OVINTIV INC (OVV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OVV - US69047Q1022 - Common Stock
43.47 USD
+0.71 (+1.66%)
42.74 USD
-0.73 (-1.68%)
We assign a fundamental rating of 5 out of 10 to OVV. OVV was compared to 207 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 valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year OVV was profitable.
- OVV had a positive operating cash flow in the past year.
- 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 Return On Assets value of 1.22%, OVV is not doing good in the industry: 62.80% of the companies in the same industry are doing better.
- OVV has a worse Return On Equity (2.31%) than 63.28% of its industry peers.
- OVV has a better Return On Invested Capital (10.24%) than 84.54% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for OVV is below the industry average of 21.94%.
- The 3 year average ROIC (16.94%) for OVV is well above the current ROIC(10.24%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.22% | ||
| ROE | 2.31% | ||
| ROIC | 10.24% |
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 (2.64%) which is comparable to the rest of the industry.
- OVV's Profit Margin has improved in the last couple of years.
- The Operating Margin of OVV (23.04%) is better than 61.84% of its industry peers.
- In the last couple of years the Operating Margin of OVV has grown nicely.
- With a decent Gross Margin value of 70.19%, OVV is doing good in the industry, outperforming 79.71% of the companies in the same industry.
- 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 | 23.04% | ||
| PM (TTM) | 2.64% | ||
| GM | 70.19% |
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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so OVV is creating value.
- OVV has less shares outstanding than it did 1 year ago.
- OVV has about the same amout of shares outstanding than it did 5 years ago.
- OVV has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.56, we must say that OVV is in the distress zone and has some risk of bankruptcy.
- OVV has a Altman-Z score (1.56) which is comparable to the rest of the industry.
- OVV has a debt to FCF ratio of 3.51. This is a good value and a sign of high solvency as OVV would need 3.51 years to pay back of all of its debts.
- OVV's Debt to FCF ratio of 3.51 is fine compared to the rest of the industry. OVV outperforms 73.43% of its industry peers.
- A Debt/Equity ratio of 0.43 indicates that OVV is not too dependend on debt financing.
- The Debt to Equity ratio of OVV (0.43) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.51 | ||
| Altman-Z | 1.56 |
ROIC/WACC1.13
WACC9.03%
2.3 Liquidity
- A Current Ratio of 0.45 indicates that OVV may have some problems paying its short term obligations.
- OVV's Current ratio of 0.45 is on the low side compared to the rest of the industry. OVV is outperformed by 86.96% of its industry peers.
- A Quick Ratio of 0.45 indicates that OVV may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.45, OVV is doing worse than 85.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
- The earnings per share for OVV have decreased strongly by -29.74% 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.
- OVV shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.66%.
- OVV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.35% yearly.
EPS 1Y (TTM)-29.74%
EPS 3Y5.72%
EPS 5Y12.1%
EPS Q2Q%-44.32%
Revenue 1Y (TTM)-11.66%
Revenue growth 3Y1.87%
Revenue growth 5Y6.35%
Sales Q2Q%-11.1%
3.2 Future
- Based on estimates for the next years, OVV will show a small growth in Earnings Per Share. The EPS will grow by 3.65% on average per year.
- The Revenue is expected to grow by 2.93% on average over the next years.
EPS Next Y-24.92%
EPS Next 2Y-7.35%
EPS Next 3Y4.73%
EPS Next 5Y3.65%
Revenue Next Year-2.4%
Revenue Next 2Y-0.88%
Revenue Next 3Y0.69%
Revenue Next 5Y2.93%
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
- OVV is valuated reasonably with a Price/Earnings ratio of 9.02.
- 85.51% of the companies in the same industry are more expensive than OVV, based on the Price/Earnings ratio.
- OVV is valuated cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 8.64, which indicates a very decent valuation of OVV.
- 88.89% of the companies in the same industry are more expensive than OVV, based on the Price/Forward Earnings ratio.
- OVV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 8.64 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OVV indicates a rather cheap valuation: OVV is cheaper than 85.99% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of OVV indicates a rather cheap valuation: OVV is cheaper than 88.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.42 | ||
| EV/EBITDA | 3.81 |
4.3 Compensation for Growth
- The decent profitability rating of OVV may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.75
EPS Next 2Y-7.35%
EPS Next 3Y4.73%
5. Dividend
5.1 Amount
- OVV has a Yearly Dividend Yield of 2.95%.
- OVV's Dividend Yield is comparable with the industry average which is at 3.73.
- OVV's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
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
- 131.36% of the earnings are spent on dividend by OVV. This is not a sustainable payout ratio.
- OVV's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP131.36%
EPS Next 2Y-7.35%
EPS Next 3Y4.73%
OVINTIV INC / OVV FAQ
What is the ChartMill fundamental rating of OVINTIV INC (OVV) stock?
ChartMill assigns a fundamental rating of 5 / 10 to OVV.
Can you provide the valuation status for OVINTIV INC?
ChartMill assigns a valuation rating of 7 / 10 to OVINTIV INC (OVV). This can be considered as Undervalued.
Can you provide the profitability details for OVINTIV INC?
OVINTIV INC (OVV) has a profitability rating of 6 / 10.
Can you provide the financial health for OVV stock?
The financial health rating of OVINTIV INC (OVV) is 4 / 10.
How sustainable is the dividend of OVINTIV INC (OVV) stock?
The dividend rating of OVINTIV INC (OVV) is 5 / 10 and the dividend payout ratio is 131.36%.