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Cenovus Energy Inc. (CVE)

Company Dividend Discount ModelIndustry: Oil & Gas IntegratedSector: Energy

Valuation Snapshot

Stable Growth$115.76 - $341.52$320.05
Multi-Stage$47.02 - $51.44$49.19
Blended Fair Value$184.62
Current Price$23.65
Upside680.65%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS42.09%6.46%0.820.540.490.100.040.140.130.120.090.29
YoY Growth--52.12%9.88%411.93%128.57%-70.38%6.12%8.89%35.54%-68.56%-34.41%
Dividend Yield--4.11%1.99%2.09%0.46%0.45%5.00%1.10%1.14%0.60%1.71%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3,142.00
(-) Cash Dividends Paid (M)1,381.00
(=) Cash Retained (M)1,761.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)628.40392.75235.65
Cash Retained (M)1,761.001,761.001,761.00
(-) Cash Required (M)-628.40-392.75-235.65
(=) Excess Retained (M)1,132.601,368.251,525.35
(/) Shares Outstanding (M)1,829.661,829.661,829.66
(=) Excess Retained per Share0.620.750.83
LTM Dividend per Share0.750.750.75
(+) Excess Retained per Share0.620.750.83
(=) Adjusted Dividend1.371.501.59
WACC / Discount Rate6.75%6.75%6.75%
Growth Rate5.50%6.50%7.50%
Fair Value$115.76$320.05$341.52
Upside / Downside389.46%1,253.30%1,344.06%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3,142.003,346.233,563.733,795.384,042.084,304.814,433.96
Payout Ratio43.95%53.16%62.37%71.58%80.79%90.00%92.50%
Projected Dividends (M)1,381.001,778.932,222.762,716.783,265.623,874.334,101.41

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.75%6.75%6.75%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,650.771,666.421,682.06
Year 2 PV (M)1,914.021,950.481,987.28
Year 3 PV (M)2,170.872,233.182,296.68
Year 4 PV (M)2,421.432,514.552,610.33
Year 5 PV (M)2,665.812,794.572,928.26
PV of Terminal Value (M)75,213.0478,845.8582,617.71
Equity Value (M)86,035.9390,005.0594,122.32
Shares Outstanding (M)1,829.661,829.661,829.66
Fair Value$47.02$49.19$51.44
Upside / Downside98.83%108.00%117.52%

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