OVINTIV INC (OVV.CA) Stock Fundamental Analysis
TSX:OVV - US69047Q1022 - Common Stock
56.94 CAD
-0.07 (-0.12%)
Overall OVV gets a fundamental rating of 6 out of 10. We evaluated OVV against 215 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 has a bad growth rate and is valued cheaply. This makes OVV very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year OVV was profitable.
OVV had a positive operating cash flow in the past year.
OVV had positive earnings in 4 of the past 5 years.
In the past 5 years OVV always reported a positive cash flow from operatings.
1.2 Ratios
OVV has a better Return On Assets (3.02%) than 68.37% of its industry peers.
OVV has a Return On Equity (5.73%) which is comparable to the rest of the industry.
OVV has a better Return On Invested Capital (10.72%) than 93.02% 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 6.99%.
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's Profit Margin of 6.46% is in line compared to the rest of the industry. OVV outperforms 56.74% of its industry peers.
In the last couple of years the Profit Margin of OVV has grown nicely.
OVV's Operating Margin of 23.61% is fine compared to the rest of the industry. OVV outperforms 74.88% of its industry peers.
In the last couple of years the Operating Margin of OVV has grown nicely.
The Gross Margin of OVV (69.47%) is better than 88.84% 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.
Compared to 1 year ago, OVV has less shares outstanding
OVV has about the same amout of shares outstanding than it did 5 years ago.
OVV has a better debt/assets ratio than last year.
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.
OVV's Altman-Z score of 1.54 is fine compared to the rest of the industry. OVV outperforms 64.65% 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.
The Debt to FCF ratio of OVV (3.14) is better than 84.19% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that OVV is not too dependend on debt financing.
OVV has a Debt to Equity ratio of 0.42. This is comparable to the rest of the industry: OVV outperforms 51.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 1.54 |
ROIC/WACC1.16
WACC9.26%
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.
OVV has a Current ratio of 0.43. This is in the lower half of the industry: OVV underperforms 76.28% of its industry peers.
A Quick Ratio of 0.43 indicates that OVV may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.43, OVV is doing worse than 75.81% of the companies in the same industry.
| 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.
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
OVV is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.03% yearly.
The Revenue is expected to decrease by -0.04% on average over the next years.
EPS Next Y-18.96%
EPS Next 2Y-0.11%
EPS Next 3Y9.88%
EPS Next 5Y-1.03%
Revenue Next Year-2.93%
Revenue Next 2Y-2.4%
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
The Price/Earnings ratio is 7.31, which indicates a rather cheap valuation of OVV.
Based on the Price/Earnings ratio, OVV is valued a bit cheaper than the industry average as 79.53% 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 27.06.
A Price/Forward Earnings ratio of 7.05 indicates a rather cheap valuation of OVV.
Based on the Price/Forward Earnings ratio, OVV is valued a bit cheaper than 78.60% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.69, OVV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.31 | ||
| Fwd PE | 7.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OVV is valued cheaply inside the industry as 89.77% of the companies are valued more expensively.
OVV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. OVV is cheaper than 89.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.23 | ||
| EV/EBITDA | 3.68 |
4.3 Compensation for Growth
OVV has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.6
EPS Next 2Y-0.11%
EPS Next 3Y9.88%
5. Dividend
5.1 Amount
OVV has a Yearly Dividend Yield of 2.86%.
Compared to an average industry Dividend Yield of 6.00, OVV pays a bit more dividend than its industry peers.
OVV's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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 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
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-0.11%
EPS Next 3Y9.88%
TSX:OVV (9/5/2025, 7:00:00 PM)
56.94
-0.07 (-0.12%)
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 Cap14.64B
Analysts80.71
Price Target77.72 (36.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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)4.7%
PT rev (3m)3.09%
EPS NQ rev (1m)-4.88%
EPS NQ rev (3m)-17.46%
EPS NY rev (1m)-2.72%
EPS NY rev (3m)-0.89%
Revenue NQ rev (1m)1.45%
Revenue NQ rev (3m)-7.33%
Revenue NY rev (1m)1.68%
Revenue NY rev (3m)2.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.31 | ||
| Fwd PE | 7.05 | ||
| P/S | 1.15 | ||
| P/FCF | 6.23 | ||
| P/OCF | 2.7 | ||
| P/B | 1.02 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 3.68 |
EPS(TTM)7.79
EY13.68%
EPS(NY)8.08
Fwd EY14.19%
FCF(TTM)9.14
FCFY16.05%
OCF(TTM)21.12
OCFY37.09%
SpS49.5
BVpS55.79
TBVpS41.92
PEG (NY)N/A
PEG (5Y)0.6
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
WACC9.26%
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)-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-2.93%
Revenue Next 2Y-2.4%
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%