Another ViewIs CVE a buy ?
Yes; CVE is now trading at 10x times Forward P/E. In 1Q-2024, CVE’s revenue grew slightly by 2% to $13.4B, and EPS came at $0.62 compared to last year of $0.39. The adjusted funds flow per share grew to $1.19 compared to $0.71 last year. The balance sheet is strong, with net debt of $4.8B and net debt/EBITDA of 0.7x. The company has announced a generous 29% dividend increase. At the current debt level, the company is committed to returning significant capital to shareholders through dividends and buybacks. We like CVE here and expect the company to do well if oil prices remain strong. (5iResearch)