TSX:CVE

Stock Analysis Report

Cenovus Energy

Executive Summary

Cenovus Energy Inc., together with its subsidiaries, develops, produces, and markets crude oil, natural gas liquids, and natural gas in Canada and the United States.


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Cenovus Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CVE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.7%

CVE

5.4%

CA Oil and Gas

6.4%

CA Market


1 Year Return

-79.7%

CVE

-46.4%

CA Oil and Gas

-25.5%

CA Market

Return vs Industry: CVE underperformed the Canadian Oil and Gas industry which returned -46.4% over the past year.

Return vs Market: CVE underperformed the Canadian Market which returned -25.5% over the past year.


Shareholder returns

CVEIndustryMarket
7 Day-1.7%5.4%6.4%
30 Day-76.2%-40.5%-22.6%
90 Day-82.1%-47.0%-26.8%
1 Year-79.1%-79.7%-43.8%-46.4%-23.2%-25.5%
3 Year-83.4%-84.4%-48.2%-54.0%-15.7%-23.5%
5 Year-88.1%-89.3%-49.0%-57.6%-3.1%-17.4%

Price Volatility Vs. Market

How volatile is Cenovus Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cenovus Energy undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CVE (CA$2.35) is trading below our estimate of fair value (CA$13.76)

Significantly Below Fair Value: CVE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CVE is good value based on its PE Ratio (1.3x) compared to the Oil and Gas industry average (6x).

PE vs Market: CVE is good value based on its PE Ratio (1.3x) compared to the Canadian market (10.6x).


Price to Earnings Growth Ratio

PEG Ratio: CVE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CVE is good value based on its PB Ratio (0.2x) compared to the CA Oil and Gas industry average (0.4x).


Next Steps

Future Growth

How is Cenovus Energy forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-91.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CVE's earnings are forecast to decline over the next 3 years (-91.4% per year).

Earnings vs Market: CVE's earnings are forecast to decline over the next 3 years (-91.4% per year).

High Growth Earnings: CVE's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CVE's revenue is expected to decline over the next 3 years (-9.6% per year).

High Growth Revenue: CVE's revenue is forecast to decline over the next 3 years (-9.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CVE's Return on Equity is forecast to be low in 3 years time (2.1%).


Next Steps

Past Performance

How has Cenovus Energy performed over the past 5 years?

-10.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CVE has high quality earnings.

Growing Profit Margin: CVE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CVE's earnings have declined by -10.2% per year over the past 5 years.

Accelerating Growth: CVE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CVE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-2.5%).


Return on Equity

High ROE: CVE's Return on Equity (11.4%) is considered low.


Next Steps

Financial Health

How is Cenovus Energy's financial position?


Financial Position Analysis

Short Term Liabilities: CVE's short term assets (CA$3.3B) exceed its short term liabilities (CA$2.5B).

Long Term Liabilities: CVE's short term assets (CA$3.3B) do not cover its long term liabilities (CA$14.0B).


Debt to Equity History and Analysis

Debt Level: CVE's debt to equity ratio (34.9%) is considered satisfactory.

Reducing Debt: CVE's debt to equity ratio has reduced from 53.6% to 34.9% over the past 5 years.

Debt Coverage: CVE's debt is well covered by operating cash flow (49%).

Interest Coverage: CVE's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet

Inventory Level: CVE has a high level of physical assets or inventory.

Debt Coverage by Assets: CVE's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Cenovus Energy's current dividend yield, its reliability and sustainability?

10.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CVE's dividend (10.64%) is higher than the bottom 25% of dividend payers in the Canadian market (2.73%).

High Dividend: CVE's dividend (10.64%) is in the top 25% of dividend payers in the Canadian market (8.76%)


Stability and Growth of Payments

Stable Dividend: CVE's dividend payments have been volatile in the past 10 years.

Growing Dividend: CVE's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.9%), CVE's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CVE's dividends in 3 years are forecast to be covered by earnings (61.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Alex Pourbaix (53yo)

2.33s

Tenure

CA$6,558,485

Compensation

Mr. Alexander J. Pourbaix, also known as Alex, serves as President, Chief Executive Officer and director of Cenovus Energy Inc. since November 6, 2017. He has been Director of Canadian Utilities Limited si ...


CEO Compensation Analysis

Compensation vs Market: Alex's total compensation ($USD4.66M) is above average for companies of similar size in the Canadian market ($USD2.48M).

Compensation vs Earnings: Alex's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Alexander Pourbaix
CEO, President & Director2.33yrsCA$6.56m0.056% CA$1.6m
Jonathan McKenzie
Executive VP & CFO1.83yrsCA$5.46m0.0085% CA$245.5k
Harbir Chhina
Executive VP & CTO2.92yrsCA$2.94m0.044% CA$1.3m
Alan Reid
Executive VP of Stakeholder Engagement8.17yrsCA$2.51m0.0060% CA$173.3k
Joseph Zieglgansberger
Executive Vice-President of Strategy & Corporate Development0.17yrCA$2.58m0.0076% CA$220.3k
Sherry Wendt
Director of Investor Relationsno datano datano data
Rhona Delfrari
Director of External Communicationsno datano datano data
Kam Sandhar
Senior Vice-President of Deep Basin0.17yrno data0.0015% CA$42.2k
Sarah Walters
Senior Vice President of Corporate Services2.25yrsno data0.00076% CA$21.9k
Keith Chiasson
Executive Vice-President of Downstream2.25yrsno data0.0055% CA$159.1k

2.3yrs

Average Tenure

Experienced Management: CVE's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alexander Pourbaix
CEO, President & Director2.33yrsCA$6.56m0.056% CA$1.6m
Steven Leer
Independent Director4.92yrsCA$214.84k0.00016% CA$4.6k
Patrick Daniel
Independent Chairman of the Board2.92yrsCA$338.32k0.0060% CA$174.7k
Harold Kvisle
Independent Director1.92yrsCA$178.15k0.0081% CA$235.1k
Claude Mongeau
Independent Director3.25yrsCA$214.00k0.014% CA$397.1k
Keith A. MacPhail
Independent Director1.92yrsCA$178.15k0.031% CA$907.1k
Rhonda Zygocki
Independent Director3.92yrsCA$217.41k0.0033% CA$94.1k
Wayne Thomson
Independent Director10.33yrsCA$209.09k0.00017% CA$4.9k
Richard Marcogliese
Independent Director3.92yrsCA$210.59k0.0049% CA$140.9k
Susan Dabarno
Independent Director2.92yrsCA$214.00k0.0024% CA$70.8k

3.1yrs

Average Tenure

66yo

Average Age

Experienced Board: CVE's board of directors are considered experienced (3.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CVE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cenovus Energy Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cenovus Energy Inc.
  • Ticker: CVE
  • Exchange: TSX
  • Founded: 2009
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Market Cap: CA$2.888b
  • Shares outstanding: 1.23b
  • Website: https://www.cenovus.com

Number of Employees


Location

  • Cenovus Energy Inc.
  • 225, 6 Avenue SW
  • PO Box 766
  • Calgary
  • Alberta
  • T2P 0M5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CVENYSE (New York Stock Exchange)YesCommon SharesUSUSDNov 2009
CVETSX (The Toronto Stock Exchange)YesCommon SharesCACADNov 2009
CXDDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 2009

Biography

Cenovus Energy Inc., together with its subsidiaries, develops, produces, and markets crude oil, natural gas liquids, and natural gas in Canada and the United States. The company operates through Oil Sands, Deep Basin, and Refining and Marketing segments. The Oil Sands segment develops and produces bitumen in northeast Alberta. Its bitumen assets include Foster Creek, Christina Lake, and Narrows Lake, as well as other projects in the early stages of development. The Deep Basin segment holds assets primarily located in Elmworth-Wapiti, Kaybob-Edson, and Clearwater operating areas of British Columbia and Alberta, as well as various interests in natural gas processing facilities. The Refining and Marketing segment transports, sells, and refines crude oil into petroleum and chemical products. This segment owns a 50% ownership in Wood River and Borger refineries located in the United States; and owns and operates a crude-by-rail terminal in Alberta. Cenovus Energy Inc. was founded in 2009 and is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 02:34
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.