OVINTIV INC (OVV.CA) Stock Fundamental Analysis
TSX:OVV - Toronto Stock Exchange - US69047Q1022 - Common Stock - Currency: CAD
Overall OVV gets a fundamental rating of 5 out of 10. We evaluated OVV against 214 industry peers in the Oil, Gas & Consumable Fuels industry. OVV scores excellent on profitability, but there are concerns on its financial health. OVV is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
OVV had positive earnings in the past year.
In the past year OVV had a positive cash flow from operations.
OVV had positive earnings in 4 of the past 5 years.
In the past 5 years OVV always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.28%, OVV belongs to the top of the industry, outperforming 91.04% of the companies in the same industry.
With an excellent Return On Equity value of 19.16%, OVV belongs to the best of the industry, outperforming 93.53% of the companies in the same industry.
OVV has a Return On Invested Capital of 13.54%. This is amongst the best in the industry. OVV outperforms 94.53% of its industry peers.
OVV had an Average Return On Invested Capital over the past 3 years of 17.21%. This is significantly above the industry average of 7.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.28% | ||
| ROE | 19.16% | ||
| ROIC | 13.54% |
ROA(3y)14.89%
ROA(5y)0.72%
ROE(3y)31.77%
ROE(5y)-12.25%
ROIC(3y)17.21%
ROIC(5y)11.35%
1.3 Margins
OVV has a Profit Margin of 20.15%. This is in the better half of the industry: OVV outperforms 76.12% of its industry peers.
OVV's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 27.31%, OVV is in the better half of the industry, outperforming 77.61% of the companies in the same industry.
In the last couple of years the Operating Margin of OVV has remained more or less at the same level.
The Gross Margin of OVV (69.97%) is better than 85.07% of its industry peers.
In the last couple of years the Gross Margin of OVV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.31% | ||
| PM (TTM) | 20.15% | ||
| GM | 69.97% |
OM growth 3Y82.3%
OM growth 5Y-0.97%
PM growth 3YN/A
PM growth 5Y1.26%
GM growth 3Y-1.44%
GM growth 5Y-2.14%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), OVV is creating value.
Compared to 1 year ago, OVV has more shares outstanding
OVV has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, OVV has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.74, we must say that OVV is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.74, OVV is doing good in the industry, outperforming 65.67% of the companies in the same industry.
OVV has a debt to FCF ratio of 3.57. This is a good value and a sign of high solvency as OVV would need 3.57 years to pay back of all of its debts.
The Debt to FCF ratio of OVV (3.57) is better than 80.10% of its industry peers.
OVV has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
OVV's Debt to Equity ratio of 0.46 is in line compared to the rest of the industry. OVV outperforms 41.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | 1.74 |
ROIC/WACC1.59
WACC8.53%
2.3 Liquidity
A Current Ratio of 0.52 indicates that OVV may have some problems paying its short term obligations.
OVV has a Current ratio of 0.52. This is amonst the worse of the industry: OVV underperforms 80.10% of its industry peers.
OVV has a Quick Ratio of 0.52. 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 Quick ratio value of 0.52, OVV is not doing good in the industry: 73.13% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
OVV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.27%, which is quite impressive.
Measured over the past years, OVV shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.70% on average per year.
The Revenue has decreased by -7.31% in the past year.
OVV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.88% yearly.
EPS 1Y (TTM)27.27%
EPS 3Y171.84%
EPS 5Y9.7%
EPS Q2Q%6.32%
Revenue 1Y (TTM)-7.31%
Revenue growth 3Y21.37%
Revenue growth 5Y12.88%
Sales Q2Q%-12.27%
3.2 Future
The Earnings Per Share is expected to grow by 2.95% on average over the next years.
OVV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.16% yearly.
EPS Next Y-13.83%
EPS Next 2Y-11.39%
EPS Next 3Y0.17%
EPS Next 5Y2.95%
Revenue Next Year-12.38%
Revenue Next 2Y-7.62%
Revenue Next 3Y-3.34%
Revenue Next 5Y2.16%
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 6.34, the valuation of OVV can be described as very cheap.
Based on the Price/Earnings ratio, OVV is valued cheaply inside the industry as 86.57% of the companies are valued more expensively.
OVV is valuated cheaply when we compare the Price/Earnings ratio to 28.35, which is the current average of the S&P500 Index.
OVV is valuated reasonably with a Price/Forward Earnings ratio of 8.11.
OVV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. OVV is cheaper than 62.69% of the companies in the same industry.
OVV is valuated cheaply when we compare the Price/Forward Earnings ratio to 95.00, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.34 | ||
| Fwd PE | 8.11 |
4.2 Price Multiples
OVV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OVV is cheaper than 86.07% of the companies in the same industry.
79.10% of the companies in the same industry are more expensive than OVV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.85 | ||
| EV/EBITDA | 3.39 |
4.3 Compensation for Growth
The decent profitability rating of OVV may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.65
EPS Next 2Y-11.39%
EPS Next 3Y0.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.74%, OVV has a reasonable but not impressive dividend return.
OVV's Dividend Yield is comparable with the industry average which is at 6.59.
OVV's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
5.2 History
On average, the dividend of OVV grows each year by 32.53%, which is quite nice.
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)32.53%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
OVV pays out 15.68% of its income as dividend. This is a sustainable payout ratio.
OVV's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP15.68%
EPS Next 2Y-11.39%
EPS Next 3Y0.17%
OVINTIV INC
TSX:OVV (2/5/2025, 7:00:00 PM)
62.06
-0.53 (-0.85%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners83.19%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap16.16B
Analysts78.52
Price Target86.8 (39.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
Yearly Dividend1.19
Dividend Growth(5Y)32.53%
DP15.68%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)26.94%
Min EPS beat(2)-6.89%
Max EPS beat(2)60.77%
EPS beat(4)3
Avg EPS beat(4)19.24%
Min EPS beat(4)-6.89%
Max EPS beat(4)60.77%
EPS beat(8)4
Avg EPS beat(8)4.2%
EPS beat(12)4
Avg EPS beat(12)-3.69%
EPS beat(16)6
Avg EPS beat(16)-1.13%
Revenue beat(2)1
Avg Revenue beat(2)1.25%
Min Revenue beat(2)-7.18%
Max Revenue beat(2)9.67%
Revenue beat(4)2
Avg Revenue beat(4)3%
Min Revenue beat(4)-7.18%
Max Revenue beat(4)15.13%
Revenue beat(8)5
Avg Revenue beat(8)6.57%
Revenue beat(12)8
Avg Revenue beat(12)15.31%
Revenue beat(16)9
Avg Revenue beat(16)11.06%
PT rev (1m)0.56%
PT rev (3m)11.41%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)-31.76%
EPS NY rev (1m)0.6%
EPS NY rev (3m)19.94%
Revenue NQ rev (1m)0.84%
Revenue NQ rev (3m)-12.59%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.34 | ||
| Fwd PE | 8.11 | ||
| P/S | 1.12 | ||
| P/FCF | 6.85 | ||
| P/OCF | 2.79 | ||
| P/B | 1.06 | ||
| P/tB | 1.4 | ||
| EV/EBITDA | 3.39 |
EPS(TTM)9.79
EY15.78%
EPS(NY)7.65
Fwd EY12.33%
FCF(TTM)9.06
FCFY14.6%
OCF(TTM)22.28
OCFY35.9%
SpS55.54
BVpS58.42
TBVpS44.24
PEG (NY)N/A
PEG (5Y)0.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.28% | ||
| ROE | 19.16% | ||
| ROCE | 16.3% | ||
| ROIC | 13.54% | ||
| ROICexc | 13.55% | ||
| ROICexgc | 15.99% | ||
| OM | 27.31% | ||
| PM (TTM) | 20.15% | ||
| GM | 69.97% | ||
| FCFM | 16.31% |
ROA(3y)14.89%
ROA(5y)0.72%
ROE(3y)31.77%
ROE(5y)-12.25%
ROIC(3y)17.21%
ROIC(5y)11.35%
ROICexc(3y)17.28%
ROICexc(5y)11.39%
ROICexgc(3y)21.64%
ROICexgc(5y)14.22%
ROCE(3y)20.72%
ROCE(5y)13.66%
ROICexcg growth 3Y91.25%
ROICexcg growth 5Y3.08%
ROICexc growth 3Y96.54%
ROICexc growth 5Y4.52%
OM growth 3Y82.3%
OM growth 5Y-0.97%
PM growth 3YN/A
PM growth 5Y1.26%
GM growth 3Y-1.44%
GM growth 5Y-2.14%
F-Score7
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.57 | ||
| Debt/EBITDA | 0.96 | ||
| Cap/Depr | 104.78% | ||
| Cap/Sales | 23.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.19% | ||
| Profit Quality | 80.94% | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 1.74 |
F-Score7
WACC8.53%
ROIC/WACC1.59
Cap/Depr(3y)147.51%
Cap/Depr(5y)133.5%
Cap/Sales(3y)19.15%
Cap/Sales(5y)25%
Profit Quality(3y)79.3%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)27.27%
EPS 3Y171.84%
EPS 5Y9.7%
EPS Q2Q%6.32%
EPS Next Y-13.83%
EPS Next 2Y-11.39%
EPS Next 3Y0.17%
EPS Next 5Y2.95%
Revenue 1Y (TTM)-7.31%
Revenue growth 3Y21.37%
Revenue growth 5Y12.88%
Sales Q2Q%-12.27%
Revenue Next Year-12.38%
Revenue Next 2Y-7.62%
Revenue Next 3Y-3.34%
Revenue Next 5Y2.16%
EBIT growth 1Y-5.69%
EBIT growth 3Y121.26%
EBIT growth 5Y11.79%
EBIT Next Year87.34%
EBIT Next 3Y23.94%
EBIT Next 5Y14.47%
FCF growth 1Y-10.07%
FCF growth 3Y107.62%
FCF growth 5Y34.36%
OCF growth 1Y8.9%
OCF growth 3Y30.04%
OCF growth 5Y12.62%