Stock fact sheet · data as of
Cenovus Energy Inc. (CVE): fair value, margin of safety and Wheel Score
Energy · Oil & Gas Integrated · Canada · Defensive
Is CVE undervalued?
CVE closed at 31.97 on 16 Oct 2026, 18% below the GLS average fair value of 39.13 from 9 models (4 of them above the price). That is a moderate margin of safety: the stock passes the "below fair value" rule of the Sunday Scan, and the Wheel Score gives it 20 of the 25 Value points.
The 9 models disagree widely: GLS Growth gives 7.38 while 10 Cap gives 109.59. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files CVE under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for CVE
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 27.75 | -13% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 38.48 | +20% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 40.66 | +27% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 10.08 | -68% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 7.38 | -77% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 109.59 | +243% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 77.88 | +144% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 12.36 | -61% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 28.00 | -12% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -11.86 | -137% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 36.00 | +13% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - CVE passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 1.4 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are moderate - ROIC 8.1%, ROE 12.4%, ROA 6.2% - with debt at 0.54 times equity and a free-cash-flow yield of 9.0%.
The dividend yield is 1.85% at a payout ratio of 23%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Upstream 100% (quarter Q4 FY2020).
Institutional ownership scores 6/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 8.1% |
|---|---|---|---|
| GLS Moat | 1.4 / 10 | ROE | 12.4% |
| Debt / equity | 0.54 | ROA | 6.2% |
| Free-cash-flow yield | 9.0% | Payout ratio | 23% |
| Institutions | 6 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 76: Good
CVE scores 76 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 20/25), Piotroski health (13/20), the GLS moat (2/15), the option premium on offer (20/20) and how easily the stock trades (20/20). Moat (2/15) is the part holding the score back.
Implied volatility is 42% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 140,479 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 9.2M shares a day on a market cap of $59.0B, with a beta of 0.50 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 20 / 25 | 18% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 2 / 15 | moat 1.4/10 | |
| Premium | 20 / 20 | implied volatility 42% | |
| Stability | 20 / 20 | 9.2M shares/day, $59.0B cap, beta 0.50 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Cenovus Energy Inc. reports earnings on 30 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Oil & Gas Integrated
The 12 companies below are the closest to Cenovus Energy Inc. by market cap within the Oil & Gas Integrated industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| IMO Imperial Oil Limited | 129.59 | 112.69 | -15% | 65Good | $62.7B |
| E Eni S.p.A. | 57.44 | 49.74 | -15% | 60Fair | $83.8B |
| SU Suncor Energy Inc. | 75.89 | 92.02 | +18% | 83Prime | $89.6B |
| EC Ecopetrol S.A. | 17.70 | 22,902.35 | +100% | 86Prime | $36.4B |
| EQNR Equinor ASA | 44.92 | 81.52 | +45% | 88Prime | $107.4B |
| BP BP p.l.c. | 48.44 | 69.46 | +30% | 89Prime | $127.0B |
| PBR Petróleo Brasileiro S.A. - Petrobras | 25.94 | 115.09 | +77% | 90Prime | $167.2B |
| YPF YPF Sociedad Anónima | 52.25 | 1,397,751.10 | +100% | 45Weak | $20.5B |
| TTE TotalEnergies SE | 89.64 | 115.53 | +22% | 74Good | $199.6B |
| SHEL Shell plc | 103.58 | 134.16 | +23% | 82Prime | $295.1B |
| CVX Chevron Corporation | 219.39 | 163.30 | -34% | 53Fair | $433.5B |
| NFG National Fuel Gas Company | 78.38 | 65.86 | -19% | 65Good | $7.4B |
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Start free See the Sunday ScanQuestions about CVE
Is CVE undervalued right now?
By the GLS models, moderately: at 31.97 the stock trades 18% below the average fair value of 39.13 (data as of 16 Oct 2026).
What is the Wheel Score of CVE and what does it mean?
CVE scores 76 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for CVE?
39.13 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Cenovus Energy Inc. report earnings next?
The next earnings report is due on 30 Oct 2026 (before the open), 14 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does CVE have listed options, and how liquid are they?
Yes. The nightly snapshot found 420 listed contracts with 140,479 open interest across all expiries and implied volatility of 42% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.