OVINTIV INC (OVV.CA) Stock Fundamental Analysis
TSX:OVV - Toronto Stock Exchange - US69047Q1022 - Common Stock - Currency: CAD
Taking everything into account, OVV scores 6 out of 10 in our fundamental rating. OVV was compared to 219 industry peers in the Oil, Gas & Consumable Fuels industry. OVV scores excellent on profitability, but there are some minor concerns on its financial health. OVV is cheap, but on the other hand it scores bad on growth. These ratings would make OVV suitable for value investing!
1. Profitability
1.1 Basic Checks
OVV had positive earnings in the past year.
OVV had a positive operating cash flow in the past year.
Of the past 5 years OVV 4 years were profitable.
In the past 5 years OVV always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 5.84%, OVV belongs to the best of the industry, outperforming 85.97% of the companies in the same industry.
OVV has a better Return On Equity (10.89%) than 83.71% of its industry peers.
With an excellent Return On Invested Capital value of 10.26%, OVV belongs to the best of the industry, outperforming 90.95% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for OVV is significantly above the industry average of 7.60%.
The 3 year average ROIC (16.89%) for OVV is well above the current ROIC(10.26%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.84% | ||
| ROE | 10.89% | ||
| ROIC | 10.26% |
ROA(3y)13.48%
ROA(5y)1.67%
ROE(3y)26.1%
ROE(5y)-10.54%
ROIC(3y)16.89%
ROIC(5y)12.77%
1.3 Margins
The Profit Margin of OVV (12.29%) is better than 75.11% of its industry peers.
In the last couple of years the Profit Margin of OVV has grown nicely.
The Operating Margin of OVV (22.33%) is better than 74.66% of its industry peers.
OVV's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 69.30%, OVV belongs to the best of the industry, outperforming 86.43% of the companies in the same industry.
OVV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.33% | ||
| PM (TTM) | 12.29% | ||
| GM | 69.3% |
OM growth 3Y8.05%
OM growth 5Y15.34%
PM growth 3Y-9.08%
PM growth 5Y28.72%
GM growth 3Y7.77%
GM growth 5Y-0.35%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so OVV is creating value.
Compared to 1 year ago, OVV has less shares outstanding
Compared to 5 years ago, OVV has about the same amount of shares outstanding.
OVV has a better debt/assets ratio than last year.
2.2 Solvency
OVV has an Altman-Z score of 1.53. This is a bad value and indicates that OVV is not financially healthy and even has some risk of bankruptcy.
OVV's Altman-Z score of 1.53 is fine compared to the rest of the industry. OVV outperforms 67.87% of its industry peers.
OVV has a debt to FCF ratio of 3.85. This is a good value and a sign of high solvency as OVV would need 3.85 years to pay back of all of its debts.
OVV has a better Debt to FCF ratio (3.85) than 81.00% of its industry peers.
OVV has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
OVV has a Debt to Equity ratio of 0.47. This is comparable to the rest of the industry: OVV outperforms 45.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.85 | ||
| Altman-Z | 1.53 |
ROIC/WACC1.21
WACC8.5%
2.3 Liquidity
A Current Ratio of 0.51 indicates that OVV may have some problems paying its short term obligations.
OVV has a worse Current ratio (0.51) than 74.21% of its industry peers.
A Quick Ratio of 0.51 indicates that OVV may have some problems paying its short term obligations.
OVV has a Quick ratio (0.51) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The earnings per share for OVV have decreased strongly by -14.20% in the last year.
OVV shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.10% yearly.
Looking at the last year, OVV shows a very negative growth in Revenue. The Revenue has decreased by -15.91% in the last year.
The Revenue has been growing slightly by 6.35% on average over the past years.
EPS 1Y (TTM)-14.2%
EPS 3Y5.72%
EPS 5Y12.1%
EPS Q2Q%-42.55%
Revenue 1Y (TTM)-15.91%
Revenue growth 3Y1.87%
Revenue growth 5Y6.35%
Sales Q2Q%-30.89%
3.2 Future
The Earnings Per Share is expected to grow by 7.75% on average over the next years.
Based on estimates for the next years, OVV will show a decrease in Revenue. The Revenue will decrease by -0.10% on average per year.
EPS Next Y-6.14%
EPS Next 2Y9.78%
EPS Next 3Y1.97%
EPS Next 5Y7.75%
Revenue Next Year-1.38%
Revenue Next 2Y2.39%
Revenue Next 3Y-0.1%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.60, the valuation of OVV can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of OVV indicates a rather cheap valuation: OVV is cheaper than 89.14% of the companies listed in the same industry.
OVV's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
The Price/Forward Earnings ratio is 7.03, which indicates a rather cheap valuation of OVV.
OVV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. OVV is cheaper than 74.21% of the companies in the same industry.
OVV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.6 | ||
| Fwd PE | 7.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OVV is valued cheaply inside the industry as 86.88% of the companies are valued more expensively.
OVV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. OVV is cheaper than 86.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.1 | ||
| EV/EBITDA | 3.57 |
4.3 Compensation for Growth
The excellent profitability rating of OVV may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y9.78%
EPS Next 3Y1.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.16%, OVV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.94, OVV pays a bit more dividend than its industry peers.
OVV's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
5.2 History
On average, the dividend of OVV grows each year by 21.30%, which is quite nice.
OVV has paid a dividend for at least 10 years, which is a reliable track record.
OVV has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)21.3%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
OVV pays out 28.09% of its income as dividend. This is a sustainable payout ratio.
The dividend of OVV is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.09%
EPS Next 2Y9.78%
EPS Next 3Y1.97%
TSX:OVV (3/7/2025, 7:00:00 PM)
55.45
+1.08 (+1.99%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners86.71%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap14.43B
Analysts80
Price Target87.78 (58.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
Yearly Dividend1.7
Dividend Growth(5Y)21.3%
DP28.09%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)37.96%
Min EPS beat(2)15.15%
Max EPS beat(2)60.77%
EPS beat(4)3
Avg EPS beat(4)18.21%
Min EPS beat(4)-6.89%
Max EPS beat(4)60.77%
EPS beat(8)5
Avg EPS beat(8)12.57%
EPS beat(12)5
Avg EPS beat(12)-0.39%
EPS beat(16)6
Avg EPS beat(16)-1.84%
Revenue beat(2)2
Avg Revenue beat(2)5.49%
Min Revenue beat(2)1.3%
Max Revenue beat(2)9.67%
Revenue beat(4)2
Avg Revenue beat(4)-0.46%
Min Revenue beat(4)-7.18%
Max Revenue beat(4)9.67%
Revenue beat(8)5
Avg Revenue beat(8)3.77%
Revenue beat(12)8
Avg Revenue beat(12)9.91%
Revenue beat(16)10
Avg Revenue beat(16)11.59%
PT rev (1m)1.13%
PT rev (3m)4.09%
EPS NQ rev (1m)0.89%
EPS NQ rev (3m)0.5%
EPS NY rev (1m)2.57%
EPS NY rev (3m)1.3%
Revenue NQ rev (1m)1.5%
Revenue NQ rev (3m)-1.69%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.6 | ||
| Fwd PE | 7.03 | ||
| P/S | 1.1 | ||
| P/FCF | 7.1 | ||
| P/OCF | 2.71 | ||
| P/B | 0.97 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 3.57 |
EPS(TTM)8.4
EY15.15%
EPS(NY)7.89
Fwd EY14.22%
FCF(TTM)7.81
FCFY14.08%
OCF(TTM)20.49
OCFY36.96%
SpS50.41
BVpS56.9
TBVpS42.88
PEG (NY)N/A
PEG (5Y)0.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.84% | ||
| ROE | 10.89% | ||
| ROCE | 12.33% | ||
| ROIC | 10.26% | ||
| ROICexc | 10.28% | ||
| ROICexgc | 12.16% | ||
| OM | 22.33% | ||
| PM (TTM) | 12.29% | ||
| GM | 69.3% | ||
| FCFM | 15.49% |
ROA(3y)13.48%
ROA(5y)1.67%
ROE(3y)26.1%
ROE(5y)-10.54%
ROIC(3y)16.89%
ROIC(5y)12.77%
ROICexc(3y)16.91%
ROICexc(5y)12.82%
ROICexgc(3y)20.7%
ROICexgc(5y)15.91%
ROCE(3y)20.31%
ROCE(5y)15.35%
ROICexcg growth 3Y-6.83%
ROICexcg growth 5Y26.41%
ROICexc growth 3Y-3.59%
ROICexc growth 5Y25.95%
OM growth 3Y8.05%
OM growth 5Y15.34%
PM growth 3Y-9.08%
PM growth 5Y28.72%
GM growth 3Y7.77%
GM growth 5Y-0.35%
F-Score6
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.85 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 100.57% | ||
| Cap/Sales | 25.16% | ||
| Interest Coverage | 4.8 | ||
| Cash Conversion | 85.86% | ||
| Profit Quality | 126.04% | ||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 1.53 |
F-Score6
WACC8.5%
ROIC/WACC1.21
Cap/Depr(3y)138.48%
Cap/Depr(5y)127.55%
Cap/Sales(3y)21.69%
Cap/Sales(5y)22.23%
Profit Quality(3y)83.42%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-14.2%
EPS 3Y5.72%
EPS 5Y12.1%
EPS Q2Q%-42.55%
EPS Next Y-6.14%
EPS Next 2Y9.78%
EPS Next 3Y1.97%
EPS Next 5Y7.75%
Revenue 1Y (TTM)-15.91%
Revenue growth 3Y1.87%
Revenue growth 5Y6.35%
Sales Q2Q%-30.89%
Revenue Next Year-1.38%
Revenue Next 2Y2.39%
Revenue Next 3Y-0.1%
Revenue Next 5YN/A
EBIT growth 1Y-30.88%
EBIT growth 3Y10.06%
EBIT growth 5Y22.67%
EBIT Next Year111.54%
EBIT Next 3Y30.69%
EBIT Next 5Y23.39%
FCF growth 1Y-0.35%
FCF growth 3Y-4.14%
FCF growth 5Y36.89%
OCF growth 1Y-10.7%
OCF growth 3Y5.95%
OCF growth 5Y4.96%