Cenovus Energy Inc

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CVE : NYSE : Basic Materials
$15.52 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 1774200.0
12/07/16 - 4:00 PM ET

Financial Analysis


CENOVUS ENERGY INC's gross profit margin for the third quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, however the growth has outpaced the average competitor within the industry. CENOVUS ENERGY INC is extremely liquid. Currently, the Quick Ratio is 2.61 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 12.15% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)3240.03273.0
EBITDA ($mil)94.0299.0
EBIT ($mil)-323.0-206.0
Net Income ($mil)-251.01801.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)3850.04401.0
Total Assets ($mil)24475.026725.0
Total Debt ($mil)6184.06312.0
Equity ($mil)11431.013013.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin5.2811.7
EBITDA Margin2.99.13
Operating Margin-9.97-6.29
Sales Turnover0.470.54
Return on Assets-5.212.94
Return on Equity-11.176.04
Debt Q3 FY16 Q3 FY15
Current Ratio3.13.58
Debt/Capital0.350.33
Interest Expense89.090.0
Interest Coverage-3.63-2.29


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)833.29833.29
Div / share0.040.12
EPS-0.32.16
Book value / share13.7215.62
Institutional Own % n/a n/a
Avg Daily Volume1749346.01842593.0

Valuation


SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 1.05 indicates a significant discount versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 20.54. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing 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 NM Peers 38.75   CVE 11.83 Peers 12.67

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

CVE's P/E is negative making this valuation measure meaningless.

 

Average. 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 valuation on par 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 44.30   CVE NA Peers 0.47

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 1.05 Peers 20.54   CVE -284.33 Peers -239.55

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 1.06 Peers 2.56   CVE -20.61 Peers -20.64

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

CVE significantly trails its peers on the basis of sales growth

 

 

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