CENOVUS ENERGY INC (CVE) Stock Fundamental Analysis
NYSE:CVE - New York Stock Exchange, Inc. - CA15135U1093 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CVE. CVE was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. CVE has only an average score on both its financial health and profitability. 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.
CVE had a positive operating cash flow in the past year.
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 Return On Assets of 4.95%. This is comparable to the rest of the industry: CVE outperforms 59.62% of its industry peers.
CVE has a Return On Equity (9.30%) which is in line with its industry peers.
CVE's Return On Invested Capital of 7.38% is fine compared to the rest of the industry. CVE outperforms 61.97% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CVE is significantly below the industry average of 23.55%.
The last Return On Invested Capital (7.38%) 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 | 4.95% | ||
| ROE | 9.3% | ||
| ROIC | 7.38% |
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
CVE has a Profit Margin (5.15%) which is in line with its industry peers.
CVE's Profit Margin has declined in the last couple of years.
CVE's Operating Margin of 8.54% is on the low side compared to the rest of the industry. CVE is outperformed by 63.85% of its industry peers.
CVE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 32.07%, CVE is in line with its industry, outperforming 42.25% of the companies in the same industry.
CVE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.54% | ||
| PM (TTM) | 5.15% | ||
| GM | 32.07% |
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.
The number of shares outstanding for CVE has been reduced compared to 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
CVE has an Altman-Z score of 2.39. 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 better Altman-Z score (2.39) than 73.24% of its industry peers.
CVE has a debt to FCF ratio of 3.53. This is a good value and a sign of high solvency as CVE would need 3.53 years to pay back of all of its debts.
CVE's Debt to FCF ratio of 3.53 is fine compared to the rest of the industry. CVE outperforms 74.18% 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 58.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.92
WACC7.99%
2.3 Liquidity
A Current Ratio of 1.46 indicates that CVE should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.46, CVE is in the better half of the industry, outperforming 64.79% of the companies in the same industry.
CVE has a Quick Ratio of 1.46. 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 0.84, CVE perfoms like the industry average, outperforming 40.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The earnings per share for CVE have decreased strongly by -38.43% in the last year.
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 small growth in Revenue. The Revenue has grown by 1.57% 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)-38.43%
EPS 3Y87.2%
EPS 5Y33.97%
EPS Q2Q%-24.19%
Revenue 1Y (TTM)1.57%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-0.73%
3.2 Future
CVE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.52% yearly.
Based on estimates for the next years, CVE will show a decrease in Revenue. The Revenue will decrease by -5.74% on average per year.
EPS Next Y6.62%
EPS Next 2Y18.58%
EPS Next 3Y19.52%
EPS Next 5YN/A
Revenue Next Year-8.98%
Revenue Next 2Y-4.96%
Revenue Next 3Y-5.74%
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
A Price/Earnings ratio of 13.44 indicates a correct valuation of CVE.
CVE's Price/Earnings ratio is in line with the industry average.
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 8.66, the valuation of CVE can be described as reasonable.
CVE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CVE is cheaper than 74.65% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.39. CVE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.44 | ||
| Fwd PE | 8.66 |
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 74.18% 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 68.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.92 | ||
| EV/EBITDA | 4.52 |
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 19.52% in the coming years.
PEG (NY)2.03
PEG (5Y)0.4
EPS Next 2Y18.58%
EPS Next 3Y19.52%
5. Dividend
5.1 Amount
CVE has a Yearly Dividend Yield of 4.43%, which is a nice return.
CVE's Dividend Yield is comparable with the industry average which is at 6.74.
Compared to an average S&P500 Dividend Yield of 2.39, CVE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
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
CVE pays out 57.77% of its income as dividend. This is a bit on the high side, but may be sustainable.
CVE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP57.77%
EPS Next 2Y18.58%
EPS Next 3Y19.52%
NYSE:CVE (6/13/2025, 12:00:02 PM)
14.645
+0.38 (+2.63%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners50.86%
Inst Owner Change3.44%
Ins Owners0.81%
Ins Owner ChangeN/A
Market Cap26.69B
Analysts79.09
Price Target19.19 (31.03%)
Short Float %1.01%
Short Ratio1.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
Yearly Dividend0.61
Dividend Growth(5Y)31.72%
DP57.77%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-23.65%
Min EPS beat(2)-72.97%
Max EPS beat(2)25.67%
EPS beat(4)1
Avg EPS beat(4)-18.6%
Min EPS beat(4)-72.97%
Max EPS beat(4)25.67%
EPS beat(8)4
Avg EPS beat(8)-6.58%
EPS beat(12)6
Avg EPS beat(12)-10.49%
EPS beat(16)7
Avg EPS beat(16)-21.6%
Revenue beat(2)0
Avg Revenue beat(2)-7.93%
Min Revenue beat(2)-10.43%
Max Revenue beat(2)-5.43%
Revenue beat(4)2
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-10.43%
Max Revenue beat(4)9.24%
Revenue beat(8)4
Avg Revenue beat(8)-0.09%
Revenue beat(12)7
Avg Revenue beat(12)5.76%
Revenue beat(16)11
Avg Revenue beat(16)6.01%
PT rev (1m)-1.65%
PT rev (3m)-6.57%
EPS NQ rev (1m)-33.97%
EPS NQ rev (3m)-39.39%
EPS NY rev (1m)0%
EPS NY rev (3m)-19.07%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.44 | ||
| Fwd PE | 8.66 | ||
| P/S | 0.67 | ||
| P/FCF | 11.92 | ||
| P/OCF | 4.41 | ||
| P/B | 1.21 | ||
| P/tB | 1.34 | ||
| EV/EBITDA | 4.52 |
EPS(TTM)1.09
EY7.44%
EPS(NY)1.69
Fwd EY11.55%
FCF(TTM)1.23
FCFY8.39%
OCF(TTM)3.32
OCFY22.7%
SpS21.8
BVpS12.09
TBVpS10.91
PEG (NY)2.03
PEG (5Y)0.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 9.3% | ||
| ROCE | 9.36% | ||
| ROIC | 7.38% | ||
| ROICexc | 7.81% | ||
| ROICexgc | 8.33% | ||
| OM | 8.54% | ||
| PM (TTM) | 5.15% | ||
| GM | 32.07% | ||
| FCFM | 5.64% |
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 Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.53 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 104.37% | ||
| Cap/Sales | 9.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.89% | ||
| Profit Quality | 109.35% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 2.39 |
F-Score4
WACC7.99%
ROIC/WACC0.92
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)-38.43%
EPS 3Y87.2%
EPS 5Y33.97%
EPS Q2Q%-24.19%
EPS Next Y6.62%
EPS Next 2Y18.58%
EPS Next 3Y19.52%
EPS Next 5YN/A
Revenue 1Y (TTM)1.57%
Revenue growth 3Y5.4%
Revenue growth 5Y21.88%
Sales Q2Q%-0.73%
Revenue Next Year-8.98%
Revenue Next 2Y-4.96%
Revenue Next 3Y-5.74%
Revenue Next 5YN/A
EBIT growth 1Y-29.74%
EBIT growth 3Y1.79%
EBIT growth 5Y24.73%
EBIT Next Year96.04%
EBIT Next 3Y23.1%
EBIT Next 5Y16.97%
FCF growth 1Y-46.33%
FCF growth 3Y7.94%
FCF growth 5Y14.96%
OCF growth 1Y-15.29%
OCF growth 3Y15.98%
OCF growth 5Y22.96%