Cenovus Energy, Inc. (CVE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Whitecap Resources, Inc.

Peyto Exploration & Development Corp.

Cenovus Energy, Inc.

Suncor Energy, Inc.

Imperial Oil Ltd.

Crescent Point Energy Corp.

Athabasca Oil Corp.

NuVista Energy Ltd.

Baytex Energy Corp.

Paramount Resources Ltd.

Enerplus Corp.

Why is Cenovus Energy, Inc. ?

Strong Long Term Fundamental Strength with a 64.84% CAGR growth in Operating Profits

Healthy long term growth as Net Sales has grown by an annual rate of 21.51% and Operating profit at 64.84%

With a growth in Net Profit of 82.8%, the company declared Very Positive results in Jun 26

The company has declared positive results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CAD 12,356 MM
ROCE(HY) Highest at 20.94%
DIVIDEND PER SHARE(HY) Highest at CAD 14.51

With ROE of 14.89%, it has a attractive valuation with a 2.03 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 94.26%, its profits have risen by 65% ; the PEG ratio of the company is 0.2

High Institutional Holdings at 58.53%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 1.2% over the previous quarter.

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Cenovus Energy, Inc. should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Cenovus Energy, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Cenovus Energy, Inc.

94.66%

1.32

36.73%

S&P/TSX 60

29.63%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.51%

EBIT Growth (5y)

64.84%

EBIT to Interest (avg)

11.41

Debt to EBITDA (avg)

0.61

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

1.37

Tax Ratio

14.75%

Dividend Payout Ratio

36.05%

Pledged Shares

Institutional Holding

57.33%

ROCE (avg)

17.75%

ROE (avg)

12.78%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.03

EV to EBIT

13.67

EV to EBITDA

6.74

EV to Capital Employed

1.82

EV to Sales

1.53

PEG Ratio

0.23

Dividend Yield

ROCE (Latest)

13.32%

ROE (Latest)

14.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

30What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 12,356 MM

ROCE(HY)

Highest at 20.94%

DIVIDEND PER SHARE(HY)

Highest at CAD 14.51

INTEREST COVERAGE RATIO(Q)

Highest at 4,178.26

OPERATING PROFIT MARGIN(Q)

Highest at 33.09 %

RAW MATERIAL COST(Y)

Fallen by -355.31% (YoY

NET SALES(Q)

Highest at CAD 17,427 MM

OPERATING PROFIT(Q)

Highest at CAD 5,766 MM

PRE-TAX PROFIT(Q)

Highest at CAD 3,913 MM

NET PROFIT(Q)

Highest at CAD 2,882.32 MM

EPS(Q)

Highest at CAD 1.53

-8What is not working for the Company

INTEREST(HY)

At CAD 294 MM has Grown at 35.48%

INVENTORY TURNOVER RATIO(HY)

Lowest at 10.57 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 14.51 times

Here's what is working for Cenovus Energy, Inc.

Interest Coverage Ratio

Highest at 4,178.26

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit Margin

Highest at 33.09 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At CAD 3,913 MM has Grown at 180.45%

over average net sales of the previous four periods of CAD 1,395.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 2,882.32 MM has Grown at 138.16%

over average net sales of the previous four periods of CAD 1,210.26 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Dividend per share

Highest at CAD 14.51 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Operating Cash Flow

Highest at CAD 12,356 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Sales

Highest at CAD 17,427 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Net Sales

At CAD 17,427 MM has Grown at 42.98%

over average net sales of the previous four periods of CAD 12,188.25 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 5,766 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Pre-Tax Profit

Highest at CAD 3,913 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 2,882.32 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 1.53

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Raw Material Cost

Fallen by -355.31% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at CAD 1,549 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Cenovus Energy, Inc.

Interest

At CAD 294 MM has Grown at 35.48%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Inventory Turnover Ratio

Lowest at 10.57 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 14.51 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio