OVINTIV INC (OVV) Stock Fundamental Analysis
USA - NYSE:OVV - US69047Q1022 - Common Stock
36.15 USD
-0.12 (-0.33%)
36.3414 USD
+0.19 (+0.53%)
We assign a fundamental rating of 5 out of 10 to OVV. OVV was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. OVV has an average financial health and profitability rating. 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.
Of the past 5 years OVV 4 years were profitable.
In the past 5 years OVV always reported a positive cash flow from operatings.
1.2 Ratios
OVV's Return On Assets of 3.02% is in line compared to the rest of the industry. OVV outperforms 50.24% of its industry peers.
Looking at the Return On Equity, with a value of 5.73%, OVV is in line with its industry, outperforming 45.50% of the companies in the same industry.
OVV's Return On Invested Capital of 10.72% is amongst the best of the industry. OVV outperforms 82.46% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OVV is below the industry average of 21.53%.
The last Return On Invested Capital (10.72%) for OVV is well below the 3 year average (16.94%), which needs to be investigated, but indicates that OVV had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.02% | ||
| ROE | 5.73% | ||
| ROIC | 10.72% |
ROA(3y)13.48%
ROA(5y)1.67%
ROE(3y)26.1%
ROE(5y)-10.54%
ROIC(3y)16.94%
ROIC(5y)12.8%
1.3 Margins
OVV has a Profit Margin (6.46%) which is comparable to the rest of the industry.
OVV's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 23.61%, OVV is in the better half of the industry, outperforming 60.66% of the companies in the same industry.
OVV's Operating Margin has improved in the last couple of years.
OVV's Gross Margin of 69.47% is fine compared to the rest of the industry. OVV outperforms 78.67% of its industry peers.
In the last couple of years the Gross Margin of OVV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.61% | ||
| PM (TTM) | 6.46% | ||
| GM | 69.47% |
OM growth 3Y8.52%
OM growth 5Y15.64%
PM growth 3Y-9.08%
PM growth 5Y28.72%
GM growth 3Y7.77%
GM growth 5Y-0.35%
2. Health
2.1 Basic Checks
OVV has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, OVV has less shares outstanding
OVV has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for OVV has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.43, we must say that OVV is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.43, OVV perfoms like the industry average, outperforming 54.98% of the companies in the same industry.
OVV has a debt to FCF ratio of 3.14. This is a good value and a sign of high solvency as OVV would need 3.14 years to pay back of all of its debts.
The Debt to FCF ratio of OVV (3.14) is better than 77.25% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that OVV is not too dependend on debt financing.
OVV has a Debt to Equity ratio (0.42) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 1.43 |
ROIC/WACC1.22
WACC8.78%
2.3 Liquidity
OVV has a Current Ratio of 0.43. This is a bad value and indicates that OVV is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.43, OVV is doing worse than 88.63% of the companies in the same industry.
OVV has a Quick Ratio of 0.43. 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 (0.43) than 87.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
OVV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.44%.
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 -11.94% in the last year.
OVV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.35% yearly.
EPS 1Y (TTM)-16.44%
EPS 3Y5.72%
EPS 5Y12.1%
EPS Q2Q%-17.07%
Revenue 1Y (TTM)-11.94%
Revenue growth 3Y1.87%
Revenue growth 5Y6.35%
Sales Q2Q%1.31%
3.2 Future
Based on estimates for the next years, OVV will show a decrease in Earnings Per Share. The EPS will decrease by -1.03% on average per year.
Based on estimates for the next years, OVV will show a decrease in Revenue. The Revenue will decrease by -0.12% on average per year.
EPS Next Y-19.53%
EPS Next 2Y-0.36%
EPS Next 3Y8.35%
EPS Next 5Y-1.03%
Revenue Next Year-2.79%
Revenue Next 2Y-2.54%
Revenue Next 3Y-0.12%
Revenue Next 5YN/A
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 6.41, the valuation of OVV can be described as very cheap.
Based on the Price/Earnings ratio, OVV is valued cheaper than 88.63% of the companies in the same industry.
OVV's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.77.
The Price/Forward Earnings ratio is 6.21, which indicates a rather cheap valuation of OVV.
OVV's Price/Forward Earnings ratio is rather cheap when compared to the industry. OVV is cheaper than 88.63% 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 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.41 | ||
| Fwd PE | 6.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OVV is valued cheaper than 86.73% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OVV is valued cheaper than 90.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.46 | ||
| EV/EBITDA | 3.3 |
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)0.53
EPS Next 2Y-0.36%
EPS Next 3Y8.35%
5. Dividend
5.1 Amount
OVV has a Yearly Dividend Yield of 3.29%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.30, 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 | 3.29% |
5.2 History
On average, the dividend of OVV grows each year by 21.30%, 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)21.3%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
52.27% of the earnings are spent on dividend by OVV. This is a bit on the high side, but may be sustainable.
The Dividend Rate of OVV has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP52.27%
EPS Next 2Y-0.36%
EPS Next 3Y8.35%
36.15
-0.12 (-0.33%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners89.12%
Inst Owner Change0.19%
Ins Owners0.5%
Ins Owner Change2.85%
Market Cap9.27B
Analysts80
Price Target55.6 (53.8%)
Short Float %3.2%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
Yearly Dividend1.19
Dividend Growth(5Y)21.3%
DP52.27%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.62%
Min EPS beat(2)5.35%
Max EPS beat(2)33.89%
EPS beat(4)4
Avg EPS beat(4)28.79%
Min EPS beat(4)5.35%
Max EPS beat(4)60.77%
EPS beat(8)6
Avg EPS beat(8)16.25%
EPS beat(12)7
Avg EPS beat(12)5.02%
EPS beat(16)7
Avg EPS beat(16)0.22%
Revenue beat(2)2
Avg Revenue beat(2)13.51%
Min Revenue beat(2)8.09%
Max Revenue beat(2)18.93%
Revenue beat(4)4
Avg Revenue beat(4)9.5%
Min Revenue beat(4)1.3%
Max Revenue beat(4)18.93%
Revenue beat(8)6
Avg Revenue beat(8)5.61%
Revenue beat(12)9
Avg Revenue beat(12)9.95%
Revenue beat(16)11
Avg Revenue beat(16)12.76%
PT rev (1m)-0.66%
PT rev (3m)2.83%
EPS NQ rev (1m)-3.33%
EPS NQ rev (3m)-11.01%
EPS NY rev (1m)-0.7%
EPS NY rev (3m)-3.4%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)1.3%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)2.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.41 | ||
| Fwd PE | 6.21 | ||
| P/S | 1.01 | ||
| P/FCF | 5.46 | ||
| P/OCF | 2.36 | ||
| P/B | 0.89 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 3.3 |
EPS(TTM)5.64
EY15.6%
EPS(NY)5.82
Fwd EY16.09%
FCF(TTM)6.63
FCFY18.33%
OCF(TTM)15.31
OCFY42.36%
SpS35.89
BVpS40.45
TBVpS30.4
PEG (NY)N/A
PEG (5Y)0.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.02% | ||
| ROE | 5.73% | ||
| ROCE | 12.89% | ||
| ROIC | 10.72% | ||
| ROICexc | 10.74% | ||
| ROICexgc | 12.68% | ||
| OM | 23.61% | ||
| PM (TTM) | 6.46% | ||
| GM | 69.47% | ||
| FCFM | 18.46% |
ROA(3y)13.48%
ROA(5y)1.67%
ROE(3y)26.1%
ROE(5y)-10.54%
ROIC(3y)16.94%
ROIC(5y)12.8%
ROICexc(3y)16.95%
ROICexc(5y)12.84%
ROICexgc(3y)20.76%
ROICexgc(5y)15.94%
ROCE(3y)20.37%
ROCE(5y)15.38%
ROICexcg growth 3Y-6.42%
ROICexcg growth 5Y26.74%
ROICexc growth 3Y-3.16%
ROICexc growth 5Y26.28%
OM growth 3Y8.52%
OM growth 5Y15.64%
PM growth 3Y-9.08%
PM growth 5Y28.72%
GM growth 3Y7.77%
GM growth 5Y-0.35%
F-Score6
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.14 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 99.24% | ||
| Cap/Sales | 24.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.89% | ||
| Profit Quality | 285.71% | ||
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 1.43 |
F-Score6
WACC8.78%
ROIC/WACC1.22
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)-16.44%
EPS 3Y5.72%
EPS 5Y12.1%
EPS Q2Q%-17.07%
EPS Next Y-19.53%
EPS Next 2Y-0.36%
EPS Next 3Y8.35%
EPS Next 5Y-1.03%
Revenue 1Y (TTM)-11.94%
Revenue growth 3Y1.87%
Revenue growth 5Y6.35%
Sales Q2Q%1.31%
Revenue Next Year-2.79%
Revenue Next 2Y-2.54%
Revenue Next 3Y-0.12%
Revenue Next 5YN/A
EBIT growth 1Y-19.66%
EBIT growth 3Y10.55%
EBIT growth 5Y22.99%
EBIT Next Year99.63%
EBIT Next 3Y29.68%
EBIT Next 5Y12.76%
FCF growth 1Y5.13%
FCF growth 3Y-4.14%
FCF growth 5Y36.89%
OCF growth 1Y5.14%
OCF growth 3Y5.95%
OCF growth 5Y4.96%