the industry average as 65.42% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 35.28. CVE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.25 | ||
| Fwd PE | 8.77 |
4.2 Price Multiples
85.98% of the companies in the same industry are more expensive than CVE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CVE is valued a bit cheaper than 71.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.97 | ||
| EV/EBITDA | 4.6 |
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.
CVE's earnings are expected to grow with 19.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.15
PEG (5Y)0.42
EPS Next 2Y18.58%
EPS Next 3Y19.52%
5. Dividend
5.1 Amount
CVE has a Yearly Dividend Yield of 3.62%.
CVE's Dividend Yield is a higher than the industry average which is at 5.75.
Compared to an average S&P500 Dividend Yield of 2.40, CVE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
5.2 History
The dividend of CVE is nicely growing with an annual growth rate of 31.72%!
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)31.72%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
CVE pays out 57.77% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of CVE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP57.77%
EPS Next 2Y18.58%
EPS Next 3Y19.52%
TSX:CVE (8/7/2025, 7:00:00 PM)
20.23
-0.16 (-0.78%)
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 Cap36.53B
Analysts79.09
Price Target25.76 (27.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
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)-2.44%
PT rev (3m)-4.29%
EPS NQ rev (1m)-33.36%
EPS NQ rev (3m)-60.93%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)-2.19%
Revenue NY rev (1m)-2.97%
Revenue NY rev (3m)-2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.25 | ||
| Fwd PE | 8.77 | ||
| P/S | 0.67 | ||
| P/FCF | 11.97 | ||
| P/OCF | 4.42 | ||
| P/B | 1.22 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 4.6 |
EPS(TTM)1.42
EY7.02%
EPS(NY)2.31
Fwd EY11.4%
FCF(TTM)1.69
FCFY8.36%
OCF(TTM)4.57
OCFY22.61%
SpS30
BVpS16.63
TBVpS15.01
PEG (NY)2.15
PEG (5Y)0.42
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 | 2.41 |
F-Score4
WACC8.02%
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)-43.54%
EPS 3Y87.2%
EPS 5Y33.97%
EPS Q2Q%-13.76%
EPS Next Y6.62%
EPS Next 2Y18.58%
EPS Next 3Y19.52%
EPS Next 5YN/A
Revenue 1Y (TTM)3.97%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-17.16%
Revenue Next Year-11.68%
Revenue Next 2Y-7.91%
Revenue Next 3Y-7.58%
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%