CENOVUS ENERGY INC (CVE)
CA15135U1093 - Common Stock
Overall CVE gets a fundamental rating of 4 out of 10. We evaluated CVE against 214 industry peers in the Oil, Gas & Consumable Fuels industry. CVE scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. CVE has a valuation in line with the averages, but it does not seem to be growing.
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.
CVE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 7.55%, CVE perfoms like the industry average, outperforming 52.11% of the companies in the same industry.
CVE has a Return On Equity (14.19%) which is in line with its industry peers.
CVE has a Return On Invested Capital (9.13%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CVE is significantly below the industry average of 45.92%.
| 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's Profit Margin of 7.80% is on the low side compared to the rest of the industry. CVE is outperformed by 64.32% of its industry peers.
CVE's Operating Margin of 10.78% is on the low side compared to the rest of the industry. CVE is outperformed by 70.42% of its industry peers.
CVE has a Gross Margin (52.73%) which is in line with its industry peers.
CVE's Gross Margin has declined in the last couple of years.
| 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.
CVE has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CVE has more shares outstanding
CVE has a better debt/assets ratio than last year.
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 has a better Altman-Z score (2.92) than 71.83% of its industry peers.
CVE has a debt to FCF ratio of 3.22. This is a good value and a sign of high solvency as CVE would need 3.22 years to pay back of all of its debts.
The Debt to FCF ratio of CVE (3.22) is better than 67.14% 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 | 3.22 | ||
| 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's Current ratio of 1.56 is fine compared to the rest of the industry. CVE outperforms 68.54% of its industry peers.
A Quick Ratio of 0.91 indicates that CVE may have some problems paying its short term obligations.
CVE has a Quick ratio (0.91) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The earnings per share for CVE have decreased strongly by -28.86% in the last year.
The Revenue for CVE has decreased by -21.96% in the past year. This is quite bad
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
Based on estimates for the next years, CVE will show a small growth in Earnings Per Share. The EPS will grow by 1.63% on average per year.
The Revenue is expected to decrease by -10.17% on average over the next years. This is quite bad
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
CVE is valuated correctly with a Price/Earnings ratio of 13.85.
Compared to the rest of the industry, the Price/Earnings ratio of CVE is on the same level as its industry peers.
When comparing the Price/Earnings ratio of CVE to the average of the S&P500 Index (24.92), we can say CVE is valued slightly cheaper.
CVE is valuated cheaply with a Price/Forward Earnings ratio of 7.93.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CVE indicates a somewhat cheap valuation: CVE is cheaper than 77.93% of the companies listed 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 | 13.85 | ||
| Fwd PE | 7.93 |
4.2 Price Multiples
CVE's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CVE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.78 | ||
| 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.
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%.
Compared to an average industry Dividend Yield of 5.75, CVE has a dividend in line with its industry peers.
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
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 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
NYSE:CVE (4/26/2024, 7:04:00 PM)
After market: 21.46 0 (0%)21.46
+0.18 (+0.85%)
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 Cap40.17B
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)
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EPS beat(4)
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Min EPS beat(4)
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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)
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Min Revenue beat(4)
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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 | 13.85 | ||
| Fwd PE | 7.93 | ||
| 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