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

Adequate balance sheet second-rate dividend payer.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

CVE

0.5%

CA Oil and Gas

0.6%

CA Market


1 Year Return

15.8%

CVE

-0.8%

CA Oil and Gas

7.4%

CA Market

Return vs Industry: CVE exceeded the Canadian Oil and Gas industry which returned -0.8% over the past year.

Return vs Market: CVE exceeded the Canadian Market which returned 7.4% over the past year.


Shareholder returns

CVEIndustryMarket
7 Day-0.9%0.5%0.6%
30 Day8.9%5.9%3.3%
90 Day12.1%7.8%3.6%
1 Year17.8%15.8%3.6%-0.8%11.0%7.4%
3 Year-37.2%-40.3%-11.3%-20.3%18.1%7.5%
5 Year-51.0%-56.3%-18.8%-31.1%27.1%8.5%

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?

9.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CVE (CA$12.27) is trading below our estimate of fair value (CA$13.54)

Significantly Below Fair Value: CVE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CVE is poor value based on its PE Ratio (20.6x) compared to the Oil and Gas industry average (9.7x).

PE vs Market: CVE is poor value based on its PE Ratio (20.6x) compared to the Canadian market (14.5x).


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 overvalued based on its PB Ratio (0.8x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

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

-77.7%

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 (-77.7% per year).

Earnings vs Market: CVE's earnings are forecast to decline over the next 3 years (-77.7% 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 (-9.8% per year).

High Growth Revenue: CVE's revenue is forecast to decline over the next 3 years (-9.8% 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 (3%).


Next Steps

Past Performance

How has Cenovus Energy performed over the past 5 years?

-22.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CVE has large one-off items impacting its financial results.

Growing Profit Margin: CVE's current net profit margins (3.7%) are higher than last year (-11%).


Past Earnings Growth Analysis

Earnings Trend: CVE's earnings have declined by -22.8% 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 (15.2%).


Return on Equity

High ROE: CVE's Return on Equity (3.8%) is considered low.


Return on Assets


Return on Capital Employed


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) exceeds its short term liabilities (CA$2.9B)

Long Term Liabilities: CVE's short term assets (CA$3.3B) do not cover its long term liabilities (13.6B)


Debt to Equity History and Analysis

Debt Level: CVE's debt to equity ratio (37.7%) is considered satisfactory.

Reducing Debt: CVE's debt to equity ratio has reduced from 50.3% to 37.7% over the past 5 years.

Debt Coverage: CVE's debt is well covered by operating cash flow (41.9%).

Interest Coverage: Insufficient data to determine if CVE's interest payments on its debt are well covered by EBIT.


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 0.4x debt).


Next Steps

Dividend

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

2.04%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Cenovus Energy before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.0%marketbottom25%2.0%markettop25%5.7%industryaverage4.6%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: CVE's dividend (2.04%) is higher than the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: CVE's dividend (2.04%) is low compared to the top 25% of dividend payers in the Canadian market (5.66%).


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 reasonably low payout ratio (33.6%), CVE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CVE's dividends in 3 years are forecast to be well covered by earnings (35.8% payout ratio).


Next Steps

Management

What is the CEO of Cenovus Energy's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Alex Pourbaix (53yo)

2yrs

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 ($USD4.96M) is about average for companies of similar size in the Canadian market ($USD6.86M).

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


Management Age and Tenure

1.9yrs

Average Tenure

Experienced Management: CVE's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

2.8yrs

Average Tenure

66yo

Average Age

Experienced Board: CVE's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyCA$96,30009 Oct 19
Harold Kvisle
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,000
Max PriceCA$10.70
BuyCA$414,00007 Oct 19
Keith A. MacPhail
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares36,000
Max PriceCA$11.50
BuyCA$193,19524 Sep 19
Jonathan McKenzie
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares15,000
Max PriceCA$12.88
BuyCA$117,30303 Sep 19
Keith Chiasson
EntityIndividual
Role
Senior Key Executive
Executive Vice-President of Downstream
Shares10,000
Max PriceCA$11.73
BuyCA$223,20008 Aug 19
M. Lewis
EntityIndividual
Shares20,000
Max PriceCA$11.16
BuyCA$370,50006 Aug 19
Keith A. MacPhail
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares30,000
Max PriceCA$12.35
BuyCA$120,50001 Aug 19
Jonathan McKenzie
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares10,000
Max PriceCA$12.05
BuyCA$188,63604 Jun 19
Keith Chiasson
EntityIndividual
Role
Senior Key Executive
Executive Vice-President of Downstream
Shares16,850
Max PriceCA$11.20
SellCA$188,63604 Jun 19
Keith Chiasson
EntityIndividual
Role
Senior Key Executive
Executive Vice-President of Downstream
Shares16,850
Max PriceCA$11.20
SellCA$4727 May 19
Kam Sandhar
EntityIndividual
Role
Head of Corporate Development
Senior Vice President of Strategy & Corporate Development
Shares4
Max PriceCA$11.74
BuyCA$120,30006 May 19
Jonathan McKenzie
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares10,000
Max PriceCA$12.03
BuyCA$188,44029 Apr 19
Keith A. MacPhail
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares14,000
Max PriceCA$13.46
BuyCA$180,13305 Apr 19
Jonathan McKenzie
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares15,000
Max PriceCA$12.01
BuyCA$109,00008 Mar 19
Jonathan McKenzie
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares10,000
Max PriceCA$10.90
BuyCA$58,64405 Mar 19
Richard Marcogliese
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceCA$11.73
BuyCA$176,91401 Mar 19
Rhonda Zygocki
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceCA$11.79
BuyCA$172,80020 Feb 19
Jonathan McKenzie
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares15,000
Max PriceCA$11.52
BuyCA$113,90020 Feb 19
Keith A. MacPhail
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceCA$11.39
BuyCA$113,41009 Jan 19
Keith A. MacPhail
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares11,000
Max PriceCA$10.31
BuyCA$45,75028 Dec 18
Harold Kvisle
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceCA$9.15
BuyCA$19,99921 Dec 18
Kam Sandhar
EntityIndividual
Role
Head of Corporate Development
Senior Vice President of Strategy & Corporate Development
Shares2,149
Max PriceCA$9.31
BuyCA$982,80020 Dec 18
Alexander Pourbaix
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares108,000
Max PriceCA$9.10
BuyCA$52,79513 Dec 18
Alan Reid
EntityIndividual
Role
Chief Legal Officer
Executive VP of Stakeholder Engagement
Shares5,000
Max PriceCA$10.56
BuyCA$19,99527 Nov 18
Kam Sandhar
EntityIndividual
Role
Head of Corporate Development
Senior Vice President of Strategy & Corporate Development
Shares2,121
Max PriceCA$9.43
BuyCA$46,96527 Nov 18
Richard Marcogliese
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceCA$9.39
BuyCA$255,75021 Nov 18
Jonathan McKenzie
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares25,000
Max PriceCA$10.23

Ownership Breakdown

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


Management Team

  • Alex Pourbaix (53yo)

    CEO, President & Director

    • Tenure: 2yrs
    • Compensation: CA$6.56m
  • Sherry Wendt

    Director of Investor Relations

    • Tenure: 0yrs
  • Kam Sandhar

    Senior Vice President of Strategy & Corporate Development

    • Tenure: 0yrs
  • Jon McKenzie (51yo)

    Executive VP & CFO

    • Tenure: 1.5yrs
    • Compensation: CA$5.46m
  • Harbir Chhina

    Executive VP & CTO

    • Tenure: 2.6yrs
    • Compensation: CA$2.94m
  • Al Reid

    Executive VP of Stakeholder Engagement

    • Tenure: 3.9yrs
    • Compensation: CA$2.51m
  • J. Zieglgansberger

    Executive Vice-President of Upstream

    • Tenure: 1.8yrs
    • Compensation: CA$2.58m
  • Rhona Delfrari

    Director of External Communications

    • Tenure: 0yrs
  • Sarah Walters

    Senior Vice President of Corporate Services

    • Tenure: 1.9yrs
  • Keith Chiasson

    Executive Vice-President of Downstream

    • Tenure: 1.9yrs

Board Members

  • Steve Leer (66yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: CA$214.84k
  • Pat Daniel (73yo)

    Independent Chairman of the Board

    • Tenure: 2.6yrs
    • Compensation: CA$338.32k
  • Hal Kvisle (66yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: CA$178.15k
  • Claude Mongeau (57yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: CA$214.00k
  • Keith A. MacPhail (62yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: CA$178.15k
  • Alex Pourbaix (53yo)

    CEO, President & Director

    • Tenure: 2yrs
    • Compensation: CA$6.56m
  • Rhonda Zygocki (61yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: CA$217.41k
  • Wayne Thomson (68yo)

    Independent Director

    • Tenure: 10yrs
    • Compensation: CA$209.09k
  • Rich Marcogliese (66yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: CA$210.59k
  • Sue Dabarno (66yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: CA$214.00k

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:
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Market Cap: CA$15.078b
  • Shares outstanding: 1.23b
  • Website: https://www.cenovus.com

Number of Employees


Location

  • Cenovus Energy Inc.
  • 2600, 500 Centre Street SE
  • Calgary
  • Alberta
  • T2G 1A6
  • 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’s Oil Sands segment develop ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/18 00:22
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.