Cenovus Energy Inc

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CVE : NYSE : Basic Materials
$7.53 -0.11 | -1.44%
Today's Range: 7.5 - 7.775
Avg. Daily Volume: 5514000.0
08/16/17 - 4:01 PM ET

Financial Analysis


CENOVUS ENERGY INC's gross profit margin for the second quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. CENOVUS ENERGY INC has very weak liquidity. Currently, the Quick Ratio is 0.45 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 68.71% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)4037.02746.0
EBITDA ($mil)545.0343.0
EBIT ($mil)147.0112.0
Net Income ($mil)2640.0-267.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)489.03780.0
Total Assets ($mil)44459.024714.0
Total Debt ($mil)13413.06132.0
Equity ($mil)19701.011677.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin15.0616.17
EBITDA Margin13.512.49
Operating Margin3.644.08
Sales Turnover0.330.44
Return on Assets6.053.13
Return on Equity13.358.26
Debt Q2 FY17 Q2 FY16
Current Ratio1.442.89
Debt/Capital0.410.34
Interest Expense157.090.0
Interest Coverage0.941.24


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)1228.79833.29
Div / share0.040.04
EPS2.32-0.28
Book value / share16.0314.01
Institutional Own % n/a n/a
Avg Daily Volume5359894.04068509.0

Valuation


SELL. CENOVUS ENERGY INC's P/E ratio indicates a significant discount compared to an average of 64.34 for the Oil, Gas & Consumable Fuels industry and a significant discount compared to the S&P 500 average of 24.31. For additional comparison, its price-to-book ratio of 0.50 indicates a significant discount versus the S&P 500 average of 3.03 and a significant discount versus the industry average of 541.69. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, CENOVUS ENERGY INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CVE 3.35 Peers 64.34   CVE 4.33 Peers 15.89

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

CVE is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

CVE is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CVE NA Peers 34.73   CVE NA Peers 0.55

Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.

Ratio not available.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CVE 0.50 Peers 541.69   CVE 105.17 Peers 154.68

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

CVE is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, CVE is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CVE 0.68 Peers 2.03   CVE 32.24 Peers 19.70

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

CVE is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

CVE has a sales growth rate that significantly exceeds its peers.

 

 

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