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 211 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.
1. Profitability
1.1 Basic Checks
In the past year OVV was profitable.
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
OVV has a better Return On Assets (5.84%) than 86.26% of its industry peers.
The Return On Equity of OVV (10.89%) is better than 81.04% of its industry peers.
OVV has a better Return On Invested Capital (10.26%) than 91.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OVV is significantly above the industry average of 7.38%.
The last Return On Invested Capital (10.26%) for OVV is well below the 3 year average (16.89%), which needs to be investigated, but indicates that OVV had better years and this may not be a problem.
| 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
OVV has a better Profit Margin (12.29%) than 75.83% of its industry peers.
In the last couple of years the Profit Margin of OVV has grown nicely.
With a decent Operating Margin value of 22.33%, OVV is doing good in the industry, outperforming 72.51% of the companies in the same industry.
In the last couple of years the Operating Margin of OVV has grown nicely.
With an excellent Gross Margin value of 69.30%, OVV belongs to the best of the industry, outperforming 86.73% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), OVV is creating some value.
OVV has less shares outstanding than it did 1 year ago.
OVV has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for OVV has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.46, we must say that OVV is in the distress zone and has some risk of bankruptcy.
OVV has a Altman-Z score of 1.46. This is in the better half of the industry: OVV outperforms 65.88% of its industry peers.
The Debt to FCF ratio of OVV is 3.85, which is a good value as it means it would take OVV, 3.85 years of fcf income to pay off all of its debts.
OVV has a better Debt to FCF ratio (3.85) than 79.62% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that OVV is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.47, OVV perfoms like the industry average, outperforming 45.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.85 | ||
| Altman-Z | 1.46 |
ROIC/WACC0.95
WACC10.83%
2.3 Liquidity
OVV has a Current Ratio of 0.51. This is a bad value and indicates that OVV is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.51, OVV is not doing good in the industry: 78.67% of the companies in the same industry are doing better.
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
OVV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.20%.
The Earnings Per Share has been growing by 12.10% on average over the past years. This is quite good.
OVV shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.91%.
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 8.46% on average over the next years. This is quite good.
The Revenue is expected to decrease by -1.88% on average over the next years.
EPS Next Y-14.33%
EPS Next 2Y-2.76%
EPS Next 3Y7.33%
EPS Next 5Y8.46%
Revenue Next Year-1.33%
Revenue Next 2Y0.27%
Revenue Next 3Y-1.88%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.89, 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 89.10% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.92. OVV is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.88, which indicates a rather cheap valuation of OVV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OVV indicates a somewhat cheap valuation: OVV is cheaper than 74.88% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.65, OVV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.89 | ||
| Fwd PE | 6.88 |
4.2 Price Multiples
87.20% of the companies in the same industry are more expensive than OVV, based on the Enterprise Value to EBITDA ratio.
OVV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. OVV is cheaper than 86.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.34 | ||
| EV/EBITDA | 3.33 |
4.3 Compensation for Growth
OVV has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y-2.76%
EPS Next 3Y7.33%
5. Dividend
5.1 Amount
OVV has a Yearly Dividend Yield of 3.55%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of OVV has falen by -25.71%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
OVV's Dividend Yield is a higher than the industry average which is at 6.57.
OVV's Dividend Yield is a higher than the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
5.2 History
The dividend of OVV is nicely growing with an annual growth rate of 21.30%!
OVV has been paying a dividend for at least 10 years, so it has 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
28.09% of the earnings are spent on dividend by OVV. This is a low number and sustainable payout ratio.
OVV's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.09%
EPS Next 2Y-2.76%
EPS Next 3Y7.33%
TSX:OVV (4/24/2025, 7:00:00 PM)
47.86
+1.15 (+2.46%)
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 Cap12.46B
Analysts80
Price Target86.28 (80.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
Yearly Dividend1.65
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)-1.71%
PT rev (3m)-0.04%
EPS NQ rev (1m)-27.38%
EPS NQ rev (3m)-19.25%
EPS NY rev (1m)-8.73%
EPS NY rev (3m)-10.15%
Revenue NQ rev (1m)-1.58%
Revenue NQ rev (3m)2.34%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.89 | ||
| Fwd PE | 6.88 | ||
| P/S | 0.98 | ||
| P/FCF | 6.34 | ||
| P/OCF | 2.42 | ||
| P/B | 0.87 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 3.33 |
EPS(TTM)8.12
EY16.97%
EPS(NY)6.96
Fwd EY14.54%
FCF(TTM)7.55
FCFY15.78%
OCF(TTM)19.81
OCFY41.4%
SpS48.73
BVpS55.01
TBVpS41.45
PEG (NY)N/A
PEG (5Y)0.49
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 | 1.46 |
F-Score6
WACC10.83%
ROIC/WACC0.95
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-14.33%
EPS Next 2Y-2.76%
EPS Next 3Y7.33%
EPS Next 5Y8.46%
Revenue 1Y (TTM)-15.91%
Revenue growth 3Y1.87%
Revenue growth 5Y6.35%
Sales Q2Q%-30.89%
Revenue Next Year-1.33%
Revenue Next 2Y0.27%
Revenue Next 3Y-1.88%
Revenue Next 5YN/A
EBIT growth 1Y-30.88%
EBIT growth 3Y10.06%
EBIT growth 5Y22.67%
EBIT Next Year113.87%
EBIT Next 3Y30.77%
EBIT Next 5Y28.96%
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%