OVINTIV INC (OVV) Stock Fundamental Analysis
NYSE:OVV - New York Stock Exchange, Inc. - US69047Q1022 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to OVV. OVV was compared to 212 industry peers in the Oil, Gas & Consumable Fuels industry. While OVV is still in line with the averages on profitability rating, there are concerns on its financial health. OVV is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
OVV had positive earnings in the past year.
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
OVV's Return On Assets of 10.28% is fine compared to the rest of the industry. OVV outperforms 76.21% of its industry peers.
OVV has a Return On Equity of 19.16%. This is in the better half of the industry: OVV outperforms 71.84% of its industry peers.
The Return On Invested Capital of OVV (13.54%) is better than 79.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OVV is significantly below the industry average of 28.73%.
| 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 67.96% of its industry peers.
In the last couple of years the Profit Margin of OVV has remained more or less at the same level.
The Operating Margin of OVV (27.31%) is comparable to the rest of the industry.
OVV's Operating Margin has been stable in the last couple of years.
OVV's Gross Margin of 69.97% is fine compared to the rest of the industry. OVV outperforms 76.21% 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
Compared to 5 years ago, OVV has more shares outstanding
OVV has a worse debt/assets ratio than last year.
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 Altman-Z score value of 1.74, OVV perfoms like the industry average, outperforming 52.91% 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.
OVV's Debt to FCF ratio of 3.57 is fine compared to the rest of the industry. OVV outperforms 67.96% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that OVV is not too dependend on debt financing.
OVV has a Debt to Equity ratio (0.46) which is in line with 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
OVV has a Current 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 Current ratio value of 0.52, OVV is not doing good in the industry: 86.89% of the companies in the same industry are doing better.
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.
OVV has a Quick ratio of 0.52. This is amonst the worse of the industry: OVV underperforms 83.50% 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.
OVV shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.70% yearly.
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 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-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
A Price/Earnings ratio of 6.34 indicates a rather cheap valuation of OVV.
Compared to the rest of the industry, the Price/Earnings ratio of OVV indicates a rather cheap valuation: OVV is cheaper than 82.52% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.47, OVV is valued rather cheaply.
OVV is valuated reasonably with a Price/Forward Earnings ratio of 8.12.
Based on the Price/Forward Earnings ratio, OVV is valued a bit cheaper than the industry average as 74.76% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, OVV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.34 | ||
| Fwd PE | 8.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OVV is valued cheaply inside the industry as 80.10% of the companies are valued more expensively.
78.16% 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 | 6.86 | ||
| EV/EBITDA | 3.41 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.65
EPS Next 2Y-11.39%
EPS Next 3Y0.17%
5. Dividend
5.1 Amount
OVV has a Yearly Dividend Yield of 2.74%.
Compared to an average industry Dividend Yield of 6.57, OVV has a dividend in line with its industry peers.
OVV's Dividend Yield is a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
5.2 History
The dividend of OVV is nicely growing with an annual growth rate of 32.53%!
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)32.53%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
15.68% of the earnings are spent on dividend by OVV. This is a low number and 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-11.39%
EPS Next 3Y0.17%
OVINTIV INC
NYSE:OVV (2/5/2025, 9:48:03 AM)
43.52
-0.19 (-0.43%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners83.19%
Inst Owner Change1.03%
Ins Owners0.43%
Ins Owner Change0.19%
Market Cap11.33B
Analysts78.52
Price Target60.37 (38.72%)
Short Float %1.92%
Short Ratio1.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
Yearly Dividend1.19
Dividend Growth(5Y)32.53%
DP15.68%
Div Incr Years4
Div Non Decr Years4
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)0.55%
PT rev (3m)7%
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 | 8.12 | ||
| P/S | 1.12 | ||
| P/FCF | 6.86 | ||
| P/OCF | 2.79 | ||
| P/B | 1.06 | ||
| P/tB | 1.4 | ||
| EV/EBITDA | 3.41 |
EPS(TTM)6.86
EY15.76%
EPS(NY)5.36
Fwd EY12.32%
FCF(TTM)6.35
FCFY14.58%
OCF(TTM)15.61
OCFY35.86%
SpS38.91
BVpS40.93
TBVpS31
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%