CENOVUS ENERGY INC (CVE) Stock Fundamental Analysis
USA - NYSE:CVE - CA15135U1093 - Common Stock
17.08 USD
-0.23 (-1.33%)
17.17 USD
+0.09 (+0.53%)
Overall CVE gets a fundamental rating of 5 out of 10. We evaluated CVE against 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CVE was profitable.
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
The Return On Assets of CVE (4.74%) is better than 62.20% of its industry peers.
CVE has a Return On Equity (9.01%) which is in line with its industry peers.
CVE has a Return On Invested Capital (6.17%) 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 21.70%.
The last Return On Invested Capital (6.17%) 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 | 4.74% | ||
| ROE | 9.01% | ||
| ROIC | 6.17% |
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 (5.13%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CVE has declined.
CVE's Operating Margin of 7.37% is on the low side compared to the rest of the industry. CVE is outperformed by 64.11% of its industry peers.
In the last couple of years the Operating Margin of CVE has grown nicely.
With a Gross Margin value of 31.62%, CVE perfoms like the industry average, outperforming 42.58% 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 | 7.37% | ||
| PM (TTM) | 5.13% | ||
| GM | 31.62% |
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.
Compared to 1 year ago, CVE has less shares outstanding
The number of shares outstanding for CVE has been increased compared to 5 years ago.
Compared to 1 year ago, CVE has a worse debt to assets ratio.
2.2 Solvency
CVE has an Altman-Z score of 2.46. 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 2.46 is fine compared to the rest of the industry. CVE outperforms 75.60% of its industry peers.
The Debt to FCF ratio of CVE is 3.52, which is a good value as it means it would take CVE, 3.52 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.52, CVE is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
CVE has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.34, CVE perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 2.46 |
ROIC/WACC0.83
WACC7.41%
2.3 Liquidity
CVE has a Current Ratio of 1.32. This is a normal value and indicates that CVE is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.32, CVE is doing good in the industry, outperforming 62.20% of the companies in the same industry.
A Quick Ratio of 0.78 indicates that CVE may have some problems paying its short term obligations.
CVE has a Quick ratio (0.78) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.78 |
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%.
The Earnings Per Share has been growing by 33.97% on average over the past years. This is a very strong growth
CVE shows a decrease in Revenue. In the last year, the revenue decreased by -7.82%.
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)-7.82%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-17.24%
3.2 Future
CVE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.27% yearly.
The Revenue is expected to decrease by -3.75% on average over the next years.
EPS Next Y5.31%
EPS Next 2Y-2.19%
EPS Next 3Y13.88%
EPS Next 5Y23.27%
Revenue Next Year-8.89%
Revenue Next 2Y-5.46%
Revenue Next 3Y-3.75%
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
With a Price/Earnings ratio of 16.91, CVE is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as CVE.
When comparing the Price/Earnings ratio of CVE to the average of the S&P500 Index (26.89), we can say CVE is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.27, the valuation of CVE can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CVE is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, CVE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.91 | ||
| Fwd PE | 15.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVE is valued a bit cheaper than 69.38% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CVE indicates a somewhat cheap valuation: CVE is cheaper than 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.39 | ||
| EV/EBITDA | 5.77 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as CVE's earnings are expected to grow with 13.88% in the coming years.
PEG (NY)3.18
PEG (5Y)0.5
EPS Next 2Y-2.19%
EPS Next 3Y13.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.31%, CVE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.15, CVE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, CVE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
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
52.38% 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.
DP52.38%
EPS Next 2Y-2.19%
EPS Next 3Y13.88%
17.08
-0.23 (-1.33%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners51.38%
Inst Owner Change0.39%
Ins Owners0.67%
Ins Owner ChangeN/A
Market Cap30.53B
Revenue(TTM)51.61B
Net Income(TTM)2.65B
Analysts80
Price Target19.64 (14.99%)
Short Float %3.6%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
Yearly Dividend0.6
Dividend Growth(5Y)31.72%
DP52.38%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)101.63%
Min EPS beat(2)25.67%
Max EPS beat(2)177.6%
EPS beat(4)2
Avg EPS beat(4)31.19%
Min EPS beat(4)-72.97%
Max EPS beat(4)177.6%
EPS beat(8)4
Avg EPS beat(8)15.06%
EPS beat(12)6
Avg EPS beat(12)3.89%
EPS beat(16)8
Avg EPS beat(16)-6.48%
Revenue beat(2)0
Avg Revenue beat(2)-4.79%
Min Revenue beat(2)-5.43%
Max Revenue beat(2)-4.15%
Revenue beat(4)1
Avg Revenue beat(4)-4.06%
Min Revenue beat(4)-10.43%
Max Revenue beat(4)3.8%
Revenue beat(8)4
Avg Revenue beat(8)-0.2%
Revenue beat(12)6
Avg Revenue beat(12)3.13%
Revenue beat(16)10
Avg Revenue beat(16)5.12%
PT rev (1m)-0.67%
PT rev (3m)4.51%
EPS NQ rev (1m)25.59%
EPS NQ rev (3m)14.33%
EPS NY rev (1m)6.77%
EPS NY rev (3m)-1.22%
Revenue NQ rev (1m)1.31%
Revenue NQ rev (3m)4.82%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.91 | ||
| Fwd PE | 15.27 | ||
| P/S | 0.83 | ||
| P/FCF | 14.39 | ||
| P/OCF | 5.23 | ||
| P/B | 1.46 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | 5.77 |
EPS(TTM)1.01
EY5.91%
EPS(NY)1.12
Fwd EY6.55%
FCF(TTM)1.19
FCFY6.95%
OCF(TTM)3.27
OCFY19.13%
SpS20.59
BVpS11.73
TBVpS10.56
PEG (NY)3.18
PEG (5Y)0.5
Graham Number16.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 9.01% | ||
| ROCE | 7.82% | ||
| ROIC | 6.17% | ||
| ROICexc | 6.51% | ||
| ROICexgc | 6.95% | ||
| OM | 7.37% | ||
| PM (TTM) | 5.13% | ||
| GM | 31.62% | ||
| FCFM | 5.76% |
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
ROICexgc growth 3Y-0.51%
ROICexgc 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 Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.52 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 105.59% | ||
| Cap/Sales | 10.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 93.66% | ||
| Profit Quality | 112.35% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 2.46 |
F-Score4
WACC7.41%
ROIC/WACC0.83
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 Y5.31%
EPS Next 2Y-2.19%
EPS Next 3Y13.88%
EPS Next 5Y23.27%
Revenue 1Y (TTM)-7.82%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-17.24%
Revenue Next Year-8.89%
Revenue Next 2Y-5.46%
Revenue Next 3Y-3.75%
Revenue Next 5YN/A
EBIT growth 1Y-45.73%
EBIT growth 3Y1.79%
EBIT growth 5Y24.73%
EBIT Next Year100.67%
EBIT Next 3Y28.05%
EBIT Next 5Y17.19%
FCF growth 1Y-34.2%
FCF growth 3Y7.94%
FCF growth 5Y14.96%
OCF growth 1Y-6.52%
OCF growth 3Y15.98%
OCF growth 5Y22.96%
CENOVUS ENERGY INC / CVE FAQ
What is the fundamental rating for CVE stock?
ChartMill assigns a fundamental rating of 5 / 10 to CVE.
What is the valuation status for CVE stock?
ChartMill assigns a valuation rating of 4 / 10 to CENOVUS ENERGY INC (CVE). This can be considered as Fairly Valued.
Can you provide the profitability details for CENOVUS ENERGY INC?
CENOVUS ENERGY INC (CVE) has a profitability rating of 4 / 10.
What is the valuation of CENOVUS ENERGY INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CENOVUS ENERGY INC (CVE) is 16.91 and the Price/Book (PB) ratio is 1.46.
What is the financial health of CENOVUS ENERGY INC (CVE) stock?
The financial health rating of CENOVUS ENERGY INC (CVE) is 5 / 10.