CENOVUS ENERGY INC (CVE) Stock Fundamental Analysis
USA - NYSE:CVE - CA15135U1093 - Common Stock
17.77 USD
+0.07 (+0.4%)
17.8 USD
+0.03 (+0.17%)
Taking everything into account, CVE scores 5 out of 10 in our fundamental rating. CVE was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. CVE has an average financial health and profitability rating. CVE is not valued too expensively and it also shows a decent growth rate. Finally CVE also has an excellent dividend rating.
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.
Of the past 5 years CVE 4 years were profitable.
Each year in the past 5 years CVE had a positive operating cash flow.
1.2 Ratios
CVE has a better Return On Assets (4.74%) than 61.43% of its industry peers.
The Return On Equity of CVE (9.01%) is comparable to the rest of the industry.
CVE has a Return On Invested Capital of 6.17%. This is comparable to the rest of the industry: CVE outperforms 54.29% of its industry peers.
CVE had an Average Return On Invested Capital over the past 3 years of 11.92%. This is significantly below the industry average of 21.71%.
The 3 year average ROIC (11.92%) for CVE is well above the current ROIC(6.17%). The reason for the recent decline needs to be investigated.
| 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.
Looking at the Operating Margin, with a value of 7.37%, CVE is doing worse than 64.76% of the companies in the same industry.
CVE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 31.62%, CVE is in line with its industry, outperforming 42.38% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CVE is still creating some value.
CVE has less shares outstanding than it did 1 year ago.
CVE has more shares outstanding than it did 5 years ago.
CVE has a worse debt/assets ratio than last year.
2.2 Solvency
CVE has an Altman-Z score of 2.49. 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 2.49 is fine compared to the rest of the industry. CVE outperforms 76.19% 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.
The Debt to FCF ratio of CVE (3.52) is better than 74.76% 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.
With a Debt to Equity ratio value of 0.34, CVE perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 2.49 |
ROIC/WACC0.79
WACC7.81%
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.
CVE has a Current ratio of 1.32. This is in the better half of the industry: CVE outperforms 62.86% of its industry peers.
CVE has a Quick Ratio of 1.32. This is a bad value and indicates that CVE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.78, CVE is not doing good in the industry: 60.48% of the companies in the same industry are doing better.
| 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%.
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 decrease in Revenue. The Revenue has decreased by -7.82% in the last year.
CVE shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.88% yearly.
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
Based on estimates for the next years, CVE will show a very strong growth in Earnings Per Share. The EPS will grow by 23.27% on average per year.
Based on estimates for the next years, CVE will show a decrease in Revenue. The Revenue will decrease by -4.67% on average per year.
EPS Next Y1.47%
EPS Next 2Y-1.08%
EPS Next 3Y15.87%
EPS Next 5Y23.27%
Revenue Next Year-8.75%
Revenue Next 2Y-6.1%
Revenue Next 3Y-4.67%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 17.59 indicates a rather expensive valuation of CVE.
CVE's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.32, CVE is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.38, the valuation of CVE can be described as correct.
CVE's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of CVE to the average of the S&P500 Index (22.89), we can say CVE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.59 | ||
| Fwd PE | 15.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CVE indicates a somewhat cheap valuation: CVE is cheaper than 68.10% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CVE is valued a bit cheaper than 63.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.93 | ||
| EV/EBITDA | 5.93 |
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.
A more expensive valuation may be justified as CVE's earnings are expected to grow with 15.87% in the coming years.
PEG (NY)12
PEG (5Y)0.52
EPS Next 2Y-1.08%
EPS Next 3Y15.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.59%, CVE is a good candidate for dividend investing.
CVE's Dividend Yield is a higher than the industry average which is at 6.00.
CVE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
5.2 History
The dividend of CVE is nicely growing with an annual growth rate of 31.72%!
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
CVE pays out 52.38% of its income as dividend. 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-1.08%
EPS Next 3Y15.87%
17.77
+0.07 (+0.4%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners51.38%
Inst Owner Change-1.14%
Ins Owners0.67%
Ins Owner ChangeN/A
Market Cap31.96B
Analysts80
Price Target19.77 (11.25%)
Short Float %6.97%
Short Ratio6.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
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)3.21%
PT rev (3m)2.46%
EPS NQ rev (1m)2.3%
EPS NQ rev (3m)-28.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.83%
Revenue NQ rev (1m)4%
Revenue NQ rev (3m)-5.86%
Revenue NY rev (1m)2.51%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.59 | ||
| Fwd PE | 15.38 | ||
| P/S | 0.86 | ||
| P/FCF | 14.93 | ||
| P/OCF | 5.42 | ||
| P/B | 1.51 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 5.93 |
EPS(TTM)1.01
EY5.68%
EPS(NY)1.16
Fwd EY6.5%
FCF(TTM)1.19
FCFY6.7%
OCF(TTM)3.28
OCFY18.45%
SpS20.65
BVpS11.77
TBVpS10.6
PEG (NY)12
PEG (5Y)0.52
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
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 Turnover0.92
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 | 2.49 |
F-Score4
WACC7.81%
ROIC/WACC0.79
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 Y1.47%
EPS Next 2Y-1.08%
EPS Next 3Y15.87%
EPS Next 5Y23.27%
Revenue 1Y (TTM)-7.82%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-17.24%
Revenue Next Year-8.75%
Revenue Next 2Y-6.1%
Revenue Next 3Y-4.67%
Revenue Next 5YN/A
EBIT growth 1Y-45.73%
EBIT growth 3Y1.79%
EBIT growth 5Y24.73%
EBIT Next Year96.04%
EBIT Next 3Y23.1%
EBIT Next 5Y17.42%
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%