OVINTIV INC (OVV) Stock Fundamental Analysis
NYSE:OVV - New York Stock Exchange, Inc. - US69047Q1022 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to OVV. OVV was compared to 212 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of OVV get a neutral evaluation. Nothing too spectacular is happening here. OVV is cheap, but on the other hand it scores bad on growth.
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.
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 5.84%, OVV is doing good in the industry, outperforming 63.21% of the companies in the same industry.
OVV has a Return On Equity of 10.89%. This is comparable to the rest of the industry: OVV outperforms 58.02% of its industry peers.
With a decent Return On Invested Capital value of 10.26%, OVV is doing good in the industry, outperforming 74.06% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OVV is significantly below the industry average of 27.42%.
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 comparable to the rest of the industry.
OVV's Profit Margin has improved in the last couple of years.
OVV has a Operating Margin of 22.33%. This is comparable to the rest of the industry: OVV outperforms 53.30% of its industry peers.
In the last couple of years the Operating Margin of OVV has grown nicely.
Looking at the Gross Margin, with a value of 69.30%, OVV is in the better half of the industry, outperforming 75.94% 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 just above the Cost of Capital (WACC), so OVV is still creating some value.
OVV has less shares outstanding than it did 1 year ago.
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 1.46. 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 1.46 is in line compared to the rest of the industry. OVV outperforms 53.77% 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 72.17% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that OVV is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.47, OVV is in line with its industry, outperforming 48.58% 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.
OVV's Current ratio of 0.51 is on the low side compared to the rest of the industry. OVV is outperformed by 84.91% of its industry peers.
OVV has a Quick 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.
OVV has a worse Quick ratio (0.51) than 80.66% of its industry peers.
| 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
Based on estimates for the next years, OVV will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.46% on average per year.
OVV is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.88% yearly.
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.
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
A Price/Earnings ratio of 5.86 indicates a rather cheap valuation of OVV.
Based on the Price/Earnings ratio, OVV is valued cheaply inside the industry as 83.02% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.92. OVV is valued rather cheaply when compared to this.
OVV is valuated cheaply with a Price/Forward Earnings ratio of 6.84.
OVV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. OVV is cheaper than 79.25% 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 21.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.86 | ||
| Fwd PE | 6.84 |
4.2 Price Multiples
81.60% of the companies in the same industry are more expensive than OVV, based on the Enterprise Value to EBITDA ratio.
83.96% 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 | 6.3 | ||
| EV/EBITDA | 3.33 |
4.3 Compensation for Growth
OVV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.48
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.
The stock price of OVV dropped by -23.08% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
OVV's Dividend Yield is comparable with the industry average which is at 7.41.
Compared to an average S&P500 Dividend Yield of 2.51, OVV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
5.2 History
On average, the dividend of OVV grows each year by 21.30%, 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 last 3 years.
Dividend Growth(5Y)21.3%
Div Incr Years4
Div Non Decr Years4
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%
NYSE:OVV (4/25/2025, 10:30:08 AM)
34.34
-0.19 (-0.55%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners86.71%
Inst Owner Change0.16%
Ins Owners0.43%
Ins Owner Change6.58%
Market Cap8.94B
Analysts80
Price Target59.96 (74.61%)
Short Float %3.87%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
Yearly Dividend1.19
Dividend Growth(5Y)21.3%
DP28.09%
Div Incr Years4
Div Non Decr Years4
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)-1.21%
PT rev (3m)-0.13%
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 | 5.86 | ||
| Fwd PE | 6.84 | ||
| P/S | 0.98 | ||
| P/FCF | 6.3 | ||
| P/OCF | 2.4 | ||
| P/B | 0.87 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 3.33 |
EPS(TTM)5.86
EY17.06%
EPS(NY)5.02
Fwd EY14.62%
FCF(TTM)5.45
FCFY15.86%
OCF(TTM)14.29
OCFY41.62%
SpS35.16
BVpS39.69
TBVpS29.91
PEG (NY)N/A
PEG (5Y)0.48
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%