CENOVUS ENERGY INC (CVE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CVE - CA15135U1093 - Common Stock
22.87 CAD
+0.17 (+0.75%)
We assign a fundamental rating of 6 out of 10 to CVE. CVE was compared to 214 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 decent growth rate and is not valued too expensively.
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.
Of the past 5 years CVE 4 years were profitable.
Each year in the past 5 years CVE had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 5.83%, CVE belongs to the best of the industry, outperforming 87.85% of the companies in the same industry.
With an excellent Return On Equity value of 11.00%, CVE belongs to the best of the industry, outperforming 82.71% of the companies in the same industry.
With an excellent Return On Invested Capital value of 7.09%, CVE belongs to the best of the industry, outperforming 85.98% 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 significantly above the industry average of 6.42%.
The last Return On Invested Capital (7.09%) 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 | 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
With a decent Profit Margin value of 6.17%, CVE is doing good in the industry, outperforming 60.28% of the companies in the same industry.
In the last couple of years the Profit Margin of CVE has declined.
CVE's Operating Margin of 8.46% is in line compared to the rest of the industry. CVE outperforms 56.54% of its industry peers.
In the last couple of years the Operating Margin of CVE has grown nicely.
CVE has a Gross Margin of 33.16%. This is comparable to the rest of the industry: CVE outperforms 54.21% of its industry peers.
CVE's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, CVE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.64 indicates that CVE is not a great score, but indicates only limited risk for bankruptcy at the moment.
CVE has a Altman-Z score of 2.64. This is in the better half of the industry: CVE outperforms 78.04% 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.
CVE's Debt to FCF ratio of 3.55 is amongst the best of the industry. CVE outperforms 84.11% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that CVE is not too dependend on debt financing.
CVE has a Debt to Equity ratio of 0.34. This is comparable to the rest of the industry: CVE outperforms 59.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 2.64 |
ROIC/WACC0.98
WACC7.24%
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.
The Current ratio of CVE (1.73) is better than 77.57% of its industry peers.
A Quick Ratio of 1.18 indicates that CVE should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.18, CVE is doing good in the industry, outperforming 70.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
CVE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.76%.
The Earnings Per Share has been growing by 33.97% on average over the past years. This is a very strong growth
CVE shows a decrease in Revenue. In the last year, the revenue decreased by -9.17%.
The Revenue has been growing by 21.88% on average over the past years. This is a very strong growth!
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 26.68% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -4.98% on average over the next years.
EPS Next Y30.56%
EPS Next 2Y2.22%
EPS Next 3Y10.25%
EPS Next 5Y26.68%
Revenue Next Year-9.46%
Revenue Next 2Y-8.76%
Revenue Next 3Y-4.98%
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
CVE is valuated correctly with a Price/Earnings ratio of 13.37.
Compared to the rest of the industry, the Price/Earnings ratio of CVE indicates a somewhat cheap valuation: CVE is cheaper than 68.69% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. CVE is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 13.35 indicates a correct valuation of CVE.
CVE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CVE is cheaper than 65.89% of the companies in the same industry.
CVE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.37 | ||
| Fwd PE | 13.35 |
4.2 Price Multiples
CVE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CVE is cheaper than 87.38% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CVE is valued a bit cheaper than the industry average as 68.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.31 | ||
| EV/EBITDA | 5.47 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CVE may justify a higher PE ratio.
PEG (NY)0.44
PEG (5Y)0.39
EPS Next 2Y2.22%
EPS Next 3Y10.25%
5. Dividend
5.1 Amount
CVE has a Yearly Dividend Yield of 3.52%. Purely for dividend investing, there may be better candidates out there.
CVE's Dividend Yield is a higher than the industry average which is at 2.73.
Compared to an average S&P500 Dividend Yield of 1.94, CVE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
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 45.02% 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.
DP45.02%
EPS Next 2Y2.22%
EPS Next 3Y10.25%
TSX:CVE (1/9/2026, 7:00:00 PM)
22.87
+0.17 (+0.75%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners53.35%
Inst Owner ChangeN/A
Ins Owners0.64%
Ins Owner ChangeN/A
Market Cap43.23B
Revenue(TTM)50.56B
Net Income(TTM)3.12B
Analysts80
Price Target29.75 (30.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
Yearly Dividend0.84
Dividend Growth(5Y)31.72%
DP45.02%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
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)4.71%
PT rev (3m)8.79%
EPS NQ rev (1m)4.9%
EPS NQ rev (3m)10.08%
EPS NY rev (1m)2.56%
EPS NY rev (3m)32.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.93%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)-0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.37 | ||
| Fwd PE | 13.35 | ||
| P/S | 0.86 | ||
| P/FCF | 15.31 | ||
| P/OCF | 5.51 | ||
| P/B | 1.52 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 5.47 |
EPS(TTM)1.71
EY7.48%
EPS(NY)1.71
Fwd EY7.49%
FCF(TTM)1.49
FCFY6.53%
OCF(TTM)4.15
OCFY18.16%
SpS26.75
BVpS15.01
TBVpS13.46
PEG (NY)0.44
PEG (5Y)0.39
Graham Number24.03
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 | 2.64 |
F-Score5
WACC7.24%
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 Y30.56%
EPS Next 2Y2.22%
EPS Next 3Y10.25%
EPS Next 5Y26.68%
Revenue 1Y (TTM)-9.17%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-7.4%
Revenue Next Year-9.46%
Revenue Next 2Y-8.76%
Revenue Next 3Y-4.98%
Revenue Next 5YN/A
EBIT growth 1Y-20.33%
EBIT growth 3Y1.79%
EBIT growth 5Y24.73%
EBIT Next Year102.61%
EBIT Next 3Y32.13%
EBIT Next 5Y21.02%
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.
Can you provide the valuation status for CENOVUS ENERGY INC?
ChartMill assigns a valuation rating of 6 / 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 13.37 and the Price/Book (PB) ratio is 1.52.
Can you provide the financial health for CVE stock?
The financial health rating of CENOVUS ENERGY INC (CVE.CA) is 6 / 10.