OVINTIV INC (OVV)
US69047Q1022 - Common Stock
OVV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 205 industry peers in the Oil, Gas & Consumable Fuels industry. OVV has a medium profitability rating, but doesn't score so well on its financial health evaluation. OVV is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
Each year in the past 5 years OVV had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 10.28%, OVV is doing good in the industry, outperforming 75.98% of the companies in the same industry.
The Return On Equity of OVV (19.16%) is better than 71.08% of its industry peers.
With an excellent Return On Invested Capital value of 13.54%, OVV belongs to the best of the industry, outperforming 80.39% of the companies in the same industry.
OVV had an Average Return On Invested Capital over the past 3 years of 17.21%. This is significantly below the industry average of 29.03%.
| 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
With a decent Profit Margin value of 20.15%, OVV is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of OVV has remained more or less at the same level.
Looking at the Operating Margin, with a value of 27.31%, OVV is in line with its industry, outperforming 57.84% of the companies in the same industry.
OVV's Operating Margin has been stable in the last couple of years.
The Gross Margin of OVV (69.97%) is better than 76.96% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so OVV is creating value.
OVV has more shares outstanding than it did 1 year ago.
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
OVV has an Altman-Z score of 1.64. This is a bad value and indicates that OVV is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.64, OVV perfoms like the industry average, outperforming 51.96% of the companies in the same industry.
The Debt to FCF ratio of OVV is 3.57, which is a good value as it means it would take OVV, 3.57 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.57, OVV is in the better half of the industry, outperforming 67.65% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that OVV is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.46, OVV is in line with its industry, outperforming 48.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | 1.64 |
ROIC/WACC1.61
WACC8.4%
2.3 Liquidity
A Current Ratio of 0.52 indicates that OVV may have some problems paying its short term obligations.
The Current ratio of OVV (0.52) is worse than 86.27% of its industry peers.
A Quick Ratio of 0.52 indicates that OVV may have some problems paying its short term obligations.
The Quick ratio of OVV (0.52) is worse than 82.84% of its industry peers.
| 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.
Measured over the past years, OVV shows a quite strong growth in Revenue. The Revenue has been growing by 12.88% on average per year.
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
OVV is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.95% yearly.
Based on estimates for the next years, OVV will show a small growth in Revenue. The Revenue will grow by 2.16% on average per year.
EPS Next Y-14.34%
EPS Next 2Y-9.55%
EPS Next 3Y-2.12%
EPS Next 5Y2.95%
Revenue Next Year-12.95%
Revenue Next 2Y-7.23%
Revenue Next 3Y-3.27%
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
With a Price/Earnings ratio of 5.53, the valuation of OVV can be described as very cheap.
83.82% of the companies in the same industry are more expensive than OVV, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.20. OVV is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 6.79, the valuation of OVV can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OVV indicates a somewhat cheap valuation: OVV is cheaper than 74.51% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.73. OVV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.53 | ||
| Fwd PE | 6.79 |
4.2 Price Multiples
OVV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OVV is cheaper than 82.35% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OVV is valued a bit cheaper than the industry average as 79.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.98 | ||
| EV/EBITDA | 3.1 |
4.3 Compensation for Growth
OVV has a very decent profitability rating, which may justify a higher PE ratio.
OVV's earnings are expected to decrease with -2.12% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.57
EPS Next 2Y-9.55%
EPS Next 3Y-2.12%
5. Dividend
5.1 Amount
OVV has a Yearly Dividend Yield of 3.18%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.14, OVV has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, OVV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
5.2 History
The dividend of OVV is nicely growing with an annual growth rate of 32.53%!
OVV has paid a dividend for at least 10 years, which is a reliable track record.
OVV has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)32.53%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
OVV pays out 15.68% 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.
DP15.68%
EPS Next 2Y-9.55%
EPS Next 3Y-2.12%
OVINTIV INC
NYSE:OVV (12/23/2024, 12:14:54 PM)
37.955
+0.17 (+0.46%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners83.19%
Inst Owner Change0.32%
Ins Owners0.43%
Ins Owner Change0.19%
Market Cap9.88B
Analysts78.52
Price Target60.03 (58.16%)
Short Float %1.65%
Short Ratio1.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
Dividend Growth(5Y)32.53%
DP15.68%
Div Incr Years4
Div Non Decr Years4
Ex-Date
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)6.4%
PT rev (3m)-4.26%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-31.45%
EPS NY rev (1m)15.35%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-13.32%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)-4.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.53 | ||
| Fwd PE | 6.79 | ||
| P/S | 0.98 | ||
| P/FCF | 5.98 | ||
| P/OCF | 2.43 | ||
| P/B | 0.93 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 3.1 |
EPS(TTM)6.86
EY18.07%
EPS(NY)5.59
Fwd EY14.72%
FCF(TTM)6.35
FCFY16.72%
OCF(TTM)15.61
OCFY41.12%
SpS38.91
BVpS40.93
TBVpS31
PEG (NY)N/A
PEG (5Y)0.57
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 | 1.64 |
F-Score7
WACC8.4%
ROIC/WACC1.61
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-14.34%
EPS Next 2Y-9.55%
EPS Next 3Y-2.12%
EPS Next 5Y2.95%
Revenue 1Y (TTM)-7.31%
Revenue growth 3Y21.37%
Revenue growth 5Y12.88%
Sales Q2Q%-12.27%
Revenue Next Year-12.95%
Revenue Next 2Y-7.23%
Revenue Next 3Y-3.27%
Revenue Next 5Y2.16%
EBIT growth 1Y-5.69%
EBIT growth 3Y121.26%
EBIT growth 5Y11.79%
EBIT Next Year77.2%
EBIT Next 3Y23.39%
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%