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Cenovus Energy Inc (NYSE:CVE)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Cenovus Energy Inc has an F-score of 5 indicating the company's financial situation is typical for a stable company.

CVE' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 8
Current: 5

3
8

During the past 9 years, the highest Piotroski F-Score of Cenovus Energy Inc was 8. The lowest was 3. And the median was 5.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Net Income was -207.073057236 + -191.486115349 + 68.2210060724 + 157.615597221 = $-173 Mil.
Cash Flow from Operations was 158.988676904 + 236.49679585 + 122.947747207 + 245.013819377 = $763 Mil.
Revenue was 2360.01240887 + 2501.52578578 + 2770.07271909 + 2944.64779263 = $10,576 Mil.
Gross Profit was 426.554986816 + 340.250228868 + 437.81392908 + 405.617390005 = $1,610 Mil.
Average Total Assets from the begining of this year (Mar16)
to the end of this year (Mar17) was
(18524.1191592 + 19167.0544439 + 18671.8034788 + 18935.4524327 + 18768.2079629) / 5 = $18813.3274955 Mil.
Total Assets at the begining of this year (Mar16) was $18,524 Mil.
Long-Term Debt was $4,689 Mil.
Total Current Assets was $6,616 Mil.
Total Current Liabilities was $2,168 Mil.
Net Income was 101.900525677 + 1357.60590984 + -467.439655801 + -89.2182065628 = $903 Mil.

Revenue was 3056.20703599 + 2493.59264285 + 2154.88952089 + 1712.53591411 = $9,417 Mil.
Gross Profit was 714.921148403 + 286.446555103 + 91.8836140888 + -15.1217299259 = $1,078 Mil.
Average Total Assets from the begining of last year (Mar15)
to the end of last year (Mar16) was
(20486.6064353 + 20353.4169025 + 20145.4846977 + 18807.7007219 + 18524.1191592) / 5 = $19663.4655833 Mil.
Total Assets at the begining of last year (Mar15) was $20,487 Mil.
Long-Term Debt was $4,622 Mil.
Total Current Assets was $4,561 Mil.
Total Current Liabilities was $1,400 Mil.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Cenovus Energy Inc's current net income (TTM) was -173. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Cenovus Energy Inc's current cash flow from operations (TTM) was 763. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income (TTM)/Total Assets at the Beginning of This Year (Mar16)
=-172.722569292/18524.1191592
=-0.0093242

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Mar15)
=902.848573158/20486.6064353
=0.04407019

Cenovus Energy Inc's return on assets of this year was -0.0093242. Cenovus Energy Inc's return on assets of last year was 0.04407019. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Cenovus Energy Inc's current net income (TTM) was -173. Cenovus Energy Inc's current cash flow from operations (TTM) was 763. ==> 763 > -173 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar17)=Long-Term Debt/Average Total Assets from Mar16 to Mar17
=4688.87726899/18813.3274955
=0.24923168

Gearing (Last Year: Mar16)=Long-Term Debt/Average Total Assets from Mar15 to Mar16
=4621.95675185/19663.4655833
=0.23505301

Cenovus Energy Inc's gearing of this year was 0.24923168. Cenovus Energy Inc's gearing of last year was 0.23505301. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Mar17)=Total Current Assets/Total Current Liabilities
=6616.12011653/2167.77470681
=3.05203308

Current Ratio (Last Year: Mar16)=Total Current Assets/Total Current Liabilities
=4561.46983215/1400.27219114
=3.2575594

Cenovus Energy Inc's current ratio of this year was 3.05203308. Cenovus Energy Inc's current ratio of last year was 3.2575594. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Cenovus Energy Inc's number of shares in issue this year was 833.3. Cenovus Energy Inc's number of shares in issue last year was 833.3. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=1610.23653477/10576.2587064
=0.15225011

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1078.12958767/9417.22511384
=0.11448485

Cenovus Energy Inc's gross margin of this year was 0.15225011. Cenovus Energy Inc's gross margin of last year was 0.11448485. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Total Assets at the Beginning of This Year (Mar16)
=10576.2587064/18524.1191592
=0.5709453

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar15)
=9417.22511384/20486.6064353
=0.45967716

Cenovus Energy Inc's asset turnover of this year was 0.5709453. Cenovus Energy Inc's asset turnover of last year was 0.45967716. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+0+1+0+0+1+1+1
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Cenovus Energy Inc has an F-score of 5 indicating the company's financial situation is typical for a stable company.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Cenovus Energy Inc Annual Data

Dec11Dec12Dec13Dec14Dec15Dec16
Question 1 111110
Question 2 111111
Question 3 100100
Question 4 111111
Question 5 101000
Question 6 111010
Question 7 001000
Question 8 100000
Question 9 110101
F-score 856543

Cenovus Energy Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
Question 1 1001111000
Question 2 1111111111
Question 3 1000011000
Question 4 1111111111
Question 5 0000000000
Question 6 0111111000
Question 7 0000000101
Question 8 0000000001
Question 9 1000000011
F-score 5334455335
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