Cenovus Energy (CVE) AI Stock Analysis

• Market Cap: C$0.00
• Dividend Yield: 4.49%
• Average Volume (3M): 8.42M
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.00
• Revenue Growth: -7.82%
• EPS Growth: -42.65%
• Country: CA
• Employees: 7,150
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.45
• Shares Outstanding: 0
• 10 Day Avg. Volume: 8,026,698
• 30 Day Avg. Volume: 8,416,790
• PEG Ratio: -0.59
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 9.54
• 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: C$18.44
• Price Target Upside: -9.74% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 74 Outperform
• Price Target: C$23.50 ▲(15.03% Upside)

Cenovus Energy's robust operational performance and strategic advancements are major strengths, reflected in their strong earnings call. The technical indicators suggest bullish momentum, but caution is needed due to overbought signals. Valuation metrics are favorable, supporting a solid dividend yield despite high debt levels. Financial performance shows stability, though improvements in net profit margins and cash flow growth are needed.

Positive Factors

Capital Expenditure

The company's capital expenditures came in below expectations, indicating efficient cost management.

Free Cash Flow

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

Operational Performance

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

Negative Factors

Downstream Performance

Investors are concerned about whether the US downstream segment is at a turning point.

Production Guidance

CVE’s upstream production guide was tempered due to outages.

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 energy sector with a focus on the production, refining, and marketing of crude oil, natural gas liquids, and natural gas. Cenovus is known for its oil sands operations in Alberta, which are complemented by its refining and upgrading facilities. The company aims to provide reliable energy solutions while maintaining a commitment to environmental sustainability and innovation.

How the Company Makes Money

Cenovus Energy generates revenue primarily through the exploration, development, production, and sale of crude oil, natural gas liquids, and natural gas. The company's key revenue streams include oil sands operations, conventional oil and natural gas production, and refining and marketing of petroleum products. Cenovus operates several oil sands projects, which contribute significantly to its production output. Additionally, its refining operations, often conducted through joint ventures, enable the company to process crude oil into refined products such as gasoline and diesel, which are then sold to various markets. Strategic partnerships and joint ventures in refining and pipeline infrastructure also play a crucial role in optimizing its supply chain and expanding market access, further bolstering its earnings.

Cenovus Energy Financial Statement Overview

Summary

Cenovus Energy exhibits strong operational efficiency and stable financial health. Revenue growth is modest, but operational margins remain strong. The balance sheet is solid with low leverage, and cash flow generation is strong despite a decline in free cash flow growth. The company is well-positioned, though it needs to focus on improving net profit margins and free cash flow growth.

Income Statement

Cenovus Energy shows a strong gross profit margin of 16.93% for TTM, indicating efficient cost management. However, the net profit margin decreased slightly to 4.83% in TTM from 5.44% in the previous year, showing a need for improvement in net profitability. Revenue growth rate in TTM is modest at 1.40% compared to the previous year, reflecting stable but slow growth. EBIT and EBITDA margins are healthy at 7.86% and 15.85% respectively, showing good operational efficiency.

Balance Sheet

The debt-to-equity ratio stands at 0.36, which is relatively low, indicating a strong equity position compared to debt. ROE is 9.41% for TTM, reflecting moderate profitability from equity. The equity ratio is 53.27%, suggesting a solid equity buffer against liabilities. Overall, the balance sheet demonstrates stability with manageable leverage.

Cash Flow

Free cash flow growth rate is negative at -18.79%, indicating reduced cash generation compared to the previous year. The operating cash flow to net income ratio is robust at 3.05, showing strong cash flow generation compared to net income. The free cash flow to net income ratio is 1.21, reflecting adequate conversion of net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.97B	57.73B	52.20B	71.77B	48.81B	13.59B
Gross Profit	9.59B	12.77B	6.16B	16.89B	9.11B	200.00M
EBITDA	8.92B	9.56B	10.23B	13.90B	6.66B	770.00M
Net Income	2.68B	3.14B	4.11B	6.45B	587.00M	-2.38B
Balance Sheet
Total Assets	55.82B	56.54B	53.91B	55.87B	54.10B	32.77B
Cash, Cash Equivalents and Short-Term Investments	2.56B	3.09B	2.23B	4.52B	2.87B	378.00M
Total Debt	10.49B	10.63B	9.95B	11.64B	15.42B	9.32B
Total Liabilities	26.40B	26.77B	25.20B	28.28B	30.50B	16.06B
Stockholders Equity	29.40B	29.75B	28.70B	27.58B	23.60B	16.71B
Cash Flow
Free Cash Flow	2.98B	4.22B	3.09B	7.64B	3.36B	-586.00M
Operating Cash Flow	8.19B	9.23B	7.39B	11.40B	5.92B	273.00M
Investing Cash Flow	-5.54B	-5.13B	-5.29B	-2.31B	-942.00M	-863.00M
Financing Cash Flow	-3.29B	-3.50B	-4.31B	-7.68B	-2.51B	837.00M

Cenovus Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 20.43 is above the 20-day moving average (MA) of 19.96, above the 50-day MA of 19.37, and above the 200-day MA of 19.81, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 61.02 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 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
CVE	74 Outperform	C$0.00	14.09	8.83%	4.49%	-7.82%	-42.65%
Sector *	56 Neutral	C$4.11B	-0.17	0.41%	6.51%	5.42%	-66.54%
IMO	―	$43.22B	12.97	18.80%	2.26%	―	―
PBA	―	$21.74B	16.95	11.55%	5.38%	―	―
SU	―	$0.00	11.22	13.74%	4.14%	―	―
TOU	73 Outperform	C$22.42B	14.30	9.76%	5.26%	-8.29%	-30.52%
AETUF	―	$11.63B	10.76	18.43%	2.66%	―	―

Cenovus Energy Corporate Events

Cenovus Energy Reports Strong Q2 2025 Results Amid Strategic Advancements

Cenovus Energy reported its second-quarter 2025 results, highlighting $2.4 billion in cash from operating activities and a total upstream production of 765,900 BOE/d, impacted by planned maintenance and wildfires. Key achievements include the first oil at Narrows Lake, progress on the West White Rose project, and successful turnarounds at multiple facilities. The company returned $819 million to shareholders and anticipates increased free funds flow as growth projects near completion.

The most recent analyst rating on (TSE:CVE) stock is a Sell with a C$19.00 price target. To see the full list of analyst forecasts on Cenovus Energy stock, see the TSE:CVE Stock Forecast page.

Cenovus Energy Resumes Full Production at Christina Lake Post-Wildfire

Cenovus Energy has successfully restored full production at its Christina Lake oil sands asset after a temporary halt due to nearby wildfires. The company confirmed no damage to its infrastructure and continues to prioritize the safety of its personnel and assets, acknowledging the efforts of emergency teams in safeguarding the community.

The most recent analyst rating on (TSE:CVE) stock is a Sell with a C$19.00 price target. To see the full list of analyst forecasts on Cenovus Energy stock, see the TSE:CVE Stock Forecast page.

Cenovus Energy to Redeem Series 7 Preferred Shares

Cenovus Energy Inc. has announced the redemption of its 3.935% Series 7 Preferred Shares, effective June 30, 2025, at a price of $25.00 per share, totaling $150 million. This move, funded primarily from cash on hand, marks the final dividend payment for these shares and reflects Cenovus’s strategic financial management, potentially impacting its market positioning and shareholder relations.

The most recent analyst rating on (TSE:CVE) stock is a Sell with a C$19.00 price target. To see the full list of analyst forecasts on Cenovus Energy stock, see the TSE:CVE Stock Forecast page.

Cenovus Energy Reports on Alberta Wildfire Impact

Cenovus Energy has provided an update on its Oil Sands operations in response to ongoing wildfires in northern Alberta. The company has ensured the safety of its staff and the integrity of its assets, with no reported damage to its infrastructure. As a precaution, production at the Christina Lake oil sands asset was methodically shut down, impacting approximately 238,000 barrels per day. Cenovus anticipates a full restart of operations once it is safe, and continues to monitor the wildfire situation closely, expressing gratitude to its teams and emergency services for their efforts.

The most recent analyst rating on (TSE:CVE) stock is a Sell with a C$19.00 price target. To see the full list of analyst forecasts on Cenovus Energy stock, see the TSE:CVE Stock Forecast page.

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.

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.