Cenovus Energy (Cenovus Energy) Forward Rate of Return (Yacktman) %

: 0.00% (As of Dec. 2023)

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Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Cenovus Energy's forward rate of return for was 0.00%.

The historical rank and industry rank for Cenovus Energy's Forward Rate of Return (Yacktman) % or its related term are showing as below:

CVE' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -19.63 Med: -5.32 Max: 10.01
Current: -19.52

During the past 13 years, Cenovus Energy's highest Forward Rate of Return was 10.01. The lowest was -19.63. And the median was -5.32.

CVE's Forward Rate of Return (Yacktman) % is ranked worse than
87.07% of 588 companies
in the Oil & Gas industry
Industry Median: 12.075 vs CVE: -19.52

Unlike the Earnings Yield %, the Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.

Cenovus Energy Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Cenovus Energy's Forward Rate of Return (Yacktman) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Cenovus Energy Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Forward Rate of Return (Yacktman) %

Cenovus Energy Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Forward Rate of Return (Yacktman) %																-	-	-	-	-

Competitive Comparison

For the Oil & Gas Integrated subindustry, Cenovus Energy's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Cenovus Energy Forward Rate of Return (Yacktman) % Distribution

For the Oil & Gas industry and Energy sector, Cenovus Energy's Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where Cenovus Energy's Forward Rate of Return (Yacktman) % falls into.

Cenovus Energy Forward Rate of Return (Yacktman) % Calculation

Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

Cenovus Energy's Forward Rate of Return of Dec. 2023 is

Forward Rate of Return	=	Normalized Free Cash Flow	/	Price	+	5-Year EBITDA Growth Rate
	=	0.22514286	/	16.65	+	-0.2482
	=	-23.47 %

Cenovus Energy (NYSE:CVE) Forward Rate of Return (Yacktman) % Explanation

Unlike the Earnings Yield, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.

Be Aware

In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.

Cenovus Energy Forward Rate of Return (Yacktman) % Related Terms

Thank you for viewing the detailed overview of Cenovus Energy's Forward Rate of Return (Yacktman) % provided by GuruFocus.com. Please click on the following links to see related term pages.

Cenovus Energy (Cenovus Energy) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Cenovus Energy Inc (NYSE:CVE) » Definitions » Forward Rate of Return (Yacktman) %

Comparable Companies

Traded in Other Exchanges

CXD:Germany CXD:Germany CVE.PR.B.PFD:Canada CVE.PR.A.PFD:Canada CVE.PR.C.PFD:Canada CVE.PR.G.PFD:Canada CVE.PR.E.PFD:Canada CVE:Canada

Address

225 - 6 Avenue SW, Suite 4100, Calgary, AB, CAN, T2P 1N2

Website

https://www.cenovus.com

Cenovus Energy is an integrated oil company, focused on creating value through the development of its oil sands assets. The company also engages in production of conventional crude oil, natural gas liquids, and natural gas in Alberta, Canada, with refining operations in the U.S. Net upstream production averaged 786 thousand barrels of oil equivalent per day in 2022. The company had upstream projects across Western Canada; crude oil production and natural gas and NGLs production offshore China and Indonesia. The downstream operations include upgrading and refining operations in Canada and the U.S., and commercial fuel operations across Canada.