OVINTIV INC (OVV.CA) Stock Fundamental Analysis
TSX:OVV - Toronto Stock Exchange - US69047Q1022 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to OVV. OVV was compared to 208 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 cheap, but on the other hand it scores bad on growth. With these ratings, OVV could be worth investigating further for value investing!.
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.
OVV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
OVV has a Return On Assets of 3.02%. This is in the better half of the industry: OVV outperforms 66.35% of its industry peers.
OVV's Return On Equity of 5.73% is in line compared to the rest of the industry. OVV outperforms 57.21% of its industry peers.
OVV has a Return On Invested Capital of 10.72%. This is amongst the best in the industry. OVV outperforms 91.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OVV is significantly above the industry average of 7.31%.
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
OVV has a Profit Margin (6.46%) which is comparable to the rest of the industry.
OVV's Profit Margin has improved in the last couple of years.
OVV has a Operating Margin of 23.61%. This is in the better half of the industry: OVV outperforms 73.56% of its industry peers.
In the last couple of years the Operating Margin of OVV has grown nicely.
Looking at the Gross Margin, with a value of 69.47%, OVV belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
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.
The number of shares outstanding for OVV remains at a similar level compared to 5 years ago.
The debt/assets ratio for OVV has been reduced compared to a year ago.
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.
With a decent Altman-Z score value of 1.48, OVV is doing good in the industry, outperforming 64.90% of the companies in the same industry.
The Debt to FCF ratio of OVV is 3.14, which is a good value as it means it would take OVV, 3.14 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of OVV (3.14) is better than 81.73% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 1.48 |
ROIC/WACC1.15
WACC9.36%
2.3 Liquidity
A Current Ratio of 0.43 indicates that OVV may have some problems paying its short term obligations.
OVV's Current ratio of 0.43 is on the low side compared to the rest of the industry. OVV is outperformed by 77.40% of its industry peers.
A Quick Ratio of 0.43 indicates that OVV may have some problems paying its short term obligations.
With a Quick ratio value of 0.43, OVV is not doing good in the industry: 76.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
OVV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.44%.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.46% yearly.
OVV is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.54% yearly.
EPS Next Y-16.7%
EPS Next 2Y-3.79%
EPS Next 3Y6.95%
EPS Next 5Y8.46%
Revenue Next Year-4.53%
Revenue Next 2Y-3.49%
Revenue Next 3Y-1.54%
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
With a Price/Earnings ratio of 6.91, the valuation of OVV can be described as very cheap.
86.54% 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 26.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.18, the valuation of OVV can be described as very cheap.
Based on the Price/Forward Earnings ratio, OVV is valued a bit cheaper than 75.48% of the companies in the same industry.
OVV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 33.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.91 | ||
| Fwd PE | 7.18 |
4.2 Price Multiples
88.94% of the companies in the same industry are more expensive than OVV, based on the Enterprise Value to EBITDA ratio.
OVV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. OVV is cheaper than 90.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.89 | ||
| EV/EBITDA | 3.47 |
4.3 Compensation for Growth
The excellent profitability rating of OVV 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 3.08%, OVV has a reasonable but not impressive dividend return.
OVV's Dividend Yield is a higher than the industry average which is at 5.87.
Compared to an average S&P500 Dividend Yield of 2.39, OVV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
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.
As OVV did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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 of OVV is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP52.27%
EPS Next 2Y-3.79%
EPS Next 3Y6.95%
TSX:OVV (8/11/2025, 7:00:00 PM)
53.71
-1.13 (-2.06%)
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 Cap13.81B
Analysts80.71
Price Target77.66 (44.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
Yearly Dividend1.63
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)6.43%
PT rev (3m)0.18%
EPS NQ rev (1m)-1.88%
EPS NQ rev (3m)-12.8%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.76%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-8.52%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)-2.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.91 | ||
| Fwd PE | 7.18 | ||
| P/S | 1.09 | ||
| P/FCF | 5.89 | ||
| P/OCF | 2.55 | ||
| P/B | 0.97 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 3.47 |
EPS(TTM)7.77
EY14.47%
EPS(NY)7.48
Fwd EY13.92%
FCF(TTM)9.12
FCFY16.97%
OCF(TTM)21.06
OCFY39.22%
SpS49.37
BVpS55.65
TBVpS41.82
PEG (NY)N/A
PEG (5Y)0.57
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 | 1.48 |
F-Score6
WACC9.36%
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)-16.44%
EPS 3Y5.72%
EPS 5Y12.1%
EPS Q2Q%-17.07%
EPS Next Y-16.7%
EPS Next 2Y-3.79%
EPS Next 3Y6.95%
EPS Next 5Y8.46%
Revenue 1Y (TTM)-11.94%
Revenue growth 3Y1.87%
Revenue growth 5Y6.35%
Sales Q2Q%1.31%
Revenue Next Year-4.53%
Revenue Next 2Y-3.49%
Revenue Next 3Y-1.54%
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 5Y28.96%
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%