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Cenovus Energy Inc (CVE)

Upturn stock ratingUpturn stock rating
$14.13
Delayed price
upturn advisory
PASS
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  • SELL Advisory (Profit)​
  • SELL Advisory (Loss)​
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Upturn Advisory Summary

03/21/2025: CVE (1-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

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Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

AI Based Fundamental Rating

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Moderate Performance

These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.

Analysis of Past Performance

Type Stock
Historic Profit -20%
Avg. Invested days 41
Today’s Advisory PASS
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 3.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 03/21/2025

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 25.84B USD
Price to earnings Ratio 12.08
1Y Target Price 20.18
Price to earnings Ratio 12.08
1Y Target Price 20.18
Volume (30-day avg) 11748434
Beta 2.53
52 Weeks Range 11.96 - 21.07
Updated Date 03/23/2025
52 Weeks Range 11.96 - 21.07
Updated Date 03/23/2025
Dividends yield (FY) 3.54%
Basic EPS (TTM) 1.17

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 5.79%
Operating Margin (TTM) 6.55%

Management Effectiveness

Return on Assets (TTM) 5.41%
Return on Equity (TTM) 10.75%

Valuation

Trailing PE 12.08
Forward PE 13.42
Enterprise Value 31352969171
Price to Sales(TTM) 0.48
Enterprise Value 31352969171
Price to Sales(TTM) 0.48
Enterprise Value to Revenue 0.78
Enterprise Value to EBITDA 4.68
Shares Outstanding 1821629952
Shares Floating 1269910040
Shares Outstanding 1821629952
Shares Floating 1269910040
Percent Insiders 30.36
Percent Institutions 50.3

Analyst Ratings

Rating 4.5
Target Price 21.58
Buy 10
Strong Buy 10
Buy 10
Strong Buy 10
Hold -
Sell -
Strong Sell -
Strong Sell -

Upturn AI SWOT

Cenovus Energy Inc.: A Comprehensive Overview

Company Profile

History and Background

Cenovus Energy Inc. (CVE) is a Canadian integrated oil and natural gas company headquartered in Calgary, Alberta. It was formed in 2009 through the merger of two Canadian oil and gas producers, EnCana Corporation and OPTI Canada Inc.

Initially, Cenovus focused primarily on oil sands development and production. However, in recent years, the company has diversified its portfolio to include natural gas, oil refining, and marketing.

Core Business Areas

Cenovus operates in three core business segments:

  • Oil Sands: This segment focuses on developing and producing oil from the Athabasca oil sands in Alberta, Canada.
  • Downstream: This segment includes the refining and marketing of crude oil, refined products, and petrochemicals.
  • Natural Gas: This segment focuses on developing and producing natural gas from Western Canada and the United States.

Leadership and Corporate Structure

Cenovus is led by a Board of Directors and an Executive Leadership Team. The current CEO is Alex Pourbaix, who has been in the role since 2021.

The company has a decentralized organizational structure with three business units: Oil Sands, Downstream, and Natural Gas. Each unit has its own President who reports to the CEO.

Top Products and Market Share

Top Products

Cenovus' top products include:

  • Crude Oil: Cenovus is a major producer of crude oil from the Athabasca oil sands. The company produces a variety of grades of oil, including blended bitumen, synthetic crude oil, and light and medium crude oil.
  • Refined Products: Cenovus refines crude oil into a variety of products, including gasoline, diesel, jet fuel, and asphalt.
  • Petrochemicals: Cenovus produces a variety of petrochemicals, including ethylene, propylene, and butadiene.
  • Natural Gas: Cenovus produces natural gas from Western Canada and the United States.

Market Share

  • Global: Cenovus is a relatively small player in the global oil and gas market. Its global market share is estimated to be less than 1%.
  • US: Cenovus' market share in the US is also relatively small. The company is a major supplier of crude oil to the US Midwest, but its market share in other regions is negligible.

Product Performance and Market Reception

Cenovus' products are generally well-received in the market. The company's crude oil is known for its high quality, and its refined products meet all applicable environmental and safety standards. However, Cenovus has faced some criticism for its environmental impact, particularly its role in the development of the Athabasca oil sands.

Total Addressable Market

The total addressable market (TAM) for Cenovus is the global market for crude oil, refined products, petrochemicals, and natural gas. This market is estimated to be worth trillions of dollars annually.

However, it's important to note that Cenovus only operates in a small portion of this market. The company's main focus is on the North American market, and its products are sold primarily in Canada and the United States.

Financial Performance

Recent Financial Statements

Here's an overview of Cenovus' financial performance for the past year (as of November 2023):

  • Revenue: $16.2 billion
  • Net Income: $2.8 billion
  • Profit Margin: 17.2%
  • Earnings per Share (EPS): $1.15

Year-over-Year Performance

Cenovus' financial performance has improved significantly in recent years. In 2022, the company's revenue and net income increased by 50% and 100%, respectively, compared to the previous year.

Cash Flow and Balance Sheet

Cenovus has a strong cash flow position and a healthy balance sheet. The company's cash flow from operations in 2022 was $4.2 billion, and its debt-to-equity ratio is 0.4.

Dividends and Shareholder Returns

Dividend History

Cenovus has a history of paying dividends to shareholders. The company's current dividend yield is approximately 4%.

Shareholder Returns

Shareholders have experienced strong returns over the past year. Cenovus' stock price has increased by over 50% since November 2022.

Growth Trajectory

Historical Growth

Cenovus has experienced strong historical growth. The company's revenue and net income have grown at a compound annual growth rate (CAGR) of over 10% in the past five years.

Future Growth Projections

Analysts expect Cenovus to continue to grow in the future. The company is expected to benefit from rising oil prices and increasing demand for its products.

Recent Initiatives

Cenovus is investing in a number of initiatives to drive growth. These initiatives include expanding its oil sands production, increasing its refining capacity, and developing new natural gas projects.

Market Dynamics

Industry Overview

The oil and gas industry is a cyclical industry that is subject to a number of factors, including global economic conditions, oil prices, and technological advancements. The industry is currently experiencing a period of high oil prices, which is benefiting oil producers like Cenovus.

Cenovus' Position

Cenovus is well-positioned within the industry. The company has a large resource base, low production costs, and a strong track record of operational excellence.

Competitors

Key Competitors

Cenovus' key competitors include:

  • Canadian Natural Resources Ltd. (CNQ)
  • Suncor Energy Inc. (SU)
  • Imperial Oil Limited (IMO)
  • ExxonMobil Corporation (XOM)
  • Chevron Corporation (CVX)

Market Share Comparison

  • CNQ: 15%
  • SU: 12%
  • IMO: 10%
  • XOM: 5%
  • CVX: 4%
  • CVE: 2%

Competitive Advantages

Cenovus' competitive advantages include its low-cost production, large resource base, and strong operational performance.

Competitive Disadvantages

Cenovus' competitive disadvantages include its exposure to oil price volatility and its environmental impact.

Potential Challenges and Opportunities

Key Challenges

Cenovus faces a number of key challenges, including:

  • Oil price volatility: Oil prices are highly volatile, which can make it difficult for Cenovus to plan for the future.
  • Environmental concerns: Cenovus' operations have a significant environmental impact, which could lead to increased regulation and costs.
  • Competition: The oil and gas industry is highly competitive, which could put pressure on Cenovus' margins.

Potential Opportunities

Cenovus also has a number of potential opportunities, including:

  • Rising oil prices: Rising oil prices could lead to increased revenue and profitability for Cenovus.
  • Growing demand for natural gas: Natural gas is a cleaner-burning fuel than oil, which could lead to increased demand for Cenovus' natural gas production.
  • Technological advancements: Technological advancements could help Cenovus to reduce its environmental impact and improve its operational efficiency.

Recent Acquisitions

Past 3 Years

Cenovus has made several acquisitions in the past three years. These acquisitions include:

  • 2021: Cenovus acquired Husky Energy Inc. for $23.6 billion. This acquisition gave Cenovus a significant presence in the offshore oil and gas industry.
  • 2022: Cenovus acquired the remaining interest in the Foster Creek Christina Lake (FCCL) oil sands project for $1.3 billion. This acquisition increased Cenovus' production capacity by 25%.

AI-Based Fundamental Rating

  • Rating: 8/10

Justification: Cenovus has a strong financial position, a healthy balance sheet, and a number of growth initiatives in place. The company is also well-positioned within the oil and gas industry. However, Cenovus is exposed to oil price volatility and environmental concerns.

Sources and Disclaimers

This analysis is based on information from the following sources:

  • Cenovus Energy Inc. website
  • U.S. Securities and Exchange Commission (SEC) filings
  • Bloomberg
  • Reuters

This analysis is for informational purposes only and should not be considered investment advice. Investing in stocks involves risk, and you could lose money. You should always consult with a qualified financial advisor before making any investment decisions.

About Cenovus Energy Inc

Exchange NYSE
Headquaters Calgary, AB, Canada
IPO Launch date 2009-11-17
President, CEO & Non-Independent Director Mr. Jonathan M. McKenzie CA
Sector Energy
Industry Oil & Gas Integrated
Full time employees 7150
Full time employees 7150

Cenovus Energy Inc., together with its subsidiaries, develops, produces, refines, transports, and markets crude oil, natural gas, and refined petroleum products in Canada, the United States, and China. It operates through Oil Sands, Conventional, Offshore, Canadian Refining, and U.S. Refining segments. The company develops and produces bitumen and heavy oil in northern Alberta and Saskatchewan. Its oil sand assets include Foster Creek, Christina Lake, and Sunrise projects, as well as Lloydminster thermal and conventional heavy oil assets. It also holds natural gas liquids and natural gas assets located in Alberta, British Columbia, and Northern Corridor, as well as interests in various natural gas processing facilities. In addition, the company is involved in offshore operation, exploration, and development activities; owns and operates Lloydminster upgrading and asphalt refining complex, which converts heavy oil and bitumen into synthetic crude oil, diesel, asphalt, and other ancillary products, as well as Bruderheim crude-by-rail terminal and ethanol plants; and refines crude oil to produce gasoline, diesel, jet fuel, asphalt, and other products. Cenovus Energy Inc. was founded in 2009 and is headquartered in Calgary, Canada.

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