OVINTIV INC (OVV.CA) Stock Fundamental Analysis
Canada - TSX:OVV - US69047Q1022 - Common Stock
59.53 CAD
+0.02 (+0.03%)
Overall OVV gets a fundamental rating of 6 out of 10. We evaluated OVV against 220 industry peers in the Oil, Gas & Consumable Fuels industry. While OVV belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. OVV is valued quite cheap, but it does not seem to be growing. These ratings could make OVV a good candidate for value investing.
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.
Of the past 5 years OVV 4 years were profitable.
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 better than 68.64% of its industry peers.
Looking at the Return On Equity, with a value of 5.73%, OVV is in line with its industry, outperforming 58.64% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.72%, OVV belongs to the best of the industry, outperforming 93.18% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OVV is significantly above the industry average of 6.91%.
The 3 year average ROIC (16.94%) for OVV is well above the current ROIC(10.72%). The reason for the recent decline needs to be investigated.
| 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
Looking at the Profit Margin, with a value of 6.46%, OVV is in line with its industry, outperforming 57.27% 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 (23.61%) is better than 75.00% of its industry peers.
OVV's Operating Margin has improved in the last couple of years.
OVV's Gross Margin of 69.47% is amongst the best of the industry. OVV outperforms 89.09% 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
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.
OVV has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for OVV has been reduced compared to a year ago.
2.2 Solvency
OVV has an Altman-Z score of 1.54. This is a bad value and indicates that OVV is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of OVV (1.54) is better than 64.55% of 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 Debt to FCF ratio of 3.14. This is amongst the best in the industry. OVV outperforms 84.55% 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's Debt to Equity ratio of 0.42 is in line compared to the rest of the industry. OVV outperforms 50.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 1.54 |
ROIC/WACC1.19
WACC9.05%
2.3 Liquidity
A Current Ratio of 0.43 indicates that OVV may have some problems paying its short term obligations.
The Current ratio of OVV (0.43) is worse than 75.91% of its industry peers.
A Quick Ratio of 0.43 indicates that OVV may have some problems paying its short term obligations.
OVV has a worse Quick ratio (0.43) than 75.45% of its industry peers.
| 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.
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 -11.94%.
The Revenue has been growing slightly by 6.35% on average over the past years.
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
The Earnings Per Share is expected to decrease by -1.03% on average over the next years.
OVV is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.04% yearly.
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.
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
Based on the Price/Earnings ratio of 7.59, the valuation of OVV can be described as very cheap.
Based on the Price/Earnings ratio, OVV is valued cheaper than 80.45% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.32, OVV is valued rather cheaply.
OVV is valuated cheaply with a Price/Forward Earnings ratio of 7.33.
OVV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. OVV is cheaper than 79.09% of the companies in the same industry.
OVV is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.89, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.59 | ||
| Fwd PE | 7.33 |
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 90.45% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, OVV is valued cheaply inside the industry as 90.45% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.47 | ||
| EV/EBITDA | 3.69 |
4.3 Compensation for Growth
OVV has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.63
EPS Next 2Y-0.11%
EPS Next 3Y9.88%
5. Dividend
5.1 Amount
OVV has a Yearly Dividend Yield of 2.86%. Purely for dividend investing, there may be better candidates out there.
OVV's Dividend Yield is a higher than the industry average which is at 6.65.
Compared to an average S&P500 Dividend Yield of 2.38, OVV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
5.2 History
The dividend of OVV is nicely growing with an annual growth rate of 21.30%!
OVV has paid a dividend for at least 10 years, which is a reliable track record.
OVV has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)21.3%
Div Incr Years5
Div Non Decr Years5
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.
The Dividend Rate of OVV has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP52.27%
EPS Next 2Y-0.11%
EPS Next 3Y9.88%
TSX:OVV (9/25/2025, 7:00:00 PM)
59.53
+0.02 (+0.03%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners91.36%
Inst Owner ChangeN/A
Ins Owners0.5%
Ins Owner ChangeN/A
Market Cap15.27B
Analysts80
Price Target77.4 (30.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend1.64
Dividend Growth(5Y)21.3%
DP52.27%
Div Incr Years5
Div Non Decr Years5
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)-0.34%
PT rev (3m)5.89%
EPS NQ rev (1m)-1.75%
EPS NQ rev (3m)-2.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.89%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)1.5%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)3.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.59 | ||
| Fwd PE | 7.33 | ||
| P/S | 1.19 | ||
| P/FCF | 6.47 | ||
| P/OCF | 2.8 | ||
| P/B | 1.06 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 3.69 |
EPS(TTM)7.84
EY13.17%
EPS(NY)8.12
Fwd EY13.65%
FCF(TTM)9.21
FCFY15.47%
OCF(TTM)21.27
OCFY35.74%
SpS49.87
BVpS56.2
TBVpS42.23
PEG (NY)N/A
PEG (5Y)0.63
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 | 1.54 |
F-Score6
WACC9.05%
ROIC/WACC1.19
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%