OVINTIV INC (OVV) Stock Fundamental Analysis
USA - NYSE:OVV - US69047Q1022 - Common Stock
40.67 USD
-1.19 (-2.84%)
40.6459 USD
-0.02 (-0.06%)
Taking everything into account, OVV scores 5 out of 10 in our fundamental rating. OVV was compared to 210 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
OVV had positive earnings in the past year.
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
The Return On Assets of OVV (3.02%) is comparable to the rest of the industry.
OVV has a Return On Equity (5.73%) which is comparable to the rest of the industry.
With an excellent Return On Invested Capital value of 10.72%, OVV belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for OVV is below the industry average of 21.90%.
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's Profit Margin of 6.46% is in line compared to the rest of the industry. OVV outperforms 47.62% of its industry peers.
In the last couple of years the Profit Margin of OVV has grown nicely.
OVV has a Operating Margin (23.61%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of OVV has grown nicely.
OVV has a Gross Margin of 69.47%. This is in the better half of the industry: OVV outperforms 79.05% of its industry peers.
OVV's Gross Margin has been stable in the last couple of years.
| 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
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.
Compared to 1 year ago, OVV has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.51, we must say that OVV is in the distress zone and has some risk of bankruptcy.
OVV has a Altman-Z score (1.51) which is in line with its industry peers.
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.
OVV has a better Debt to FCF ratio (3.14) than 77.62% of its industry peers.
OVV has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
OVV has a Debt to Equity ratio (0.42) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 1.51 |
ROIC/WACC1.2
WACC8.95%
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.
With a Current ratio value of 0.43, OVV is not doing good in the industry: 88.10% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 0.43, OVV is doing worse than 87.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The earnings per share for OVV have decreased strongly by -16.44% in the last year.
The Earnings Per Share has been growing by 12.10% on average over the past years. This is quite good.
Looking at the last year, OVV shows a very negative growth in Revenue. The Revenue has decreased by -11.94% in the last year.
Measured over the past years, OVV shows a small growth in Revenue. The Revenue has been growing by 6.35% on average per year.
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
OVV is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.03% yearly.
Based on estimates for the next years, OVV will show a decrease in Revenue. The Revenue will decrease by -0.04% on average per year.
EPS Next Y-18.96%
EPS Next 2Y-0.11%
EPS Next 3Y9.88%
EPS Next 5Y-1.03%
Revenue Next Year-2.39%
Revenue Next 2Y-2.34%
Revenue Next 3Y-0.04%
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.
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 cheaply with a Price/Earnings ratio of 7.21.
OVV's Price/Earnings ratio is rather cheap when compared to the industry. OVV is cheaper than 87.62% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.27, OVV is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.96, the valuation of OVV can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OVV indicates a rather cheap valuation: OVV is cheaper than 87.14% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of OVV to the average of the S&P500 Index (22.77), we can say OVV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.21 | ||
| Fwd PE | 6.96 |
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 85.24% of the companies listed in the same industry.
89.05% 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 | 6.14 | ||
| 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)0.6
EPS Next 2Y-0.11%
EPS Next 3Y9.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.83%, OVV has a reasonable but not impressive dividend return.
OVV's Dividend Yield is comparable with the industry average which is at 6.15.
Compared to an average S&P500 Dividend Yield of 2.38, OVV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
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 52.27% of its income as dividend. This is a bit on the high side, but may be sustainable.
OVV's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP52.27%
EPS Next 2Y-0.11%
EPS Next 3Y9.88%
40.67
-1.19 (-2.84%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners91.36%
Inst Owner Change-4.11%
Ins Owners0.5%
Ins Owner Change2.85%
Market Cap10.43B
Analysts80
Price Target55.97 (37.62%)
Short Float %2.9%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
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)-0.41%
PT rev (3m)5.14%
EPS NQ rev (1m)-4%
EPS NQ rev (3m)-2.03%
EPS NY rev (1m)-2.72%
EPS NY rev (3m)-0.89%
Revenue NQ rev (1m)2.36%
Revenue NQ rev (3m)1.5%
Revenue NY rev (1m)2.24%
Revenue NY rev (3m)3.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.21 | ||
| Fwd PE | 6.96 | ||
| P/S | 1.13 | ||
| P/FCF | 6.14 | ||
| P/OCF | 2.66 | ||
| P/B | 1.01 | ||
| P/tB | 1.34 | ||
| EV/EBITDA | 3.57 |
EPS(TTM)5.64
EY13.87%
EPS(NY)5.85
Fwd EY14.38%
FCF(TTM)6.63
FCFY16.29%
OCF(TTM)15.31
OCFY37.65%
SpS35.89
BVpS40.45
TBVpS30.4
PEG (NY)N/A
PEG (5Y)0.6
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 | 1.51 |
F-Score6
WACC8.95%
ROIC/WACC1.2
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-18.96%
EPS Next 2Y-0.11%
EPS Next 3Y9.88%
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-2.39%
Revenue Next 2Y-2.34%
Revenue Next 3Y-0.04%
Revenue Next 5YN/A
EBIT growth 1Y-19.66%
EBIT growth 3Y10.55%
EBIT growth 5Y22.99%
EBIT Next Year100.42%
EBIT Next 3Y30.29%
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%