TSX:CVE

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Cenovus Energy

Market Cap

CA$24.4b

Last Updated

2021/06/25 02:06 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

High growth potential and fair value.


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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CVE's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

0.9%

CVE

1.3%

CA Oil and Gas

0.4%

CA Market


1 Year Return

90.5%

CVE

48.2%

CA Oil and Gas

35.8%

CA Market

Return vs Industry: CVE exceeded the Canadian Oil and Gas industry which returned 47.4% over the past year.

Return vs Market: CVE exceeded the Canadian Market which returned 36.1% over the past year.


Shareholder returns

CVEIndustryMarket
7 Day0.9%1.3%0.4%
30 Day29.3%10.1%2.1%
90 Day23.0%14.3%6.0%
1 Year91.1%90.5%56.1%48.2%40.3%35.8%
3 Year-5.2%-9.4%1.8%-10.7%32.3%19.7%
5 Year-27.1%-32.4%8.5%-11.0%58.7%35.0%

Long-Term 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$12.04) is trading below our estimate of fair value (CA$30.4)

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


Price To Earnings Ratio

PE vs Industry: CVE is unprofitable, so we can't compare its PE Ratio to the Canadian Oil and Gas industry average.

PE vs Market: CVE is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CVE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CVE is good value based on its PB Ratio (1.1x) compared to the CA Oil and Gas industry average (1.6x).


Future Growth

How is Cenovus Energy forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

32.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CVE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: CVE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CVE's is expected to become profitable in the next 3 years.

Revenue vs Market: CVE's revenue (21.6% per year) is forecast to grow faster than the Canadian market (5.6% per year).

High Growth Revenue: CVE's revenue (21.6% per year) is forecast to grow faster than 20% 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 (7.9%).


Past Performance

How has Cenovus Energy performed over the past 5 years?

-29.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CVE is currently unprofitable.

Growing Profit Margin: CVE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CVE is unprofitable, and losses have increased over the past 5 years at a rate of 29.3% per year.

Accelerating Growth: Unable to compare CVE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CVE is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-33.9%).


Return on Equity

High ROE: CVE has a negative Return on Equity (-1.53%), as it is currently unprofitable.


Financial Health

How is Cenovus Energy's financial position?


Financial Position Analysis

Short Term Liabilities: CVE's short term assets (CA$7.2B) exceed its short term liabilities (CA$5.3B).

Long Term Liabilities: CVE's short term assets (CA$7.2B) do not cover its long term liabilities (CA$24.1B).


Debt to Equity History and Analysis

Debt Level: CVE's debt to equity ratio (60.2%) is considered high.

Reducing Debt: CVE's debt to equity ratio has increased from 51.1% to 60.2% over the past 5 years.

Debt Coverage: CVE's debt is not well covered by operating cash flow (2.6%).

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


Balance Sheet


Dividend

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

0.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CVE's dividend (0.58%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.58%).

High Dividend: CVE's dividend (0.58%) is low compared to the top 25% of dividend payers in the Canadian market (4.5%).


Stability and Growth of Payments

Stable Dividend: CVE is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: CVE is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CVE is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CVE's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

0.4yrs

Average management tenure


CEO

Alex Pourbaix (54 yo)

3.58yrs

Tenure

CA$9,511,999

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 ($USD7.74M) is about average for companies of similar size in the Canadian market ($USD6.74M).

Compensation vs Earnings: Alex's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: CVE's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: CVE's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


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 been substantially diluted in the past year, with total shares outstanding growing by 64.2%.


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$24.370b
  • Shares outstanding: 2.02b
  • Website: https://www.cenovus.com

Number of Employees


Location

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

Listings


Biography

Cenovus Energy Inc., together with its subsidiaries, develops, produces, and markets crude oil, natural gas liquids, and natural gas in Canada, the United States and the Asia Pacific region. The company op...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/25 02:06
End of Day Share Price2021/06/24 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.