OVINTIV INC (OVV) Stock Fundamental Analysis
NYSE:OVV - New York Stock Exchange, Inc. - US69047Q1022 - Common Stock - Currency: USD
OVV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 209 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 has a bad growth rate and is valued cheaply.
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.
In the past 5 years OVV always reported a positive cash flow from operatings.
1.2 Ratios
OVV's Return On Assets of 5.84% is fine compared to the rest of the industry. OVV outperforms 61.72% of its industry peers.
The Return On Equity of OVV (10.89%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 10.26%, OVV is in the better half of the industry, outperforming 71.77% of the companies in the same industry.
OVV had an Average Return On Invested Capital over the past 3 years of 16.89%. This is significantly below the industry average of 27.48%.
The last Return On Invested Capital (10.26%) for OVV is well below the 3 year average (16.89%), which needs to be investigated, but indicates that OVV had better years and this may not be a problem.
| 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
OVV has a Profit Margin (12.29%) which is in line with its industry peers.
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 52.15% of its industry peers.
In the last couple of years the Operating Margin of OVV has grown nicely.
OVV has a better Gross Margin (69.30%) than 77.99% 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 | 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
OVV has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating 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 1.53. This is a bad value and indicates that OVV is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.53, OVV is in line with its industry, outperforming 55.50% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 3.85, OVV is in the better half of the industry, outperforming 70.81% of the companies in the same industry.
OVV has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
OVV has a Debt to Equity ratio (0.47) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.85 | ||
| Altman-Z | 1.53 |
ROIC/WACC1.21
WACC8.5%
2.3 Liquidity
A Current Ratio of 0.51 indicates that OVV may have some problems paying its short term obligations.
The Current ratio of OVV (0.51) is worse than 86.12% of its industry peers.
A Quick Ratio of 0.51 indicates that OVV may have some problems paying its short term obligations.
With a Quick ratio value of 0.51, OVV is not doing good in the industry: 82.30% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
OVV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.20%.
OVV shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.10% yearly.
OVV shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.91%.
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
OVV is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.75% yearly.
Based on estimates for the next years, OVV will show a decrease in Revenue. The Revenue will decrease by -0.10% on average per year.
EPS Next Y-6.14%
EPS Next 2Y9.78%
EPS Next 3Y1.97%
EPS Next 5Y7.75%
Revenue Next Year-1.38%
Revenue Next 2Y2.39%
Revenue Next 3Y-0.1%
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 6.58, the valuation of OVV can be described as very cheap.
Based on the Price/Earnings ratio, OVV is valued cheaper than 81.34% 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 29.35.
OVV is valuated cheaply with a Price/Forward Earnings ratio of 7.01.
Based on the Price/Forward Earnings ratio, OVV is valued a bit cheaper than 78.47% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, OVV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.58 | ||
| Fwd PE | 7.01 |
4.2 Price Multiples
OVV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OVV is cheaper than 80.38% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OVV is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.08 | ||
| EV/EBITDA | 3.57 |
4.3 Compensation for Growth
The decent profitability rating of OVV may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.54
EPS Next 2Y9.78%
EPS Next 3Y1.97%
5. Dividend
5.1 Amount
OVV has a Yearly Dividend Yield of 3.16%.
OVV's Dividend Yield is comparable with the industry average which is at 7.12.
Compared to an average S&P500 Dividend Yield of 2.33, OVV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
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
OVV pays out 28.09% of its income as dividend. This is a sustainable payout ratio.
OVV's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.09%
EPS Next 2Y9.78%
EPS Next 3Y1.97%
38.55
+0.56 (+1.47%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners86.71%
Inst Owner Change3.26%
Ins Owners0.43%
Ins Owner Change0%
Market Cap10.04B
Analysts80
Price Target60.69 (57.43%)
Short Float %2.67%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
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)0.54%
PT rev (3m)1.1%
EPS NQ rev (1m)0.89%
EPS NQ rev (3m)0.5%
EPS NY rev (1m)2.57%
EPS NY rev (3m)1.3%
Revenue NQ rev (1m)1.5%
Revenue NQ rev (3m)-1.69%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.58 | ||
| Fwd PE | 7.01 | ||
| P/S | 1.1 | ||
| P/FCF | 7.08 | ||
| P/OCF | 2.7 | ||
| P/B | 0.97 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 3.57 |
EPS(TTM)5.86
EY15.2%
EPS(NY)5.5
Fwd EY14.27%
FCF(TTM)5.45
FCFY14.13%
OCF(TTM)14.29
OCFY37.08%
SpS35.16
BVpS39.69
TBVpS29.91
PEG (NY)N/A
PEG (5Y)0.54
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 | 1.53 |
F-Score6
WACC8.5%
ROIC/WACC1.21
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-6.14%
EPS Next 2Y9.78%
EPS Next 3Y1.97%
EPS Next 5Y7.75%
Revenue 1Y (TTM)-15.91%
Revenue growth 3Y1.87%
Revenue growth 5Y6.35%
Sales Q2Q%-30.89%
Revenue Next Year-1.38%
Revenue Next 2Y2.39%
Revenue Next 3Y-0.1%
Revenue Next 5YN/A
EBIT growth 1Y-30.88%
EBIT growth 3Y10.06%
EBIT growth 5Y22.67%
EBIT Next Year111.54%
EBIT Next 3Y30.69%
EBIT Next 5Y23.39%
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%