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 210 industry peers in the Oil, Gas & Consumable Fuels industry. OVV has an average financial health and profitability rating. OVV has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
OVV had positive earnings in the past year.
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
The Return On Assets of OVV (3.20%) is comparable to the rest of the industry.
OVV has a Return On Equity of 6.23%. This is comparable to the rest of the industry: OVV outperforms 44.76% of its industry peers.
OVV's Return On Invested Capital of 11.13% is amongst the best of the industry. OVV outperforms 80.48% of its industry peers.
OVV had an Average Return On Invested Capital over the past 3 years of 16.89%. This is significantly below the industry average of 23.80%.
The last Return On Invested Capital (11.13%) 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 | 3.2% | ||
| ROE | 6.23% | ||
| ROIC | 11.13% |
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
With a Profit Margin value of 6.84%, OVV perfoms like the industry average, outperforming 48.10% of the companies in the same industry.
In the last couple of years the Profit Margin of OVV has grown nicely.
Looking at the Operating Margin, with a value of 23.98%, OVV is in line with its industry, outperforming 56.19% of the companies in the same industry.
OVV's Operating Margin has improved in the last couple of years.
OVV's Gross Margin of 70.16% is fine compared to the rest of the industry. OVV outperforms 79.05% 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 | 23.98% | ||
| PM (TTM) | 6.84% | ||
| GM | 70.16% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, OVV has less shares outstanding
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 1.50. This is a bad value and indicates that OVV is not financially healthy and even has some risk of bankruptcy.
OVV has a Altman-Z score (1.50) which is comparable to the rest of the industry.
OVV has a debt to FCF ratio of 3.45. This is a good value and a sign of high solvency as OVV would need 3.45 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.45, OVV is in the better half of the industry, outperforming 75.71% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that OVV is not too dependend on debt financing.
OVV has a Debt to Equity ratio (0.44) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 1.5 |
ROIC/WACC1.15
WACC9.65%
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.
The Current ratio of OVV (0.43) is worse than 89.05% of its industry peers.
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's Quick ratio of 0.43 is on the low side compared to the rest of the industry. OVV is outperformed by 86.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
OVV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.30%.
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 -14.11%.
The Revenue has been growing slightly by 6.35% on average over the past years.
EPS 1Y (TTM)-9.3%
EPS 3Y5.72%
EPS 5Y12.1%
EPS Q2Q%-0.7%
Revenue 1Y (TTM)-14.11%
Revenue growth 3Y1.87%
Revenue growth 5Y6.35%
Sales Q2Q%1.06%
3.2 Future
Based on estimates for the next years, OVV will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.46% on average per year.
The Revenue is expected to decrease by -1.69% on average over the next years.
EPS Next Y-16.7%
EPS Next 2Y-3.79%
EPS Next 3Y6.95%
EPS Next 5Y8.46%
Revenue Next Year-5.05%
Revenue Next 2Y-3.24%
Revenue Next 3Y-1.69%
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
A Price/Earnings ratio of 6.92 indicates a rather cheap valuation of OVV.
Based on the Price/Earnings ratio, OVV is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
OVV's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.19.
Based on the Price/Forward Earnings ratio of 7.46, the valuation of OVV can be described as very cheap.
OVV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. OVV is cheaper than 80.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.33. OVV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.92 | ||
| Fwd PE | 7.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OVV is valued cheaper than 82.38% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OVV is valued cheaply inside the industry as 84.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.55 | ||
| EV/EBITDA | 3.66 |
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)0.57
EPS Next 2Y-3.79%
EPS Next 3Y6.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.93%, OVV has a reasonable but not impressive dividend return.
OVV's Dividend Yield is comparable with the industry average which is at 6.41.
OVV's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
5.2 History
On average, the dividend of OVV grows each year by 21.30%, which is quite nice.
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
OVV pays out 50.00% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of OVV is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50%
EPS Next 2Y-3.79%
EPS Next 3Y6.95%
40.48
-1.13 (-2.72%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners90.63%
Inst Owner Change0%
Ins Owners0.49%
Ins Owner Change9.24%
Market Cap10.52B
Analysts80.74
Price Target53.28 (31.62%)
Short Float %2.66%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
Yearly Dividend1.19
Dividend Growth(5Y)21.3%
DP50%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.52%
Min EPS beat(2)15.15%
Max EPS beat(2)33.89%
EPS beat(4)3
Avg EPS beat(4)25.73%
Min EPS beat(4)-6.89%
Max EPS beat(4)60.77%
EPS beat(8)6
Avg EPS beat(8)17.12%
EPS beat(12)6
Avg EPS beat(12)3.31%
EPS beat(16)6
Avg EPS beat(16)-0.36%
Revenue beat(2)2
Avg Revenue beat(2)4.7%
Min Revenue beat(2)1.3%
Max Revenue beat(2)8.09%
Revenue beat(4)3
Avg Revenue beat(4)2.97%
Min Revenue beat(4)-7.18%
Max Revenue beat(4)9.67%
Revenue beat(8)6
Avg Revenue beat(8)5.04%
Revenue beat(12)9
Avg Revenue beat(12)11.64%
Revenue beat(16)10
Avg Revenue beat(16)11.34%
PT rev (1m)0.09%
PT rev (3m)-11.13%
EPS NQ rev (1m)-6.04%
EPS NQ rev (3m)-25.27%
EPS NY rev (1m)1.88%
EPS NY rev (3m)-16.38%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)-10.68%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)-3.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.92 | ||
| Fwd PE | 7.46 | ||
| P/S | 1.15 | ||
| P/FCF | 6.55 | ||
| P/OCF | 2.67 | ||
| P/B | 1.04 | ||
| P/tB | 1.4 | ||
| EV/EBITDA | 3.66 |
EPS(TTM)5.85
EY14.45%
EPS(NY)5.42
Fwd EY13.4%
FCF(TTM)6.18
FCFY15.27%
OCF(TTM)15.14
OCFY37.41%
SpS35.31
BVpS38.79
TBVpS28.99
PEG (NY)N/A
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 6.23% | ||
| ROCE | 13.38% | ||
| ROIC | 11.13% | ||
| ROICexc | 11.13% | ||
| ROICexgc | 13.17% | ||
| OM | 23.98% | ||
| PM (TTM) | 6.84% | ||
| GM | 70.16% | ||
| FCFM | 17.5% |
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 Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.45 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 102.64% | ||
| Cap/Sales | 25.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.03% | ||
| Profit Quality | 255.73% | ||
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 1.5 |
F-Score6
WACC9.65%
ROIC/WACC1.15
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)-9.3%
EPS 3Y5.72%
EPS 5Y12.1%
EPS Q2Q%-0.7%
EPS Next Y-16.7%
EPS Next 2Y-3.79%
EPS Next 3Y6.95%
EPS Next 5Y8.46%
Revenue 1Y (TTM)-14.11%
Revenue growth 3Y1.87%
Revenue growth 5Y6.35%
Sales Q2Q%1.06%
Revenue Next Year-5.05%
Revenue Next 2Y-3.24%
Revenue Next 3Y-1.69%
Revenue Next 5YN/A
EBIT growth 1Y-20.46%
EBIT growth 3Y10.06%
EBIT growth 5Y22.67%
EBIT Next Year99.58%
EBIT Next 3Y29.31%
EBIT Next 5Y28.96%
FCF growth 1Y-28.91%
FCF growth 3Y-4.14%
FCF growth 5Y36.89%
OCF growth 1Y-7.39%
OCF growth 3Y5.95%
OCF growth 5Y4.96%