OVINTIV INC (OVV.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:OVV - US69047Q1022 - Common Stock
58.5 CAD
-0.51 (-0.86%)
OVV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 218 industry peers in the Oil, Gas & Consumable Fuels industry. OVV has an excellent profitability rating, but 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.
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 (1.22%) is comparable to the rest of the industry.
With a Return On Equity value of 2.31%, OVV perfoms like the industry average, outperforming 54.59% of the companies in the same industry.
OVV has a Return On Invested Capital of 10.24%. This is amongst the best in the industry. OVV outperforms 93.58% of its industry peers.
OVV had an Average Return On Invested Capital over the past 3 years of 16.94%. This is significantly above the industry average of 6.53%.
The last Return On Invested Capital (10.24%) 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 | 1.22% | ||
| ROE | 2.31% | ||
| ROIC | 10.24% |
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 2.64% is in line compared to the rest of the industry. OVV outperforms 55.05% of its industry peers.
OVV's Profit Margin has improved in the last couple of years.
OVV has a Operating Margin of 23.04%. This is in the better half of the industry: OVV outperforms 77.06% of its industry peers.
OVV's Operating Margin has improved in the last couple of years.
The Gross Margin of OVV (70.19%) is better than 88.99% of its industry peers.
OVV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.04% | ||
| PM (TTM) | 2.64% | ||
| GM | 70.19% |
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 1.53, we must say that OVV is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of OVV (1.53) is better than 66.06% of its industry peers.
The Debt to FCF ratio of OVV is 3.51, which is a good value as it means it would take OVV, 3.51 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.51, OVV belongs to the top of the industry, outperforming 86.24% of the companies in the same industry.
A Debt/Equity ratio of 0.43 indicates that OVV is not too dependend on debt financing.
The Debt to Equity ratio of OVV (0.43) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.51 | ||
| Altman-Z | 1.53 |
ROIC/WACC1.16
WACC8.79%
2.3 Liquidity
A Current Ratio of 0.45 indicates that OVV may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.45, OVV is doing worse than 76.61% of the companies in the same industry.
A Quick Ratio of 0.45 indicates that OVV may have some problems paying its short term obligations.
The Quick ratio of OVV (0.45) is worse than 68.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
OVV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.74%.
The Earnings Per Share has been growing by 12.10% on average over the past years. This is quite good.
OVV shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.66%.
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)-29.74%
EPS 3Y5.72%
EPS 5Y12.1%
EPS Q2Q%-44.32%
Revenue 1Y (TTM)-11.66%
Revenue growth 3Y1.87%
Revenue growth 5Y6.35%
Sales Q2Q%-11.1%
3.2 Future
The Earnings Per Share is expected to decrease by -1.03% on average over the next years.
The Revenue is expected to grow by 1.76% on average over the next years.
EPS Next Y-25.04%
EPS Next 2Y-4.75%
EPS Next 3Y6.31%
EPS Next 5Y-1.03%
Revenue Next Year-2.4%
Revenue Next 2Y-0.4%
Revenue Next 3Y1.76%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 8.71 indicates a reasonable valuation of OVV.
Based on the Price/Earnings ratio, OVV is valued a bit cheaper than 78.90% of the companies in the same industry.
When comparing the Price/Earnings ratio of OVV to the average of the S&P500 Index (26.49), we can say OVV is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.90, 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 78.44% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.69. OVV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.71 | ||
| Fwd PE | 7.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OVV is valued cheaply inside the industry as 89.91% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OVV indicates a rather cheap valuation: OVV is cheaper than 89.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.16 | ||
| EV/EBITDA | 3.72 |
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)0.72
EPS Next 2Y-4.75%
EPS Next 3Y6.31%
5. Dividend
5.1 Amount
OVV has a Yearly Dividend Yield of 2.84%. 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 6.83.
Compared to an average S&P500 Dividend Yield of 2.31, OVV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
5.2 History
The dividend of OVV is nicely growing with an annual growth rate of 21.30%!
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 131.36% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of OVV has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP131.36%
EPS Next 2Y-4.75%
EPS Next 3Y6.31%
TSX:OVV (12/5/2025, 7:00:00 PM)
58.5
-0.51 (-0.86%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners91.48%
Inst Owner ChangeN/A
Ins Owners0.5%
Ins Owner ChangeN/A
Market Cap14.82B
Revenue(TTM)8.95B
Net Income(TTM)236.00M
Analysts81.43
Price Target76.95 (31.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
Yearly Dividend1.66
Dividend Growth(5Y)21.3%
DP131.36%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.01%
Min EPS beat(2)5.35%
Max EPS beat(2)10.67%
EPS beat(4)4
Avg EPS beat(4)16.27%
Min EPS beat(4)5.35%
Max EPS beat(4)33.89%
EPS beat(8)7
Avg EPS beat(8)17.75%
EPS beat(12)8
Avg EPS beat(12)8.22%
EPS beat(16)8
Avg EPS beat(16)1.3%
Revenue beat(2)2
Avg Revenue beat(2)11.04%
Min Revenue beat(2)3.15%
Max Revenue beat(2)18.93%
Revenue beat(4)4
Avg Revenue beat(4)7.87%
Min Revenue beat(4)1.3%
Max Revenue beat(4)18.93%
Revenue beat(8)6
Avg Revenue beat(8)5.43%
Revenue beat(12)9
Avg Revenue beat(12)7%
Revenue beat(16)12
Avg Revenue beat(16)13.45%
PT rev (1m)2.39%
PT rev (3m)-0.98%
EPS NQ rev (1m)-5.94%
EPS NQ rev (3m)-25.24%
EPS NY rev (1m)-2.84%
EPS NY rev (3m)-7.5%
Revenue NQ rev (1m)0.59%
Revenue NQ rev (3m)-4.31%
Revenue NY rev (1m)0.98%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.71 | ||
| Fwd PE | 7.9 | ||
| P/S | 1.19 | ||
| P/FCF | 7.16 | ||
| P/OCF | 2.86 | ||
| P/B | 1.04 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 3.72 |
EPS(TTM)6.72
EY11.49%
EPS(NY)7.41
Fwd EY12.67%
FCF(TTM)8.17
FCFY13.96%
OCF(TTM)20.46
OCFY34.98%
SpS49.25
BVpS56.32
TBVpS42.2
PEG (NY)N/A
PEG (5Y)0.72
Graham Number92.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.22% | ||
| ROE | 2.31% | ||
| ROCE | 12.31% | ||
| ROIC | 10.24% | ||
| ROICexc | 10.25% | ||
| ROICexgc | 12.11% | ||
| OM | 23.04% | ||
| PM (TTM) | 2.64% | ||
| GM | 70.19% | ||
| FCFM | 16.58% |
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 Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.51 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 101.96% | ||
| Cap/Sales | 24.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.42% | ||
| Profit Quality | 628.81% | ||
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 1.53 |
F-Score6
WACC8.79%
ROIC/WACC1.16
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)-29.74%
EPS 3Y5.72%
EPS 5Y12.1%
EPS Q2Q%-44.32%
EPS Next Y-25.04%
EPS Next 2Y-4.75%
EPS Next 3Y6.31%
EPS Next 5Y-1.03%
Revenue 1Y (TTM)-11.66%
Revenue growth 3Y1.87%
Revenue growth 5Y6.35%
Sales Q2Q%-11.1%
Revenue Next Year-2.4%
Revenue Next 2Y-0.4%
Revenue Next 3Y1.76%
Revenue Next 5YN/A
EBIT growth 1Y-25.45%
EBIT growth 3Y10.55%
EBIT growth 5Y22.99%
EBIT Next Year94.42%
EBIT Next 3Y32.79%
EBIT Next 5Y12.76%
FCF growth 1Y19.87%
FCF growth 3Y-4.14%
FCF growth 5Y36.89%
OCF growth 1Y1.03%
OCF growth 3Y5.95%
OCF growth 5Y4.96%
OVINTIV INC / OVV.CA FAQ
What is the ChartMill fundamental rating of OVINTIV INC (OVV.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to OVV.CA.
What is the valuation status of OVINTIV INC (OVV.CA) stock?
ChartMill assigns a valuation rating of 7 / 10 to OVINTIV INC (OVV.CA). This can be considered as Undervalued.
What is the profitability of OVV stock?
OVINTIV INC (OVV.CA) has a profitability rating of 7 / 10.
What is the earnings growth outlook for OVINTIV INC?
The Earnings per Share (EPS) of OVINTIV INC (OVV.CA) is expected to decline by -25.04% in the next year.
Can you provide the dividend sustainability for OVV stock?
The dividend rating of OVINTIV INC (OVV.CA) is 5 / 10 and the dividend payout ratio is 131.36%.