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CENOVUS ENERGY INC (CVE.CA) Stock Fundamental Analysis

TSX:CVE - Toronto Stock Exchange - CA15135U1093 - Common Stock - Currency: CAD

21.93  +0.1 (+0.46%)

Fundamental Rating

6

Taking everything into account, CVE scores 6 out of 10 in our fundamental rating. CVE was compared to 221 industry peers in the Oil, Gas & Consumable Fuels industry. CVE has only an average score on both its financial health and profitability. CVE is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

In the past year CVE was profitable.
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.
CVE.CA Yearly Net Income VS EBIT VS OCF VS FCFCVE.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B

1.2 Ratios

Looking at the Return On Assets, with a value of 6.77%, CVE belongs to the top of the industry, outperforming 83.57% of the companies in the same industry.
The Return On Equity of CVE (12.51%) is better than 81.16% of its industry peers.
CVE has a better Return On Invested Capital (8.62%) than 85.02% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CVE is above the industry average of 7.73%.
Industry RankSector Rank
ROA 6.77%
ROE 12.51%
ROIC 8.62%
ROA(3y)6.69%
ROA(5y)3.79%
ROE(3y)13.27%
ROE(5y)7.4%
ROIC(3y)11.67%
ROIC(5y)N/A
CVE.CA Yearly ROA, ROE, ROICCVE.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20

1.3 Margins

CVE has a Profit Margin (6.65%) which is comparable to the rest of the industry.
CVE has a Operating Margin (9.65%) which is in line with its industry peers.
With a Gross Margin value of 36.48%, CVE perfoms like the industry average, outperforming 49.76% of the companies in the same industry.
CVE's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 9.65%
PM (TTM) 6.65%
GM 36.48%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.94%
GM growth 5Y-1.93%
CVE.CA Yearly Profit, Operating, Gross MarginsCVE.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

6

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
CVE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CVE has an improved debt to assets ratio.
CVE.CA Yearly Shares OutstandingCVE.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B
CVE.CA Yearly Total Debt VS Total AssetsCVE.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B 50B

2.2 Solvency

An Altman-Z score of 2.65 indicates that CVE is not a great score, but indicates only limited risk for bankruptcy at the moment.
CVE's Altman-Z score of 2.65 is fine compared to the rest of the industry. CVE outperforms 73.91% of its industry peers.
CVE has a debt to FCF ratio of 1.83. This is a very positive value and a sign of high solvency as it would only need 1.83 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.83, CVE belongs to the best of the industry, outperforming 87.92% of the companies in the same industry.
CVE has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CVE (0.32) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.83
Altman-Z 2.65
ROIC/WACC1.18
WACC7.28%
CVE.CA Yearly LT Debt VS Equity VS FCFCVE.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B 20B 25B

2.3 Liquidity

CVE has a Current Ratio of 1.59. 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 (1.59) is better than 73.43% of its industry peers.
A Quick Ratio of 0.95 indicates that CVE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.95, CVE is in line with its industry, outperforming 58.94% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.59
Quick Ratio 0.95
CVE.CA Yearly Current Assets VS Current LiabilitesCVE.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

4

3. Growth

3.1 Past

CVE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.55%.
The Revenue has been growing slightly by 4.77% in the past year.
The Revenue has been growing by 20.16% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-7.55%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-56.7%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y58.03%
Revenue growth 5Y20.16%
Sales Q2Q%-2.25%

3.2 Future

The Earnings Per Share is expected to grow by 7.31% on average over the next years.
Based on estimates for the next years, CVE will show a small growth in Revenue. The Revenue will grow by 0.57% on average per year.
EPS Next Y-11.38%
EPS Next 2Y-0.77%
EPS Next 3Y7.31%
EPS Next 5YN/A
Revenue Next Year7.89%
Revenue Next 2Y0.39%
Revenue Next 3Y0.57%
Revenue Next 5YN/A

3.3 Evolution

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.
CVE.CA Yearly Revenue VS EstimatesCVE.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 20B 40B 60B
CVE.CA Yearly EPS VS EstimatesCVE.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 1 -1 2 -2 3

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 11.19, the valuation of CVE can be described as reasonable.
65.22% of the companies in the same industry are more expensive than CVE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CVE to the average of the S&P500 Index (30.43), we can say CVE is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.50, the valuation of CVE can be described as very reasonable.
CVE's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, CVE is valued rather cheaply.
Industry RankSector Rank
PE 11.19
Fwd PE 10.5
CVE.CA Price Earnings VS Forward Price EarningsCVE.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

CVE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CVE is cheaper than 81.16% of the companies in the same industry.
CVE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CVE is cheaper than 76.81% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.35
EV/EBITDA 4.5
CVE.CA Per share dataCVE.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

The decent profitability rating of CVE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.77%
EPS Next 3Y7.31%

6

5. Dividend

5.1 Amount

CVE has a Yearly Dividend Yield of 3.30%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.30, CVE pays a bit more dividend than its industry peers.
CVE's Dividend Yield is a higher than the S&P500 average which is at 2.30.
Industry RankSector Rank
Dividend Yield 3.3%

5.2 History

On average, the dividend of CVE grows each year by 22.18%, which is quite nice.
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)22.18%
Div Incr Years4
Div Non Decr Years4
CVE.CA Yearly Dividends per shareCVE.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8

5.3 Sustainability

CVE pays out 39.78% of its income as dividend. This is a sustainable payout ratio.
CVE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.78%
EPS Next 2Y-0.77%
EPS Next 3Y7.31%
CVE.CA Yearly Income VS Free CF VS DividendCVE.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B -2B 4B 6B
CVE.CA Dividend Payout.CVE.CA Dividend Payout, showing the Payout Ratio.CVE.CA Dividend Payout.PayoutRetained Earnings

CENOVUS ENERGY INC

TSX:CVE (2/18/2025, 7:00:00 PM)

21.93

+0.1 (+0.46%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)10-31 2024-10-31/bmo
Earnings (Next)02-20 2025-02-20/bmo
Inst Owners54.35%
Inst Owner ChangeN/A
Ins Owners0.92%
Ins Owner ChangeN/A
Market Cap40.00B
Analysts82.61
Price Target30.91 (40.95%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.3%
Yearly Dividend0.54
Dividend Growth(5Y)22.18%
DP39.78%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.55%
Min EPS beat(2)-21.58%
Max EPS beat(2)-5.52%
EPS beat(4)1
Avg EPS beat(4)-4.2%
Min EPS beat(4)-21.58%
Max EPS beat(4)14.37%
EPS beat(8)4
Avg EPS beat(8)-5.42%
EPS beat(12)6
Avg EPS beat(12)-16.49%
EPS beat(16)7
Avg EPS beat(16)-40.06%
Revenue beat(2)2
Avg Revenue beat(2)6.52%
Min Revenue beat(2)3.8%
Max Revenue beat(2)9.24%
Revenue beat(4)3
Avg Revenue beat(4)3.09%
Min Revenue beat(4)-1.92%
Max Revenue beat(4)9.24%
Revenue beat(8)5
Avg Revenue beat(8)2.82%
Revenue beat(12)9
Avg Revenue beat(12)8.06%
Revenue beat(16)12
Avg Revenue beat(16)8.04%
PT rev (1m)-3.67%
PT rev (3m)-5.8%
EPS NQ rev (1m)-42.2%
EPS NQ rev (3m)-61.57%
EPS NY rev (1m)-10.03%
EPS NY rev (3m)-14.88%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)3.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.25%
Valuation
Industry RankSector Rank
PE 11.19
Fwd PE 10.5
P/S 0.72
P/FCF 7.35
P/OCF 3.94
P/B 1.35
P/tB 1.5
EV/EBITDA 4.5
EPS(TTM)1.96
EY8.94%
EPS(NY)2.09
Fwd EY9.52%
FCF(TTM)2.99
FCFY13.61%
OCF(TTM)5.57
OCFY25.38%
SpS30.52
BVpS16.22
TBVpS14.62
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 6.77%
ROE 12.51%
ROCE 11.12%
ROIC 8.62%
ROICexc 9.21%
ROICexgc 9.85%
OM 9.65%
PM (TTM) 6.65%
GM 36.48%
FCFM 9.78%
ROA(3y)6.69%
ROA(5y)3.79%
ROE(3y)13.27%
ROE(5y)7.4%
ROIC(3y)11.67%
ROIC(5y)N/A
ROICexc(3y)12.61%
ROICexc(5y)N/A
ROICexgc(3y)13.56%
ROICexgc(5y)N/A
ROCE(3y)15.05%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.94%
GM growth 5Y-1.93%
F-Score7
Asset Turnover1.02
Health
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.83
Debt/EBITDA 0.92
Cap/Depr 95.75%
Cap/Sales 8.46%
Interest Coverage 250
Cash Conversion 98.69%
Profit Quality 147.04%
Current Ratio 1.59
Quick Ratio 0.95
Altman-Z 2.65
F-Score7
WACC7.28%
ROIC/WACC1.18
Cap/Depr(3y)71.78%
Cap/Depr(5y)58.55%
Cap/Sales(3y)6.43%
Cap/Sales(5y)6.33%
Profit Quality(3y)267.56%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.55%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-56.7%
EPS Next Y-11.38%
EPS Next 2Y-0.77%
EPS Next 3Y7.31%
EPS Next 5YN/A
Revenue 1Y (TTM)4.77%
Revenue growth 3Y58.03%
Revenue growth 5Y20.16%
Sales Q2Q%-2.25%
Revenue Next Year7.89%
Revenue Next 2Y0.39%
Revenue Next 3Y0.57%
Revenue Next 5YN/A
EBIT growth 1Y-12.5%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year96.24%
EBIT Next 3Y29.05%
EBIT Next 5Y16.22%
FCF growth 1Y-25.9%
FCF growth 3YN/A
FCF growth 5Y31.8%
OCF growth 1Y-4.38%
OCF growth 3Y200.23%
OCF growth 5Y27.95%