OVINTIV INC (OVV)
US69047Q1022 - Common Stock
Overall OVV gets a fundamental rating of 4 out of 10. We evaluated OVV against 204 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of OVV while its profitability can be described as average. OVV has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year OVV was profitable.
In the past year OVV had a positive cash flow from operations.
OVV had positive earnings in 4 of the past 5 years.
OVV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
OVV's Return On Assets of 10.28% is fine compared to the rest of the industry. OVV outperforms 75.37% of its industry peers.
Looking at the Return On Equity, with a value of 19.16%, OVV is in the better half of the industry, outperforming 69.46% of the companies in the same industry.
OVV has a better Return On Invested Capital (13.54%) than 78.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OVV is significantly below the industry average of 22.54%.
| 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's Profit Margin of 20.15% is fine compared to the rest of the industry. OVV outperforms 65.52% of its industry peers.
OVV's Profit Margin has been stable in the last couple of years.
OVV has a Operating Margin of 27.31%. This is comparable to the rest of the industry: OVV outperforms 57.14% of its industry peers.
In the last couple of years the Operating Margin of OVV has remained more or less at the same level.
OVV has a Gross Margin of 69.97%. This is in the better half of the industry: OVV outperforms 76.35% of its industry peers.
OVV's Gross Margin has declined in the last couple of years.
| 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.
OVV has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, OVV has more shares outstanding
Compared to 1 year ago, OVV has a worse debt to assets ratio.
2.2 Solvency
OVV has an Altman-Z score of 1.79. 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 1.79, OVV perfoms like the industry average, outperforming 51.72% 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.
OVV's Debt to FCF ratio of 3.57 is fine compared to the rest of the industry. OVV outperforms 67.00% 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.
With a Debt to Equity ratio value of 0.46, OVV perfoms like the industry average, outperforming 50.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | 1.79 |
ROIC/WACC1.64
WACC8.25%
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 87.68% of its industry peers.
A Quick Ratio of 0.52 indicates that OVV may have some problems paying its short term obligations.
With a Quick ratio value of 0.52, OVV is not doing good in the industry: 84.73% 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
OVV is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.98% yearly.
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-25.74%
EPS Next 2Y-12.22%
EPS Next 3Y-2.75%
EPS Next 5Y-9.98%
Revenue Next Year-13.46%
Revenue Next 2Y-8.4%
Revenue Next 3Y-4.46%
Revenue Next 5Y2.16%
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
A Price/Earnings ratio of 6.80 indicates a rather cheap valuation of OVV.
Based on the Price/Earnings ratio, OVV is valued cheaply inside the industry as 81.28% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of OVV to the average of the S&P500 Index (28.96), we can say OVV is valued rather cheaply.
A Price/Forward Earnings ratio of 8.87 indicates a reasonable valuation of OVV.
Based on the Price/Forward Earnings ratio, OVV is valued a bit cheaper than the industry average as 70.44% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.82. OVV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.8 | ||
| Fwd PE | 8.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OVV is valued a bit cheaper than the industry average as 79.80% of the companies are valued more expensively.
OVV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. OVV is cheaper than 77.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.35 | ||
| EV/EBITDA | 3.55 |
4.3 Compensation for Growth
OVV's earnings are expected to decrease with -2.75% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.7
EPS Next 2Y-12.22%
EPS Next 3Y-2.75%
5. Dividend
5.1 Amount
OVV has a Yearly Dividend Yield of 2.68%.
OVV's Dividend Yield is comparable with the industry average which is at 6.45.
OVV's Dividend Yield is a higher than the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
5.2 History
On average, the dividend of OVV grows each year by 32.53%, 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 last 3 years.
Dividend Growth(5Y)32.53%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
OVV pays out 15.68% of its income as dividend. This is a sustainable payout ratio.
DP15.68%
EPS Next 2Y-12.22%
EPS Next 3Y-2.75%
OVINTIV INC
NYSE:OVV (11/22/2024, 11:36:07 AM)
46.67
+0.08 (+0.17%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.15B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.8 | ||
| Fwd PE | 8.87 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.28% | ||
| ROE | 19.16% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.31% | ||
| PM (TTM) | 20.15% | ||
| GM | 69.97% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)27.27%
EPS 3Y171.84%
EPS 5Y
EPS Q2Q%
EPS Next Y-25.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.31%
Revenue growth 3Y21.37%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y