Cenovus Energy (CVE) AI Stock Analysis

• Market Cap: $29.78B
• Dividend Yield: 3.91%
• Average Volume (3M): 6.08M
• Price to Earnings (P/E): 9.6
• Beta (1Y): 1.23
• Revenue Growth: 1.57%
• EPS Growth: -38.04%
• Country: CA
• Employees: 7,150
• Sector: Energy
• Sector Strength: 49
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.47
• Shares Outstanding: 1,823,629,000
• 10 Day Avg. Volume: 4,689,047
• 30 Day Avg. Volume: 6,080,687
• PEG Ratio: -0.71
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $26.16
• Price Target Upside: 41.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

Cenovus Energy's strong financial performance and strategic growth initiatives are significant positives, supported by favorable valuation and positive corporate events. However, technical analysis indicates short-term challenges, balancing the overall score at a moderate level.

Positive Factors

Financial health

Free cash flow was significantly above estimates, showcasing strong financial health.

Upstream performance

Cenovus Energy's upstream performance continues to deliver strong results.

Negative Factors

Downstream performance

The company needs to address weak downstream performance and operational challenges to meet investor expectations.

Refining margins

The company faces weak refining margins and additional costs from the Lima turnaround, impacting financial performance.

Cenovus Energy Business Overview & Revenue Model

Company Description

Cenovus Energy Inc. is a Canadian integrated oil and natural gas company headquartered in Calgary, Alberta. It operates in the oil sands sector, with an emphasis on the development and production of bitumen, as well as the exploration and production of conventional crude oil, natural gas, and natural gas liquids. The company is also engaged in refining operations, providing a comprehensive approach to energy production and distribution. Cenovus Energy is a major player in the North American energy market, known for its sustainable practices and innovative technologies in resource extraction and energy production.

How the Company Makes Money

Cenovus Energy generates revenue primarily through the production and sale of crude oil, natural gas, and natural gas liquids. The company's key revenue streams include its oil sands operations, conventional oil and gas production, and refining and marketing activities. Its oil sands projects, located in northern Alberta, are significant contributors to its earnings, utilizing advanced extraction technologies to produce bitumen. In addition, Cenovus benefits from its refining and marketing segment, which processes crude oil into refined products like gasoline and diesel, which are sold in various markets. The company's financial performance is also influenced by strategic partnerships, joint ventures, and market conditions affecting commodity prices. These elements combined contribute to a diversified revenue model that supports its growth and stability in the energy sector.

Cenovus Energy Financial Statement Overview

Summary

Cenovus Energy demonstrates strong resilience and adaptability in the fossil fuels industry. The company shows healthy revenue growth and cash flow generation, although profitability margins have seen some pressure. The balance sheet remains solid with manageable debt levels and a strong equity base. Overall, Cenovus appears well-positioned to navigate market challenges while maintaining a stable financial footing.

Income Statement

Cenovus Energy's income statement shows a mixed performance. The gross profit margin in 2024 was approximately 22.1%, reflecting effective cost management relative to revenue. However, net profit margin decreased to 5.4% from 7.9% in 2023, indicating reduced profitability. Revenue growth was robust at 10.5% from 2023 to 2024, showing strong sales performance despite industry challenges. The EBIT margin for 2024 was 0% due to EBIT being zero, but the EBITDA margin was healthy at 16.6%.

Balance Sheet

The balance sheet of Cenovus Energy indicates a reasonably stable financial position. The debt-to-equity ratio improved to 0.36 in 2024 from 0.35 in 2023, suggesting prudent debt management. Return on equity (ROE) was 10.6%, which is a positive sign of efficiency in generating profits from shareholders' equity. The equity ratio stood at 52.6%, indicating a solid equity base relative to total assets.

Cash Flow

Cenovus Energy's cash flow statement highlights a strong cash generation ability. Free cash flow grew by 36.6% from 2023 to 2024, signaling improved operational efficiency. The operating cash flow to net income ratio was 2.94, indicating robust operating cash relative to net income. The free cash flow to net income ratio was 1.34, which is a positive sign of cash flow strength relative to its profits.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
57.73B	52.20B	71.77B	48.81B	13.59B
	Gross Profit
12.77B	6.16B	16.89B	9.11B	200.00M
	EBIT
0.00	5.62B	10.97B	3.88B	-2.17B
	EBITDA
9.59B	10.23B	13.90B	6.66B	770.00M
	Net Income Common Stockholders
3.14B	4.11B	6.45B	587.00M	-2.38B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.09B	2.23B	4.52B	2.87B	378.00M
	Total Assets
56.54B	53.91B	55.87B	54.10B	32.77B
	Total Debt
10.63B	9.95B	11.64B	15.42B	9.32B
	Net Debt
7.54B	7.72B	7.12B	12.55B	8.94B
	Total Liabilities
26.77B	25.20B	28.28B	30.50B	16.06B
	Stockholders Equity
29.75B	28.70B	27.58B	23.60B	16.71B
Cash Flow		Free Cash Flow
4.22B	3.09B	7.64B	3.36B	-586.00M
	Operating Cash Flow
9.23B	7.39B	11.40B	5.92B	273.00M
	Investing Cash Flow
-5.13B	-5.29B	-2.31B	-942.00M	-863.00M
	Financing Cash Flow
-3.50B	-4.31B	-7.68B	-2.51B	837.00M

Cenovus Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.45
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CVE, the sentiment is Positive. The current price of 18.45 is above the 20-day moving average (MA) of 16.59, above the 50-day MA of 17.85, and below the 200-day MA of 21.34, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 61.05 is Neutral, neither overbought nor oversold. The STOCH value of 71.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CVE.

Cenovus Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMO	76 Outperform	$48.00B	10.01	20.61%	2.54%	1.26%	8.70%
SU	76 Outperform	$59.83B	10.21	13.74%	4.58%	2.16%	-20.22%
ARX	75 Outperform	$15.12B	11.37	17.25%	2.67%	2.20%	13.50%
PPL	74 Outperform	$31.19B	17.92	11.55%	5.35%	-5.42%	-1.70%
CVE	73 Outperform	$29.78B	9.60	9.50%	3.91%	1.57%	-38.04%
TOU	73 Outperform	C$23.04B	17.09	8.35%	2.43%	-8.29%	-30.52%
Sector *	56 Neutral	$7.06B	3.68	-4.87%	5.83%	0.28%	-51.94%

Cenovus Energy Corporate Events

Cenovus Energy Announces Shareholder Meeting Results and Leadership Changes

Cenovus Energy Inc. held its annual meeting of shareholders where PricewaterhouseCoopers LLP was reappointed as auditor, and 14 directors were elected, including new board member Chana Martineau. The meeting also marked a leadership transition with Alex Pourbaix moving to the role of non-independent Chair of the Board, while Claude Mongeau continues as Lead Independent Director. An advisory resolution on executive compensation was passed, reflecting shareholder approval of the company’s approach.

Spark’s Take on TSE:CVE Stock

According to Spark, TipRanks’ AI Analyst, TSE:CVE is a Outperform.

Cenovus Energy’s overall stock score reflects its strong financial performance and a positive outlook from the latest earnings call. However, the stock is currently facing bearish technical indicators, which dampen the short-term sentiment. The company’s valuation is reasonable, with a solid dividend yield providing additional investor appeal. While the company’s operational achievements and strategic moves are commendable, the technical weaknesses and industry challenges slightly weigh down the overall score.

To see Spark’s full report on TSE:CVE stock, click here.

Cenovus Energy Reports Strong Q1 2025 Results and Increases Dividend

Cenovus Energy reported strong financial and operational results for the first quarter of 2025, with significant cash generation and increased upstream production. The company announced an 11% increase in its base dividend, reflecting its growth strategy and resilience at a US$45 WTI oil price. The company returned $595 million to shareholders and made progress on major upstream projects, positioning itself well to navigate market volatility and enhance shareholder returns.

Spark’s Take on TSE:CVE Stock

According to Spark, TipRanks’ AI Analyst, TSE:CVE is a Outperform.

Cenovus Energy’s overall stock score reflects its strong financial performance and a positive outlook from the latest earnings call. However, the stock is currently facing bearish technical indicators, which dampen the short-term sentiment. The company’s valuation is reasonable, with a solid dividend yield providing additional investor appeal. While the company’s operational achievements and strategic moves are commendable, the technical weaknesses and industry challenges slightly weigh down the overall score.

To see Spark’s full report on TSE:CVE stock, click here.

Cenovus Energy to Redeem Series 5 Preferred Shares

Cenovus Energy announced its decision to redeem all 8 million of its 4.591% Series 5 Preferred Shares on March 31, 2025, at a price of $25.00 per share, totaling $200 million. This strategic financial move, funded primarily from cash on hand, will conclude with a final dividend payment on the shares, reflecting Cenovus’s ongoing efforts to optimize its capital structure and enhance shareholder value.

Cenovus Energy Reports Record Oil Sands Production and Strong Financial Results for 2024

Cenovus Energy reported robust financial and operational performance for the fourth quarter and full-year 2024. The company achieved record production levels in its Oil Sands operations and improved throughput in its Downstream business. Key growth projects, such as the Narrows Lake pipeline and the West White Rose project, reached significant milestones, positioning the company for long-term value delivery. Additionally, Cenovus returned $706 million to shareholders, indicating a strong commitment to shareholder value.