Why Cenovus Energy Inc (TSE:CVE) Should Have A Place In Your Portfolio

As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Cenovus Energy Inc (TSX:CVE), it is a company that has been able to sustain great financial health, trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Cenovus Energy here.

Good value with adequate balance sheet

CVE is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that CVE has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. CVE appears to have made good use of debt, producing operating cash levels of 0.27x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. CVE’s share price is trading below its true value according to its price-to-equity ratio of 12.76x compared to its industry as well as the wider stock market, making it a relatively cheap stock compared to its peers.

TSX:CVE PE PEG Gauge Jun 18th 18

Next Steps:

For Cenovus Energy, I’ve compiled three important factors you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for CVE’s future growth? Take a look at our free research report of analyst consensus for CVE’s outlook.

2. Historical Performance: What has CVE’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CVE? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.