Cenovus Energy Inc.Find Ratings Reports
CENOVUS ENERGY INC's gross profit margin for the second quarter of its fiscal year 2021 has significantly increased 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 subsector when comparing revenue growth, but not when comparing net income growth. CENOVUS ENERGY INC has weak liquidity. Currently, the Quick Ratio is 0.71 which 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 36.49% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q2 FY21||Q2 FY20|
|Net Sales ($mil)||10577.0||2174.0|
|Net Income ($mil)||224.0||-235.0|
|Balance Sheet||Q2 FY21||Q2 FY20|
|Cash & Equiv. ($mil)||1055.0||152.0|
|Total Assets ($mil)||53035.0||33919.0|
|Total Debt ($mil)||16532.0||10247.0|
|Profitability||Q2 FY21||Q2 FY20|
|Gross Profit Margin||22.54||16.19|
|Return on Assets||0.18||-5.1|
|Return on Equity||0.34||-10.01|
|Debt||Q2 FY21||Q2 FY20|
|Share Data||Q2 FY21||Q2 FY20|
|Shares outstanding (mil)||2017.61||1228.87|
|Div / share||0.01||0.0|
|Book value / share||11.71||14.09|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||8540844.0||8979513.0|
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Conducting a second comparison, its price-to-book ratio of 0.82 indicates a significant discount versus the S&P 500 average of 4.62 and a discount versus the subsector average of 1.91. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, CENOVUS ENERGY INC proves to trade at a discount to investment alternatives.
|CVE NM||Peers 30.33||CVE 6.03||Peers 7.62|
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.
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 discount to its peers.
|CVE NA||Peers 26.05||CVE NA||Peers 0.19|
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.
|CVE 0.82||Peers 1.91||CVE 94.33||Peers 272.54|
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.
|CVE 0.72||Peers 4.68||CVE 70.67||Peers -2.67|
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 subsector on this measurement.
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share.
CVE has a sales growth rate that significantly exceeds its peers.