Cenovus Energy Inc.Find Ratings Reports
CENOVUS ENERGY INC's gross profit margin for the third quarter of its fiscal year 2020 has decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the subsector, the revenue growth did not. CENOVUS ENERGY INC has weak liquidity. Currently, the Quick Ratio is 0.80 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 11.41% 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||Q3 FY20||Q3 FY19|
|Net Sales ($mil)||3659.0||4736.0|
|Net Income ($mil)||-194.0||187.0|
|Balance Sheet||Q3 FY20||Q3 FY19|
|Cash & Equiv. ($mil)||404.0||437.0|
|Total Assets ($mil)||32857.0||35779.0|
|Total Debt ($mil)||9767.0||8918.0|
|Profitability||Q3 FY20||Q3 FY19|
|Gross Profit Margin||18.88||22.66|
|Return on Assets||-6.43||2.02|
|Return on Equity||-12.41||3.8|
|Debt||Q3 FY20||Q3 FY19|
|Share Data||Q3 FY20||Q3 FY19|
|Shares outstanding (mil)||1228.87||1228.83|
|Div / share||0.0||0.04|
|Book value / share||13.86||15.65|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||8896765.0||5098284.0|
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. For additional comparison, its price-to-book ratio of 0.49 indicates a significant discount versus the S&P 500 average of 4.11 and a significant discount versus the subsector average of 2.16. 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 52.24||CVE 10.97||Peers 6.79|
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.
Premium. 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 premium to its peers.
|CVE NA||Peers 21.65||CVE NA||Peers 0.87|
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 0.49||Peers 2.16||CVE -391.52||Peers -203.63|
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 0.57||Peers 1.59||CVE -26.40||Peers -25.16|
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.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
CVE significantly trails its peers on the basis of sales growth.