CENOVUS ENERGY INC (CVE) Stock Fundamental Analysis
NYSE:CVE - CA15135U1093 - Common Stock
15.95 USD
-0.53 (-3.22%)
15.9977 USD
+0.05 (+0.3%)
Taking everything into account, CVE scores 5 out of 10 in our fundamental rating. CVE was compared to 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CVE had positive earnings in the past year.
CVE had a positive operating cash flow in the past year.
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
CVE's Return On Assets of 4.74% is fine compared to the rest of the industry. CVE outperforms 60.77% of its industry peers.
CVE has a Return On Equity (9.01%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 6.17%, CVE is in line with its industry, outperforming 53.11% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CVE is significantly below the industry average of 21.91%.
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
With a Profit Margin value of 5.13%, CVE perfoms like the industry average, outperforming 44.98% of the companies in the same industry.
In the last couple of years the Profit Margin of CVE has declined.
CVE has a worse Operating Margin (7.37%) than 65.07% of its industry peers.
In the last couple of years the Operating Margin of CVE has grown nicely.
The Gross Margin of CVE (31.62%) is comparable to the rest of the industry.
CVE's Gross Margin has declined in the last couple of years.
| 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
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.
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
An Altman-Z score of 2.39 indicates that CVE is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.39, CVE is in the better half of the industry, outperforming 74.16% of the companies in the same industry.
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 74.64% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that CVE is not too dependend on debt financing.
CVE has a Debt to Equity ratio of 0.34. This is comparable to the rest of the industry: CVE outperforms 59.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.76
WACC8.07%
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.
Looking at the Current ratio, with a value of 1.32, CVE is in the better half of the industry, outperforming 62.68% of the companies in the same industry.
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.
CVE has a Quick ratio of 0.78. This is in the lower half of the industry: CVE underperforms 61.24% of its industry peers.
| 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.
The Revenue has decreased by -7.82% in the past year.
Measured over the past years, CVE shows a very strong growth in Revenue. The Revenue has been growing by 21.88% on average per year.
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
The Earnings Per Share is expected to grow by 23.27% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -5.65% on average over the next years.
EPS Next Y1.47%
EPS Next 2Y-1.08%
EPS Next 3Y15.87%
EPS Next 5Y23.27%
Revenue Next Year-10.98%
Revenue Next 2Y-8.25%
Revenue Next 3Y-5.65%
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.
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
The Price/Earnings ratio is 15.64, 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 27.06. CVE is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 13.71, CVE is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as CVE.
The average S&P500 Price/Forward Earnings ratio is at 22.69. CVE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.64 | ||
| Fwd PE | 13.71 |
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 69.86% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CVE is valued a bit cheaper than the industry average as 64.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.3 | ||
| EV/EBITDA | 5.4 |
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)10.67
PEG (5Y)0.46
EPS Next 2Y-1.08%
EPS Next 3Y15.87%
5. Dividend
5.1 Amount
CVE has a Yearly Dividend Yield of 3.51%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.11, CVE has a dividend in line with its industry peers.
CVE's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
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
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%
15.95
-0.53 (-3.22%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners52.31%
Inst Owner Change-1.14%
Ins Owners0.66%
Ins Owner ChangeN/A
Market Cap28.69B
Analysts80
Price Target18.95 (18.81%)
Short Float %1.65%
Short Ratio1.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
Yearly Dividend0.61
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)-1.08%
PT rev (3m)-1.25%
EPS NQ rev (1m)-2.42%
EPS NQ rev (3m)-30.25%
EPS NY rev (1m)-4.83%
EPS NY rev (3m)-4.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.48%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)-2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.64 | ||
| Fwd PE | 13.71 | ||
| P/S | 0.77 | ||
| P/FCF | 13.3 | ||
| P/OCF | 4.83 | ||
| P/B | 1.35 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 5.4 |
EPS(TTM)1.02
EY6.39%
EPS(NY)1.16
Fwd EY7.29%
FCF(TTM)1.2
FCFY7.52%
OCF(TTM)3.3
OCFY20.7%
SpS20.8
BVpS11.85
TBVpS10.67
PEG (NY)10.67
PEG (5Y)0.46
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 | 2.39 |
F-Score4
WACC8.07%
ROIC/WACC0.76
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-10.98%
Revenue Next 2Y-8.25%
Revenue Next 3Y-5.65%
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%