CENOVUS ENERGY INC (CVE.CA)
CA15135U1093 - Common Stock
Overall CVE gets a fundamental rating of 5 out of 10. We evaluated CVE against 230 industry peers in the Oil, Gas & Consumable Fuels industry. CVE has only an average score on both its financial health and profitability. CVE has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
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
The Return On Assets of CVE (7.55%) is better than 81.86% of its industry peers.
CVE's Return On Equity of 14.19% is amongst the best of the industry. CVE outperforms 82.33% of its industry peers.
CVE's Return On Invested Capital of 9.13% is amongst the best of the industry. CVE outperforms 84.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CVE is above the industry average of 8.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.55% | ||
| ROE | 14.19% | ||
| ROIC | 9.13% |
ROA(3y)6.69%
ROA(5y)3.79%
ROE(3y)13.27%
ROE(5y)7.4%
ROIC(3y)11.67%
ROIC(5y)N/A
1.3 Margins
CVE has a Profit Margin (7.80%) which is in line with its industry peers.
Looking at the Operating Margin, with a value of 10.78%, CVE is in line with its industry, outperforming 49.77% of the companies in the same industry.
Looking at the Gross Margin, with a value of 52.73%, CVE is in the better half of the industry, outperforming 67.91% of the companies in the same industry.
In the last couple of years the Gross Margin of CVE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.78% | ||
| PM (TTM) | 7.8% | ||
| GM | 52.73% |
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%
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.
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 an improved debt to assets ratio.
2.2 Solvency
CVE has an Altman-Z score of 2.92. 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's Altman-Z score of 2.92 is fine compared to the rest of the industry. CVE outperforms 73.95% of its industry peers.
The Debt to FCF ratio of CVE is 3.22, which is a good value as it means it would take CVE, 3.22 years of fcf income to pay off all of its debts.
CVE has a better Debt to FCF ratio (3.22) than 79.07% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that CVE is not too dependend on debt financing.
The Debt to Equity ratio of CVE (0.34) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.22 | ||
| Altman-Z | 2.92 |
ROIC/WACC1.24
WACC7.39%
2.3 Liquidity
A Current Ratio of 1.56 indicates that CVE should not have too much problems paying its short term obligations.
CVE has a Current ratio of 1.56. This is in the better half of the industry: CVE outperforms 68.37% of its industry peers.
CVE has a Quick Ratio of 1.56. This is a bad value and indicates that CVE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.91, CVE is in line with its industry, outperforming 58.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
CVE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.86%.
CVE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.96%.
Measured over the past years, CVE shows a very strong growth in Revenue. The Revenue has been growing by 20.16% on average per year.
EPS 1Y (TTM)-28.86%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q0%
Revenue 1Y (TTM)-21.96%
Revenue growth 3Y58.03%
Revenue growth 5Y20.16%
Revenue growth Q2Q-6.61%
3.2 Future
The Earnings Per Share is expected to grow by 1.63% on average over the next years.
Based on estimates for the next years, CVE will show a very negative growth in Revenue. The Revenue will decrease by -10.17% on average per year.
EPS Next Y6.53%
EPS Next 2Y-9.48%
EPS Next 3Y1.63%
EPS Next 5YN/A
Revenue Next Year1.54%
Revenue Next 2Y-9.63%
Revenue Next 3Y-10.17%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.83, which indicates a correct valuation of CVE.
Compared to the rest of the industry, the Price/Earnings ratio of CVE is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 24.92. CVE is valued slightly cheaper when compared to this.
CVE is valuated cheaply with a Price/Forward Earnings ratio of 7.92.
CVE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CVE is cheaper than 62.33% of the companies in the same industry.
CVE is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.83 | ||
| Fwd PE | 7.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVE is valued a bit cheaper than the industry average as 72.56% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CVE is valued a bit cheaper than 61.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.76 | ||
| EV/EBITDA | 6.04 |
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.
PEG (NY)2.12
PEG (5Y)N/A
EPS Next 2Y-9.48%
EPS Next 3Y1.63%
5. Dividend
5.1 Amount
CVE has a Yearly Dividend Yield of 1.93%. 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 8.86.
Compared to the average S&P500 Dividend Yield of 2.41, CVE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
5.2 History
The dividend of CVE is nicely growing with an annual growth rate of 22.18%!
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)22.18%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
25.19% of the earnings are spent on dividend by CVE. This is a low number and sustainable payout ratio.
The dividend of CVE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP25.19%
EPS Next 2Y-9.48%
EPS Next 3Y1.63%
CENOVUS ENERGY INC
TSX:CVE (4/26/2024, 6:00:00 PM)
29.32
+0.23 (+0.79%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap54.88B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.83 | ||
| Fwd PE | 7.92 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.12
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.55% | ||
| ROE | 14.19% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.78% | ||
| PM (TTM) | 7.8% | ||
| GM | 52.73% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-28.86%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y6.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-21.96%
Revenue growth 3Y58.03%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y