Cenovus Energy (Cenovus Energy) Beneish M-Score : -2.59 (As of Apr. 26, 2024)

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What is Cenovus Energy Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.59 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Cenovus Energy's Beneish M-Score or its related term are showing as below:

CVE' s Beneish M-Score Range Over the Past 10 Years
Min: -7.82 Med: -2.58 Max: -1.42
Current: -2.59

During the past 13 years, the highest Beneish M-Score of Cenovus Energy was -1.42. The lowest was -7.82. And the median was -2.58.

Cenovus Energy Beneish M-Score Historical Data

The historical data trend for Cenovus Energy's Beneish M-Score 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.

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Cenovus Energy Beneish M-Score Chart

Cenovus Energy Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.39

-7.82

-1.42

-2.81

-2.59

Cenovus Energy Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.81	-3.07	-3.23	-2.66	-2.59

Competitive Comparison of Cenovus Energy's Beneish M-Score

For the Oil & Gas Integrated subindustry, Cenovus Energy's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Cenovus Energy's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Cenovus Energy's Beneish M-Score falls into.

Cenovus Energy Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Cenovus Energy for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.3591

0.528 * 1.0534

0.404 * 1.0665

0.892 * 0.749

0.115 * 1.0576

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.033

4.679 * -0.060477

0.327 * 0.8443

-2.55

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $2,392 Mil.
Revenue was 10462.135 + 11611.854 + 9685.383 + 9397.062 = $41,156 Mil.
Gross Profit was 1970.781 + 3396.645 + 2114.256 + 1835.855 = $9,318 Mil.
Total Current Assets was $7,236 Mil.
Total Assets was $40,187 Mil.
Property, Plant and Equipment(Net PPE) was $29,568 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,446 Mil.
Selling, General, & Admin. Expense(SGA) was $510 Mil.
Total Current Liabilities was $4,629 Mil.
Long-Term Debt & Capital Lease Obligation was $7,057 Mil.
Net Income was 553.816 + 1377.577 + 651.814 + 464.81 = $3,048 Mil.
Non Operating Income was 105.098 + -185.5 + 82.794 + -32.157 = $-30 Mil.
Cash Flow from Operations was 2195.886 + 2023.502 + 1497.817 + -209.018 = $5,508 Mil.

Total Receivables was $2,350 Mil.
Revenue was 10995.951 + 14016.793 + 16203.53 + 13730.648 = $54,947 Mil.
Gross Profit was 2173.721 + 2843.541 + 4365.042 + 3721.169 = $13,103 Mil.
Total Current Assets was $9,150 Mil.
Total Assets was $41,126 Mil.
Property, Plant and Equipment(Net PPE) was $28,729 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,565 Mil.
Selling, General, & Admin. Expense(SGA) was $659 Mil.
Total Current Liabilities was $5,904 Mil.
Long-Term Debt & Capital Lease Obligation was $8,258 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(2391.92 / 41156.434)	/	(2349.65 / 54946.922)
	=	0.058118	/	0.042762
	=	1.3591

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(13103.473 / 54946.922)	/	(9317.537 / 41156.434)
	=	0.238475	/	0.226393
	=	1.0534

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (7236.136 + 29567.68) / 40187.09)	/	(1 - (9149.798 + 28729.481) / 41125.506)
	=	0.084188	/	0.078935
	=	1.0665

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	41156.434	/	54946.922
	=	0.749

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(3564.677 / (3564.677 + 28729.481))	/	(3445.701 / (3445.701 + 29567.68))
	=	0.110381	/	0.104373
	=	1.0576

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(509.891 / 41156.434)	/	(658.96 / 54946.922)
	=	0.012389	/	0.011993
	=	1.033

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((7056.5 + 4628.801) / 40187.09)	/	((8258.373 + 5904.306) / 41125.506)
	=	0.290773	/	0.344377
	=	0.8443

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(3048.017 - -29.765	-	5508.187)	/	40187.09
	=	-0.060477

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Cenovus Energy has a M-score of -2.55 suggests that the company is unlikely to be a manipulator.

Cenovus Energy Beneish M-Score Related Terms

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Cenovus Energy (Cenovus Energy) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Cenovus Energy Inc (NYSE:CVE) » Definitions » Beneish M-Score

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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.