CENOVUS ENERGY INC (CVE) Stock Fundamental Analysis
NYSE:CVE - New York Stock Exchange, Inc. - CA15135U1093 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CVE. CVE was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. CVE has an average financial health and profitability rating. CVE has a correct valuation and a medium growth rate.
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.
CVE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CVE has a better Return On Assets (4.95%) than 60.10% of its industry peers.
CVE's Return On Equity of 9.30% is in line compared to the rest of the industry. CVE outperforms 56.25% of its industry peers.
CVE's Return On Invested Capital of 7.38% is fine compared to the rest of the industry. CVE outperforms 64.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CVE is significantly below the industry average of 23.51%.
The last Return On Invested Capital (7.38%) 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 | 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
CVE has a Profit Margin (5.15%) which is in line with its industry peers.
In the last couple of years the Profit Margin of CVE has declined.
With a Operating Margin value of 8.54%, CVE is not doing good in the industry: 64.42% of the companies in the same industry are doing better.
CVE's Operating Margin has improved in the last couple of years.
CVE's Gross Margin of 32.07% is in line compared to the rest of the industry. CVE outperforms 43.27% of its industry peers.
In the last couple of years the Gross Margin of CVE has declined.
| 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.
CVE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CVE is higher compared to a year ago.
2.2 Solvency
CVE has an Altman-Z score of 2.43. 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.
With a decent Altman-Z score value of 2.43, CVE is doing good in the industry, outperforming 74.52% of the companies in the same industry.
CVE has a debt to FCF ratio of 3.53. This is a good value and a sign of high solvency as CVE would need 3.53 years to pay back of all of its debts.
The Debt to FCF ratio of CVE (3.53) is better than 73.08% 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.
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 | 3.53 | ||
| Altman-Z | 2.43 |
ROIC/WACC0.93
WACC7.96%
2.3 Liquidity
A Current Ratio of 1.46 indicates that CVE should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.46, CVE is doing good in the industry, outperforming 64.42% of the companies in the same industry.
CVE has a Quick Ratio of 1.46. This is a bad value and indicates that CVE is not financially healthy enough and could expect problems in meeting its short term obligations.
CVE's Quick ratio of 0.84 is in line compared to the rest of the industry. CVE outperforms 42.31% of its industry peers.
| 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 -43.82%.
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.
The Revenue has been growing by 21.88% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-43.82%
EPS 3Y87.2%
EPS 5Y33.97%
EPS Q2Q%-15.09%
Revenue 1Y (TTM)3.97%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-17.24%
3.2 Future
The Earnings Per Share is expected to grow by 19.52% on average over the next years. This is quite good.
Based on estimates for the next years, CVE will show a decrease in Revenue. The Revenue will decrease by -7.58% on average per year.
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
CVE is valuated correctly with a Price/Earnings ratio of 14.75.
CVE's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.11, CVE is valued a bit cheaper.
A Price/Forward Earnings ratio of 8.98 indicates a reasonable valuation of CVE.
70.19% of the companies in the same industry are more expensive than CVE, based on the Price/Forward Earnings ratio.
CVE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.75 | ||
| Fwd PE | 8.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVE is valued a bit cheaper than 75.96% 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 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.25 | ||
| EV/EBITDA | 4.69 |
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's earnings are expected to grow with 19.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.23
PEG (5Y)0.43
EPS Next 2Y18.58%
EPS Next 3Y19.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.72%, CVE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.33, CVE has a dividend in line with 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 | 3.72% |
5.2 History
On average, the dividend of CVE grows each year by 31.72%, which is quite nice.
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
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%
15.05
+0.22 (+1.48%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners52.31%
Inst Owner Change-2.91%
Ins Owners0.66%
Ins Owner ChangeN/A
Market Cap27.18B
Analysts79.09
Price Target19.15 (27.24%)
Short Float %1.24%
Short Ratio1.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
Yearly Dividend0.61
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)-0.72%
PT rev (3m)2.41%
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 | 14.75 | ||
| Fwd PE | 8.98 | ||
| P/S | 0.69 | ||
| P/FCF | 12.25 | ||
| P/OCF | 4.53 | ||
| P/B | 1.25 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 4.69 |
EPS(TTM)1.02
EY6.78%
EPS(NY)1.68
Fwd EY11.14%
FCF(TTM)1.23
FCFY8.16%
OCF(TTM)3.32
OCFY22.09%
SpS21.8
BVpS12.09
TBVpS10.91
PEG (NY)2.23
PEG (5Y)0.43
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 | 2.43 |
F-Score4
WACC7.96%
ROIC/WACC0.93
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)-43.82%
EPS 3Y87.2%
EPS 5Y33.97%
EPS Q2Q%-15.09%
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%-17.24%
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%