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Is this Large Market Cap Stock target price reasonable for Cenovus Energy Inc. (NYSE:CVE)?

The company in question is, Cenovus Energy Inc. (NYSE:CVE) currently with a stock price of 14.73 (1.80% today). The market cap for Cenovus Energy Inc. is 12057.85, and is in the sector Basic Materials, and Oil & Gas Drilling & Exploration industry. The target price for Cenovus Energy Inc. is 16.26. Currently Cenovus Energy Inc. is trading with a P/E of 20.38, and a forward P/E of *TBA. Average volume for Cenovus Energy Inc. is 1961.67 and so far today it is 485574.

Performance in the last year for Cenovus Energy Inc. has been 1.26%. For EPS growth, Cenovus Energy Inc. has seen a growth of -23.10%, and is looking to grow in the next year to 75.80%. More long term stats show that EPS growth has been -12.00% over the last five years and could be -5.00% for the next five years. Cenovus Energy Inc. has seen sales growth quarter over quarter at -71.60%, with EPS growth quarter over quarter at 36.70%. The 20-day simple moving average is 2.83%, with the 200-day simple moving average coming to 8.21%.

Since the IPO date for Cenovus Energy Inc. on the 11/17/2009, Cenovus Energy Inc. has seen performance year to date to be 14.66%. With Cenovus Energy Inc. trading at 14.73, the dividend yield is 1.04%, and the EPS is 0.71.

So could Cenovus Energy Inc., be undervalued? Well as said before P/E is 20.38. The PEG is *TBA, P/S is 1.38 and the P/B is at 1.35. The P/cash is 4.18, with P/free cash flow at *TBA.

Cenovus Energy Inc. ability to deal with debt shows that the current ratio is 2.9, and the quick ratio is 2.4. This is with long term debt/equity at 0.53, and total debt/equity at 0.

In terms of margins, Cenovus Energy Inc. has a gross margin of 41.20%, an operating margin of 7.60% and a profit margin of 6.80%.Payout ratio for Cenovus Energy Inc. is 45.20%. Return on assets come to 3.00% with return on investment coming to 8.70%.

Insider ownership for Cenovus Energy Inc., is at 0.10% and institutional ownership comes to 73.10%. Outstanding shares are at 833.3. While shares float is 832.56. The float short is currently 0.94%, and short ratio is 3.98.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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