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Investor Insights

This summary was created by AI, based on 33 opinions in the last 12 months.

The experts have mixed opinions regarding Cenovus Energy. Some believe it to be a solid choice with potential for growth, while others have expressed concerns about its downstream operations and balance sheet issues. Overall, it appears to have good fundamentals and has benefited from rising oil prices, but there are lingering doubts about its performance and debt reduction timeline.

Consensus
Mixed
Valuation
Fair Value
BUY
Cenovus Energy
SU vs. Cenovus

He owns and likes both. The difference is that SU has downstream operations with gas stations. Cenovus is integrated with long-life reserves in production plus many refineries (which has suffered major compression), so the upstream looks attractive. Both have great balance sheets and free cash flows and pay similar dividends. Another difference: it's unlikely Suncor can be bought whereas maybe Cenovus could. He gives the edge to Suncor.

oil / gas
WATCH
Cenovus Energy

Share price valuation is reasonable. Cash flow multiples are reasonable, but there are better names in energy. Would look elsewhere. 

oil / gas
WEAK BUY
Cenovus Energy

Oil prices weak recently. Lots of Middle East conflict. US energy producers in general have performed much worse than Canadian, partly because of debate on whether shale can sustain production. 

He owns SU, IMO and CNQ. Longer term, the sector is attractive and these companies will generate a ton of cash and strong dividend growth. You can put CVE in this category, but near-term technical questions. He'd love to see price of oil stabilize. It has in last couple of days, but that's geopolitically driven.

Give it some space. Not leading the market, but not technically broken in any way. Generally, gets a little firmer coming into winter. Comfortable owning.

oil / gas
BUY
Cenovus Energy

Its growth projects are on track. It has reached its debt target and 100% of free cash flow can go to shareholders. He expects a double in the base dividend in April. It is cheaper than its peers along with a better balance sheet. It is levered to heavy oil and is a go to name.

oil / gas
PAST TOP PICK
Cenovus Energy
(A Top Pick Sep 29/23, Down 19%)

Will continue to own stock. Excellent company with quality upstream production. Downstream issues continue to be an issue. Overall, business moving in the correct direction. Other companies like Suncor have been attracting like minded capital from investors. Very good management that has experience to fix downstream issues. Company also will reach final debt target, and will return 100% of cash flow to investors. 

oil / gas
WEAK BUY
Cenovus Energy

He prefers oil stocks with a larger cap, instead of this mid-cap. Oil is trading at a low end of the range due to fears of an economic slowdown, but predicts it will be higher in a few years. CVE has sorted out their past problems, though is not as good as CNQ or Suncor.

oil / gas
BUY
Cenovus Energy

There were refinery issues (old, unreliable) which weakened the share price, but ultimately the refineries will generate returns. They have a strong production plan to increase output from their Oil Sands and are near their debt target that will lead to buybacks. A cheap stock with upside.

oil / gas
WEAK BUY
Cenovus Energy
Cenovus vs. CNQ

Good senior producer exposed to the energy patch with long-life assets. But she prefers CNQ for its exposure to the Oil Sands and natural gas; they buy assets that fall out of favour.

oil / gas
PAST TOP PICK
Cenovus Energy
(A Top Pick Sep 29/23, Down 2%)

A 10% weight for him. Favourite large cap in Canada. Very strong team. Downstream operational issues cleared up. 12% free cashflow yield next year at $80 oil. Debt target hit. 100% free cashflow to investors.

oil / gas
HOLD
Cenovus Energy
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

It is a positive signal that as CVE reaches $4.0B in net debt, the company will start to return 100% of its excess fund flows to shareholders. CVE production grew nicely by 8% in the most recent quarter. The share price was under pressure as the company reported a slight earnings miss of $0.57 compared to an expectation of $0.68, in addition, oil prices went down in the last few days and this also affected investors' sentiment for oil stocks. However, we think over a three – five five-year time horizon, CVE should do pretty well from the current level given the planned capital returns.
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oil / gas
BUY
Cenovus Energy
Reported today. Will now return 100% of free cashflow to shareholders.

Q1 increased dividend nicely, special dividend. Met debt obligations, so now going to return a lot to shareholders, impressive. Cheaper (4.5x) than peers (5.1x). 10% shareholder returns vs. peers at 8%. Heavy oil is working, with lots of takeaway capacity; demand is good.

Oil's all over the place, and there are geopolitics. Likes it as a Canadian levered play on heavy oil. On a down day like today, buy a sleeper like this.

oil / gas
DON'T BUY
Cenovus Energy
Don't plans to start returning 100% of cashflow to investors make it more attractive?

If you're thinking about this name, he'd say to start with CNQ first. CVE is higher up on cash costs, so netbacks are lower. More torque-y and leveraged to oil price. A more high-beta version of CNQ. The plans for cashflow basically come from the CNQ playbook, but with a 1.5 beta.

It really depends on your risk profile as an investor. He'll stick with the 1.0 beta in energy.

oil / gas
BUY
Cenovus Energy

Cenovus trades at a discount compared to some of its refining assets, even after they invested in those assets last year. He sold Suncor to buy this last spring.

oil / gas
PAST TOP PICK
Cenovus Energy
(A Top Pick Apr 16/24, Down 3%)

Likes their valuation compared to the other integrated oils. They fixed refining problems from 2023 and their debt has been falling. The will shift from paying shareholders 50% of their free cash flow to 100%, maybe in Q2.

oil / gas
DON'T BUY
Cenovus Energy

Chart's not that attractive, sideways. Better operations elsewhere. Was a leader, but not as strong this year. Yield is 2.7%, less than others.

He prefers a name like CNQ (he owns), or ATH (not owned).

oil / gas
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Cenovus Energy(CVE-T) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 26

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 3

Total Signals / Votes : 30

Stockchase rating for Cenovus Energy is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Cenovus Energy(CVE-T) Frequently Asked Questions

What is Cenovus Energy stock symbol?

Cenovus Energy is a Canadian stock, trading under the symbol CVE-T on the Toronto Stock Exchange (CVE-CT). It is usually referred to as TSX:CVE or CVE-T

Is Cenovus Energy a buy or a sell?

In the last year, 30 stock analysts published opinions about CVE-T. 26 analysts recommended to BUY the stock. 3 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Cenovus Energy.

Is Cenovus Energy a good investment or a top pick?

Cenovus Energy was recommended as a Top Pick by on . Read the latest stock experts ratings for Cenovus Energy.

Why is Cenovus Energy stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Cenovus Energy worth watching?

30 stock analysts on Stockchase covered Cenovus Energy In the last year. It is a trending stock that is worth watching.

What is Cenovus Energy stock price?

On 2024-10-31, Cenovus Energy (CVE-T) stock closed at a price of $22.39.