CENOVUS ENERGY INC (CVE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CVE - CA15135U1093 - Common Stock
17.53 USD
+0.61 (+3.61%)
17.49 USD
-0.04 (-0.23%)
CVE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 209 industry peers in the Oil, Gas & Consumable Fuels industry. CVE has an average financial health and profitability rating. CVE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CVE was profitable.
CVE had a positive operating cash flow in the past year.
Of the past 5 years CVE 4 years were profitable.
In the past 5 years CVE always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.83%, CVE is doing good in the industry, outperforming 70.81% of the companies in the same industry.
CVE has a better Return On Equity (11.00%) than 66.99% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.09%, CVE is in the better half of the industry, outperforming 65.07% 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 21.27%.
The last Return On Invested Capital (7.09%) 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 | 5.83% | ||
| ROE | 11% | ||
| ROIC | 7.09% |
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 6.17%, CVE perfoms like the industry average, outperforming 49.28% of the companies in the same industry.
CVE's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 8.46%, CVE perfoms like the industry average, outperforming 40.67% of the companies in the same industry.
In the last couple of years the Operating Margin of CVE has grown nicely.
CVE has a Gross Margin of 33.16%. This is comparable to the rest of the industry: CVE outperforms 44.98% of its industry peers.
CVE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.46% | ||
| PM (TTM) | 6.17% | ||
| GM | 33.16% |
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.
Compared to 5 years ago, CVE has more shares outstanding
Compared to 1 year ago, CVE has a worse debt to assets ratio.
2.2 Solvency
CVE has an Altman-Z score of 2.66. 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 Altman-Z score of 2.66. This is in the better half of the industry: CVE outperforms 77.99% of its industry peers.
The Debt to FCF ratio of CVE is 3.55, which is a good value as it means it would take CVE, 3.55 years of fcf income to pay off all of its debts.
CVE has a Debt to FCF ratio of 3.55. This is in the better half of the industry: CVE outperforms 72.25% 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.
CVE has a Debt to Equity ratio of 0.34. This is comparable to the rest of the industry: CVE outperforms 59.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 2.66 |
ROIC/WACC0.96
WACC7.37%
2.3 Liquidity
A Current Ratio of 1.73 indicates that CVE should not have too much problems paying its short term obligations.
The Current ratio of CVE (1.73) is better than 71.77% of its industry peers.
A Quick Ratio of 1.18 indicates that CVE should not have too much problems paying its short term obligations.
CVE has a better Quick ratio (1.18) than 61.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
CVE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.76%.
Measured over the past years, CVE shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.97% on average per year.
Looking at the last year, CVE shows a decrease in Revenue. The Revenue has decreased by -9.17% 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)-12.76%
EPS 3Y87.2%
EPS 5Y33.97%
EPS Q2Q%71.43%
Revenue 1Y (TTM)-9.17%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-7.4%
3.2 Future
The Earnings Per Share is expected to grow by 26.68% on average over the next years. This is a very strong growth
Based on estimates for the next years, CVE will show a decrease in Revenue. The Revenue will decrease by -4.98% on average per year.
EPS Next Y30.56%
EPS Next 2Y2.22%
EPS Next 3Y10.25%
EPS Next 5Y26.68%
Revenue Next Year-9.46%
Revenue Next 2Y-8.76%
Revenue Next 3Y-4.98%
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.
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
Based on the Price/Earnings ratio of 14.02, the valuation of CVE can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as CVE.
The average S&P500 Price/Earnings ratio is at 26.60. CVE is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.01, the valuation of CVE can be described as correct.
CVE's Price/Forward Earnings is on the same level as the industry average.
CVE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.02 | ||
| Fwd PE | 14.01 |
4.2 Price Multiples
CVE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CVE is cheaper than 71.29% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CVE is valued a bit cheaper than the industry average as 61.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.07 | ||
| EV/EBITDA | 5.57 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.46
PEG (5Y)0.41
EPS Next 2Y2.22%
EPS Next 3Y10.25%
5. Dividend
5.1 Amount
CVE has a Yearly Dividend Yield of 3.41%.
CVE's Dividend Yield is comparable with the industry average which is at 3.93.
CVE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
5.2 History
On average, the dividend of CVE grows each year by 31.72%, which is quite nice.
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
45.02% 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.
DP45.02%
EPS Next 2Y2.22%
EPS Next 3Y10.25%
17.53
+0.61 (+3.61%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners53.06%
Inst Owner Change6.24%
Ins Owners0.63%
Ins Owner ChangeN/A
Market Cap33.14B
Revenue(TTM)50.56B
Net Income(TTM)3.12B
Analysts80
Price Target21.52 (22.76%)
Short Float %6.78%
Short Ratio8.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
Yearly Dividend0.61
Dividend Growth(5Y)31.72%
DP45.02%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)108.83%
Min EPS beat(2)40.05%
Max EPS beat(2)177.6%
EPS beat(4)3
Avg EPS beat(4)42.59%
Min EPS beat(4)-72.97%
Max EPS beat(4)177.6%
EPS beat(8)4
Avg EPS beat(8)19.19%
EPS beat(12)7
Avg EPS beat(12)10.58%
EPS beat(16)9
Avg EPS beat(16)-1.72%
Revenue beat(2)0
Avg Revenue beat(2)-4.56%
Min Revenue beat(2)-4.97%
Max Revenue beat(2)-4.15%
Revenue beat(4)0
Avg Revenue beat(4)-6.25%
Min Revenue beat(4)-10.43%
Max Revenue beat(4)-4.15%
Revenue beat(8)3
Avg Revenue beat(8)-1.58%
Revenue beat(12)5
Avg Revenue beat(12)-0.2%
Revenue beat(16)9
Avg Revenue beat(16)4.49%
PT rev (1m)6.12%
PT rev (3m)8.87%
EPS NQ rev (1m)1.5%
EPS NQ rev (3m)33.38%
EPS NY rev (1m)16.74%
EPS NY rev (3m)32.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.93%
Revenue NY rev (1m)-2.38%
Revenue NY rev (3m)-0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.02 | ||
| Fwd PE | 14.01 | ||
| P/S | 0.9 | ||
| P/FCF | 16.07 | ||
| P/OCF | 5.78 | ||
| P/B | 1.6 | ||
| P/tB | 1.78 | ||
| EV/EBITDA | 5.57 |
EPS(TTM)1.25
EY7.13%
EPS(NY)1.25
Fwd EY7.14%
FCF(TTM)1.09
FCFY6.22%
OCF(TTM)3.03
OCFY17.3%
SpS19.53
BVpS10.96
TBVpS9.83
PEG (NY)0.46
PEG (5Y)0.41
Graham Number17.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.83% | ||
| ROE | 11% | ||
| ROCE | 8.93% | ||
| ROIC | 7.09% | ||
| ROICexc | 7.38% | ||
| ROICexgc | 7.88% | ||
| OM | 8.46% | ||
| PM (TTM) | 6.17% | ||
| GM | 33.16% | ||
| FCFM | 5.59% |
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-Score5
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.55 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 99.6% | ||
| Cap/Sales | 9.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.18% | ||
| Profit Quality | 90.48% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 2.66 |
F-Score5
WACC7.37%
ROIC/WACC0.96
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 Y30.56%
EPS Next 2Y2.22%
EPS Next 3Y10.25%
EPS Next 5Y26.68%
Revenue 1Y (TTM)-9.17%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-7.4%
Revenue Next Year-9.46%
Revenue Next 2Y-8.76%
Revenue Next 3Y-4.98%
Revenue Next 5YN/A
EBIT growth 1Y-20.33%
EBIT growth 3Y1.79%
EBIT growth 5Y24.73%
EBIT Next Year102.61%
EBIT Next 3Y32.13%
EBIT Next 5Y21.02%
FCF growth 1Y-6.18%
FCF growth 3Y7.94%
FCF growth 5Y14.96%
OCF growth 1Y5.9%
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.
Can you provide the valuation status for CENOVUS ENERGY INC?
ChartMill assigns a valuation rating of 5 / 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 5 / 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 14.02 and the Price/Book (PB) ratio is 1.6.
Can you provide the financial health for CVE stock?
The financial health rating of CENOVUS ENERGY INC (CVE) is 5 / 10.