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.

Baytex Energy Corp.

Crescent Point Energy Corp.

Athabasca Oil Corp.

NuVista Energy Ltd.

Suncor 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.

76.09%

-0.20

38.48%

S&P/TSX 60

23.72%

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)

30.31%

EBIT Growth (5y)

36.38%

EBIT to Interest (avg)

9.33

Debt to EBITDA (avg)

1.29

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

1.41

Tax Ratio

22.85%

Dividend Payout Ratio

36.05%

Pledged Shares

Institutional Holding

57.12%

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

1.92

EV to EBIT

15.85

EV to EBITDA

7.08

EV to Capital Employed

1.72

EV to Sales

1.40

PEG Ratio

0.76

Dividend Yield

ROCE (Latest)

10.88%

ROE (Latest)

13.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

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

10What is working for the Company

NET PROFIT(HY)

At CAD 2,390.09 MM has Grown at 131.92%

DIVIDEND PER SHARE(HY)

Highest at CAD 16.3

RAW MATERIAL COST(Y)

Fallen by -50.34% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 23.08 %

-6What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 36.26 %

NET SALES(Q)

Lowest at CAD 10,883 MM

INTEREST(Q)

Highest at CAD 131 MM

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

Net Profit

At CAD 2,390.09 MM has Grown at 131.92%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Dividend per share

Highest at CAD 16.3 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Operating Profit Margin

Highest at 23.08 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -50.34% (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 1,436 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 131 MM has Grown at 10.08%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Net Sales

Lowest at CAD 10,883 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Net Sales

At CAD 10,883 MM has Fallen at -13.9%

over average net sales of the previous four periods of CAD 12,639.75 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Interest

Highest at CAD 131 MM

in the last five periods and Increased by 10.08% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Debt-Equity Ratio

Highest at 36.26 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio