OVINTIV INC (OVV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OVV - US69047Q1022 - Common Stock
38.68 USD
+1.7 (+4.6%)
39.4673 USD
+0.79 (+2.04%)
Overall OVV gets a fundamental rating of 5 out of 10. We evaluated OVV against 208 industry peers in the Oil, Gas & Consumable Fuels industry. OVV has only an average score on both its financial health and profitability. OVV is cheap, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years OVV had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.22%, OVV is doing worse than 62.98% of the companies in the same industry.
OVV has a worse Return On Equity (2.31%) than 63.46% of its industry peers.
OVV's Return On Invested Capital of 10.24% is amongst the best of the industry. OVV outperforms 84.13% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OVV is below the industry average of 21.28%.
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
Looking at the Profit Margin, with a value of 2.64%, OVV is in line with its industry, outperforming 41.35% of the companies in the same industry.
In the last couple of years the Profit Margin of OVV has grown nicely.
The Operating Margin of OVV (23.04%) is better than 61.54% of its industry peers.
In the last couple of years the Operating Margin of OVV has grown nicely.
The Gross Margin of OVV (70.19%) is better than 79.33% of its industry peers.
OVV's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for OVV has been reduced compared to 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
Based on the Altman-Z score of 1.48, we must say that OVV is in the distress zone and has some risk of bankruptcy.
OVV has a Altman-Z score (1.48) 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 has a Debt to FCF ratio of 3.51. This is in the better half of the industry: OVV outperforms 73.56% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that OVV is not too dependend on debt financing.
OVV has a Debt to Equity ratio (0.43) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.51 | ||
| Altman-Z | 1.48 |
ROIC/WACC1.17
WACC8.76%
2.3 Liquidity
A Current Ratio of 0.45 indicates that OVV may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.45, OVV is doing worse than 86.54% of the companies in the same industry.
OVV has a Quick Ratio of 0.45. 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 0.45. This is amonst the worse of the industry: OVV underperforms 84.62% of its industry peers.
| 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.
Measured over the past years, OVV shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.10% on average per year.
The Revenue for OVV has decreased by -11.66% in the past year. This is quite bad
The Revenue has been growing slightly by 6.35% on average over the past years.
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 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 small growth in Revenue. The Revenue will grow by 1.77% on average per year.
EPS Next Y-25.15%
EPS Next 2Y-5.14%
EPS Next 3Y6%
EPS Next 5Y-1.03%
Revenue Next Year-2.65%
Revenue Next 2Y-0.51%
Revenue Next 3Y1.77%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 8.02, which indicates a very decent valuation of OVV.
OVV's Price/Earnings ratio is rather cheap when compared to the industry. OVV is cheaper than 87.02% of the companies in the same industry.
OVV is valuated cheaply when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.34, the valuation of OVV can be described as very cheap.
Based on the Price/Forward Earnings ratio, OVV is valued cheaply inside the industry as 90.38% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of OVV to the average of the S&P500 Index (23.70), we can say OVV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.02 | ||
| Fwd PE | 7.34 |
4.2 Price Multiples
OVV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OVV is cheaper than 86.54% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OVV is valued cheaper than 89.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.6 | ||
| EV/EBITDA | 3.52 |
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)0.66
EPS Next 2Y-5.14%
EPS Next 3Y6%
5. Dividend
5.1 Amount
OVV has a Yearly Dividend Yield of 3.06%.
Compared to an average industry Dividend Yield of 3.96, OVV has a dividend in line with its industry peers.
OVV's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
5.2 History
The dividend of OVV is nicely growing with an annual growth rate of 21.30%!
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)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 declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP131.36%
EPS Next 2Y-5.14%
EPS Next 3Y6%
38.68
+1.7 (+4.6%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners91.57%
Inst Owner Change0%
Ins Owners0.43%
Ins Owner Change-3.21%
Market Cap9.80B
Revenue(TTM)8.95B
Net Income(TTM)236.00M
Analysts81.43
Price Target55.18 (42.66%)
Short Float %4.63%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Yearly Dividend1.19
Dividend Growth(5Y)21.3%
DP131.36%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.01%
Min EPS beat(2)5.35%
Max EPS beat(2)10.67%
EPS beat(4)4
Avg EPS beat(4)16.27%
Min EPS beat(4)5.35%
Max EPS beat(4)33.89%
EPS beat(8)7
Avg EPS beat(8)17.75%
EPS beat(12)8
Avg EPS beat(12)8.22%
EPS beat(16)8
Avg EPS beat(16)1.3%
Revenue beat(2)2
Avg Revenue beat(2)11.04%
Min Revenue beat(2)3.15%
Max Revenue beat(2)18.93%
Revenue beat(4)4
Avg Revenue beat(4)7.87%
Min Revenue beat(4)1.3%
Max Revenue beat(4)18.93%
Revenue beat(8)6
Avg Revenue beat(8)5.43%
Revenue beat(12)9
Avg Revenue beat(12)7%
Revenue beat(16)12
Avg Revenue beat(16)13.45%
PT rev (1m)0.7%
PT rev (3m)-0.75%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)-24.02%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-6.99%
Revenue NQ rev (1m)-1.08%
Revenue NQ rev (3m)-4.9%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.02 | ||
| Fwd PE | 7.34 | ||
| P/S | 1.09 | ||
| P/FCF | 6.6 | ||
| P/OCF | 2.63 | ||
| P/B | 0.96 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 3.52 |
EPS(TTM)4.82
EY12.46%
EPS(NY)5.27
Fwd EY13.63%
FCF(TTM)5.86
FCFY15.15%
OCF(TTM)14.68
OCFY37.95%
SpS35.34
BVpS40.41
TBVpS30.28
PEG (NY)N/A
PEG (5Y)0.66
Graham Number66.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.22% | ||
| ROE | 2.31% | ||
| ROCE | 12.31% | ||
| ROIC | 10.24% | ||
| ROICexc | 10.25% | ||
| ROICexgc | 12.11% | ||
| OM | 23.04% | ||
| PM (TTM) | 2.64% | ||
| GM | 70.19% | ||
| FCFM | 16.58% |
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%
ROICexgc growth 3Y-6.42%
ROICexgc 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 Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.51 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 101.96% | ||
| Cap/Sales | 24.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.42% | ||
| Profit Quality | 628.81% | ||
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 1.48 |
F-Score6
WACC8.76%
ROIC/WACC1.17
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)-29.74%
EPS 3Y5.72%
EPS 5Y12.1%
EPS Q2Q%-44.32%
EPS Next Y-25.15%
EPS Next 2Y-5.14%
EPS Next 3Y6%
EPS Next 5Y-1.03%
Revenue 1Y (TTM)-11.66%
Revenue growth 3Y1.87%
Revenue growth 5Y6.35%
Sales Q2Q%-11.1%
Revenue Next Year-2.65%
Revenue Next 2Y-0.51%
Revenue Next 3Y1.77%
Revenue Next 5YN/A
EBIT growth 1Y-25.45%
EBIT growth 3Y10.55%
EBIT growth 5Y22.99%
EBIT Next Year94.65%
EBIT Next 3Y33.06%
EBIT Next 5Y12.76%
FCF growth 1Y19.87%
FCF growth 3Y-4.14%
FCF growth 5Y36.89%
OCF growth 1Y1.03%
OCF growth 3Y5.95%
OCF growth 5Y4.96%
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 8 / 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%.