Cenovus Energy Inc.
Cenovus Energy Inc. Fundamental Analysis
Cenovus Energy Inc. (CVE) shows moderate financial fundamentals with a PE ratio of 17.67, profit margin of 5.66%, and ROE of 10.69%. The company generates $58.5B in annual revenue with moderate year-over-year growth of 3.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CVE's fundamental strength across five key dimensions:
Efficiency Score
WeakCVE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCVE trades at attractive valuation levels.
Growth Score
WeakCVE faces weak or negative growth trends.
Financial Health Score
ExcellentCVE maintains a strong and stable balance sheet.
Profitability Score
WeakCVE struggles to sustain strong margins.
Key Financial Metrics
Is CVE Expensive or Cheap?
P/E Ratio
CVE trades at 17.67 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CVE's PEG of 0.62 indicates potential undervaluation.
Price to Book
The market values Cenovus Energy Inc. at 1.96 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.42 times EBITDA. This is generally considered low.
How Well Does CVE Make Money?
Net Profit Margin
For every $100 in sales, Cenovus Energy Inc. keeps $5.66 as profit after all expenses.
Operating Margin
Core operations generate 10.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.69 in profit for every $100 of shareholder equity.
ROA
Cenovus Energy Inc. generates $5.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cenovus Energy Inc. produces operating cash flow of $8.66B, showing steady but balanced cash generation.
Free Cash Flow
Cenovus Energy Inc. produces free cash flow of $3.59B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.90 in free cash annually.
FCF Yield
CVE converts 5.83% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.67
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.62
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.96
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.05
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.35
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.73
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How CVE Stacks Against Its Sector Peers
| Metric | CVE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.67 | 20.19 | Better (Cheaper) |
| ROE | 10.69% | 1019.00% | Weak |
| Net Margin | 5.66% | -44017.00% (disorted) | Weak |
| Debt/Equity | 0.35 | -0.65 (disorted) | Distorted |
| Current Ratio | 1.73 | 4.60 | Neutral |
| ROA | 5.86% | -11655350.00% (disorted) | Weak |
CVE outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cenovus Energy Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
78.83%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-4.78%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
86.93%
Industry Style: Cyclical, Value, Commodity
High Growth