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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Suncor Energy, Inc.

Whitecap Resources, Inc.

Peyto Exploration & Development Corp.

Athabasca Oil Corp.

Baytex Energy Corp.

Crescent Point Energy Corp.

NuVista Energy Ltd.

Cenovus Energy, Inc.

Paramount Resources Ltd.

Imperial Oil Ltd.

Enerplus Corp.

Why is Cenovus Energy, Inc. ?

Strong Long Term Fundamental Strength with a 40.25% CAGR growth in Operating Profits

Healthy long term growth as Net Sales has grown by an annual rate of 26.85% and Operating profit at 40.25%

With ROE of 9.41%, it has a very attractive valuation with a 1.50 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 7.45%, its profits have fallen by -45%

High Institutional Holdings at 52.88%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 2.37% over the previous quarter.

Real-Time Research Report

Verdict Report

How much should you hold?

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, Low Return

Absolute

Risk Adjusted

Volatility

Cenovus Energy, Inc.

17.33%

-0.20

38.48%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

26.85%

EBIT Growth (5y)

40.25%

EBIT to Interest (avg)

9.33

Debt to EBITDA (avg)

1.29

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

1.48

Tax Ratio

22.85%

Dividend Payout Ratio

40.51%

Pledged Shares

Institutional Holding

53.20%

ROCE (avg)

15.16%

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

1.51

EV to EBIT

13.70

EV to EBITDA

5.65

EV to Capital Employed

1.43

EV to Sales

0.96

PEG Ratio

Dividend Yield

ROCE (Latest)

10.43%

ROE (Latest)

9.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

3What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at CAD 15.04

DIVIDEND PAYOUT RATIO(Y)

Highest at 42.75%

-12What is not working for the Company

NET PROFIT(9M)

At CAD 1,907.9 MM has Grown at -37.44%

OPERATING CASH FLOW(Y)

Lowest at CAD 8,192 MM

ROCE(HY)

Lowest at 9.01%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,767.92

RAW MATERIAL COST(Y)

Grown by 46.83% (YoY

OPERATING PROFIT(Q)

Lowest at CAD 1,874 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 15.21 %

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

Dividend per share

Highest at CAD 15.04 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Dividend Payout Ratio

Highest at 42.75%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

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

Net Profit

At CAD 1,907.9 MM has Grown at -37.44%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Interest Coverage Ratio

Lowest at 1,767.92

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CAD 8,192 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Operating Profit

Lowest at CAD 1,874 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at 15.21 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 46.83% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales