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 209 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.
CVE had positive earnings in 4 of the past 5 years.
Each year in the past 5 years CVE had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.95%, CVE is doing good in the industry, outperforming 78.47% of the companies in the same industry.
CVE has a better Return On Equity (9.30%) than 74.16% of its industry peers.
The Return On Invested Capital of CVE (7.38%) is better than 77.51% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CVE is above the industry average of 7.47%.
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
The Profit Margin of CVE (5.15%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CVE has declined.
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.
With a Gross Margin value of 32.07%, CVE perfoms like the industry average, outperforming 51.20% 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
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
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.
Looking at the Altman-Z score, with a value of 2.39, CVE is in the better half of the industry, outperforming 71.77% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 3.53, CVE is in the better half of the industry, outperforming 79.90% of the companies in the same industry.
A Debt/Equity ratio of 0.34 indicates that CVE is not too dependend on debt financing.
CVE's Debt to Equity ratio of 0.34 is in line compared to the rest of the industry. CVE outperforms 55.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 2.39 |
ROIC/WACC1.07
WACC6.92%
2.3 Liquidity
A Current Ratio of 1.46 indicates that CVE should not have too much problems paying its short term obligations.
CVE has a better Current ratio (1.46) than 71.29% of its industry peers.
A Quick Ratio of 0.84 indicates that CVE may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.84, CVE is doing good in the industry, outperforming 62.68% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing by 33.97% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 1.57% in the past year.
The Revenue has been growing by 21.88% on average over the past years. This is a very strong growth!
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.
CVE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.74% yearly.
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
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.
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 13.53, CVE is valued correctly.
Based on the Price/Earnings ratio, CVE is valued a bit cheaper than 65.55% of the companies in the same industry.
When comparing the Price/Earnings ratio of CVE to the average of the S&P500 Index (26.31), we can say CVE is valued slightly cheaper.
With a Price/Forward Earnings ratio of 8.74, the valuation of CVE can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CVE is valued a bit cheaper than 66.03% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CVE to the average of the S&P500 Index (22.13), we can say CVE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.53 | ||
| Fwd PE | 8.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVE is valued cheaper than 85.17% 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 70.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.04 | ||
| EV/EBITDA | 4.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CVE does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of CVE 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)2.04
PEG (5Y)0.4
EPS Next 2Y18.58%
EPS Next 3Y19.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.67%, CVE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.54, 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
5.2 History
On average, the dividend of CVE grows each year by 31.72%, 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)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.
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 (6/13/2025, 7:00:00 PM)
20.16
+0.55 (+2.8%)
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 Cap36.74B
Analysts79.09
Price Target26.32 (30.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
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)-2.23%
PT rev (3m)-11.35%
EPS NQ rev (1m)-33.97%
EPS NQ rev (3m)-39.39%
EPS NY rev (1m)0%
EPS NY rev (3m)-19.07%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.53 | ||
| Fwd PE | 8.74 | ||
| P/S | 0.68 | ||
| P/FCF | 12.04 | ||
| P/OCF | 4.45 | ||
| P/B | 1.22 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 4.51 |
EPS(TTM)1.49
EY7.39%
EPS(NY)2.31
Fwd EY11.44%
FCF(TTM)1.68
FCFY8.31%
OCF(TTM)4.53
OCFY22.48%
SpS29.73
BVpS16.48
TBVpS14.87
PEG (NY)2.04
PEG (5Y)0.4
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
WACC6.92%
ROIC/WACC1.07
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 5Y16.97%
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%