Cenovus Energy Inc. Fundamental Analysis (NYSE: CVE)
Cenovus Energy Inc. (NYSE: CVE) shows moderate financial fundamentals with a PE ratio of 8.62, profit margin of 15.38%, and ROE of 25.86%. The company generates $55.9B in annual revenue with weak year-over-year growth of -8.44%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CVE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCVE demonstrates superior asset utilization.
Valuation Score
ExcellentCVE trades at attractive valuation levels.
Growth Score
ModerateCVE shows steady but slowing expansion.
Financial Health Score
ExcellentCVE maintains a strong and stable balance sheet.
Profitability Score
ExcellentCVE achieves industry-leading margins.
Key Financial Metrics
Is CVE Expensive or Cheap?
P/E Ratio
CVE trades at 8.62 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CVE's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values Cenovus Energy Inc. at 2.09 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.79 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 $15.38 as profit after all expenses.
Operating Margin
Core operations generate 20.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.86 in profit for every $100 of shareholder equity.
ROA
Cenovus Energy Inc. generates $12.67 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cenovus Energy Inc. generates strong operating cash flow of $15.58B, reflecting robust business health.
Free Cash Flow
Cenovus Energy Inc. generates strong free cash flow of $10.54B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.80 in free cash annually.
FCF Yield
CVE converts 14.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.30
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.64
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How CVE Stacks Against Its Sector Peers
| Metric | CVE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.62 | 20.60 | Better (Cheaper) |
| ROE | 25.86% | 1363.00% | Weak |
| Net Margin | 15.38% | 1351.00% | Weak |
| Debt/Equity | 0.33 | -1.64 (disorted) | Distorted |
| Current Ratio | 1.64 | 2.16 | Neutral |
| ROA | 12.67% | 2679.00% | 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
149.15%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
212.17%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
1946.41%
Industry Style: Cyclical, Value, Commodity
High Growth