Q: Is CVE:CA a buy ?And why? Thank you
5i Research Answer:
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 generous a 29% dividend increase. At the current debt level, the company is committed to returning significant capital to shareholders though dividends and buybacks. We like CVE here and expect the company to do well if oil prices remain strong.