CENOVUS ENERGY INC (CVE) Stock Fundamental Analysis
USA - NYSE:CVE - CA15135U1093 - Common Stock
16.92 USD
+0.17 (+1.01%)
16.99 USD
+0.07 (+0.41%)
Overall CVE gets a fundamental rating of 5 out of 10. We evaluated CVE against 210 industry peers in the Oil, Gas & Consumable Fuels industry. CVE has only an average score on both its financial health and profitability. CVE has a correct valuation and a medium growth rate.
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
CVE has a better Return On Assets (4.74%) than 62.38% of its industry peers.
With a Return On Equity value of 9.01%, CVE perfoms like the industry average, outperforming 59.05% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.17%, CVE is in line with its industry, outperforming 54.76% 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 21.93%.
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.
CVE's Profit Margin has declined in the last couple of years.
CVE has a Operating Margin of 7.37%. This is in the lower half of the industry: CVE underperforms 64.29% 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.
The number of shares outstanding for CVE has been increased compared to 5 years ago.
CVE has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.45 indicates that CVE is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CVE (2.45) is better than 75.71% of its industry peers.
CVE has a debt to FCF ratio of 3.52. This is a good value and a sign of high solvency as CVE would need 3.52 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.52, CVE is doing good in the industry, outperforming 73.33% 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 58.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 2.45 |
ROIC/WACC0.83
WACC7.41%
2.3 Liquidity
A Current Ratio of 1.32 indicates that CVE should not have too much problems paying its short term obligations.
CVE has a better Current ratio (1.32) than 61.43% 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.
CVE has a Quick ratio of 0.78. This is comparable to the rest of the industry: CVE outperforms 40.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The earnings per share for CVE have decreased strongly by -12.76% in the last year.
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 been growing slightly by 3.97% 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)-12.76%
EPS 3Y87.2%
EPS 5Y33.97%
EPS Q2Q%71.43%
Revenue 1Y (TTM)3.97%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-7.4%
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.
CVE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.51% yearly.
EPS Next Y7.08%
EPS Next 2Y-1.25%
EPS Next 3Y14.64%
EPS Next 5Y23.27%
Revenue Next Year-8.83%
Revenue Next 2Y-5.31%
Revenue Next 3Y-3.51%
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
A Price/Earnings ratio of 13.87 indicates a correct valuation of CVE.
CVE's Price/Earnings is on the same level as the industry average.
CVE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.11.
CVE is valuated correctly with a Price/Forward Earnings ratio of 14.84.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CVE is on the same level as its industry peers.
CVE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 14.84 |
4.2 Price Multiples
CVE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CVE is cheaper than 70.48% 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 63.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.26 | ||
| EV/EBITDA | 5.73 |
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 14.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.96
PEG (5Y)0.41
EPS Next 2Y-1.25%
EPS Next 3Y14.64%
5. Dividend
5.1 Amount
CVE has a Yearly Dividend Yield of 3.38%.
CVE's Dividend Yield is comparable with the industry average which is at 6.83.
CVE's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
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-1.25%
EPS Next 3Y14.64%
16.92
+0.17 (+1.01%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners51.38%
Inst Owner Change2%
Ins Owners0.67%
Ins Owner ChangeN/A
Market Cap30.24B
Revenue(TTM)54.28B
Net Income(TTM)2.65B
Analysts80.95
Price Target20.12 (18.91%)
Short Float %4.34%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
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)1.76%
PT rev (3m)7.06%
EPS NQ rev (1m)10.41%
EPS NQ rev (3m)31.46%
EPS NY rev (1m)6.77%
EPS NY rev (3m)-1.22%
Revenue NQ rev (1m)1.31%
Revenue NQ rev (3m)4.9%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)3.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 14.84 | ||
| P/S | 0.82 | ||
| P/FCF | 14.26 | ||
| P/OCF | 5.18 | ||
| P/B | 1.44 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 5.73 |
EPS(TTM)1.22
EY7.21%
EPS(NY)1.14
Fwd EY6.74%
FCF(TTM)1.19
FCFY7.01%
OCF(TTM)3.27
OCFY19.31%
SpS20.59
BVpS11.73
TBVpS10.56
PEG (NY)1.96
PEG (5Y)0.41
Graham Number17.94
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 | 2.45 |
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)-12.76%
EPS 3Y87.2%
EPS 5Y33.97%
EPS Q2Q%71.43%
EPS Next Y7.08%
EPS Next 2Y-1.25%
EPS Next 3Y14.64%
EPS Next 5Y23.27%
Revenue 1Y (TTM)3.97%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-7.4%
Revenue Next Year-8.83%
Revenue Next 2Y-5.31%
Revenue Next 3Y-3.51%
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 13.87 and the Price/Book (PB) ratio is 1.44.
What is the financial health of CENOVUS ENERGY INC (CVE) stock?
The financial health rating of CENOVUS ENERGY INC (CVE) is 5 / 10.