OVINTIV INC (OVV.CA) Stock Fundamental Analysis
Canada - TSX:OVV - US69047Q1022 - Common Stock
53.13 CAD
+1.99 (+3.89%)
We assign a fundamental rating of 6 out of 10 to OVV. OVV was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. OVV scores excellent on profitability, but there are some minor concerns on its financial health. OVV has a bad growth rate and is valued cheaply. This makes OVV very considerable 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.
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
OVV's Return On Assets of 3.02% is fine compared to the rest of the industry. OVV outperforms 66.67% of its industry peers.
OVV's Return On Equity of 5.73% is in line compared to the rest of the industry. OVV outperforms 56.52% of its industry peers.
The Return On Invested Capital of OVV (10.72%) is better than 93.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OVV is significantly above the industry average of 6.94%.
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 55.07% of its industry peers.
In the last couple of years the Profit Margin of OVV has grown nicely.
OVV has a Operating Margin of 23.61%. This is in the better half of the industry: OVV outperforms 74.40% of its industry peers.
In the last couple of years the Operating Margin of OVV has grown nicely.
OVV's Gross Margin of 69.47% is amongst the best of the industry. OVV outperforms 88.41% 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 | 23.61% | ||
| 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.
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 1.44, we must say that OVV is in the distress zone and has some risk of bankruptcy.
OVV has a Altman-Z score of 1.44. This is in the better half of the industry: OVV outperforms 63.77% of its industry peers.
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.
OVV has a better Debt to FCF ratio (3.14) than 84.54% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that OVV is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.42, OVV perfoms like the industry average, outperforming 49.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 1.44 |
ROIC/WACC1.25
WACC8.6%
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 77.78% 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.
Looking at the Quick ratio, with a value of 0.43, OVV is doing worse than 77.29% of the companies in the same industry.
| 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%.
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 -11.94% 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)-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.
Based on estimates for the next years, OVV will show a decrease in Revenue. The Revenue will decrease by -0.12% on average per year.
EPS Next Y-19.53%
EPS Next 2Y-0.36%
EPS Next 3Y8.35%
EPS Next 5Y-1.03%
Revenue Next Year-2.79%
Revenue Next 2Y-2.54%
Revenue Next 3Y-0.12%
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 6.72, the valuation of OVV can be described as very cheap.
Based on the Price/Earnings ratio, OVV is valued cheaper than 88.89% of the companies in the same industry.
OVV is valuated cheaply when we compare the Price/Earnings ratio to 27.67, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.51, the valuation of OVV can be described as very cheap.
86.96% of the companies in the same industry are more expensive than OVV, based on the Price/Forward Earnings ratio.
OVV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.72 | ||
| Fwd PE | 6.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OVV is valued cheaper than 91.30% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OVV indicates a rather cheap valuation: OVV is cheaper than 93.72% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.72 | ||
| EV/EBITDA | 3.32 |
4.3 Compensation for Growth
OVV has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.56
EPS Next 2Y-0.36%
EPS Next 3Y8.35%
5. Dividend
5.1 Amount
OVV has a Yearly Dividend Yield of 3.29%.
OVV's Dividend Yield is a higher than the industry average which is at 5.56.
Compared to an average S&P500 Dividend Yield of 2.35, OVV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
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.
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
52.27% of the earnings are spent on dividend by OVV. 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-0.36%
EPS Next 3Y8.35%
TSX:OVV (10/23/2025, 7:00:00 PM)
53.13
+1.99 (+3.89%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners89.12%
Inst Owner ChangeN/A
Ins Owners0.5%
Ins Owner ChangeN/A
Market Cap13.63B
Revenue(TTM)9.21B
Net Income(TTM)595.00M
Analysts80
Price Target77.48 (45.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
Yearly Dividend1.67
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)0.11%
PT rev (3m)6.18%
EPS NQ rev (1m)-3.33%
EPS NQ rev (3m)-11.01%
EPS NY rev (1m)-0.7%
EPS NY rev (3m)-3.4%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)1.3%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)2.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.72 | ||
| Fwd PE | 6.51 | ||
| P/S | 1.06 | ||
| P/FCF | 5.72 | ||
| P/OCF | 2.47 | ||
| P/B | 0.94 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 3.32 |
EPS(TTM)7.91
EY14.89%
EPS(NY)8.16
Fwd EY15.36%
FCF(TTM)9.3
FCFY17.5%
OCF(TTM)21.48
OCFY40.43%
SpS50.35
BVpS56.74
TBVpS42.64
PEG (NY)N/A
PEG (5Y)0.56
Graham Number100.49
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%
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 Turnover0.47
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 | 1.44 |
F-Score6
WACC8.6%
ROIC/WACC1.25
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-19.53%
EPS Next 2Y-0.36%
EPS Next 3Y8.35%
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-2.79%
Revenue Next 2Y-2.54%
Revenue Next 3Y-0.12%
Revenue Next 5YN/A
EBIT growth 1Y-19.66%
EBIT growth 3Y10.55%
EBIT growth 5Y22.99%
EBIT Next Year99.63%
EBIT Next 3Y29.68%
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%