OVINTIV INC (OVV.CA) Stock Fundamental Analysis
TSX:OVV - Toronto Stock Exchange - US69047Q1022 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to OVV. OVV was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. While OVV has a great profitability rating, there are some minor concerns on its financial health. OVV is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year OVV was profitable.
OVV had a positive operating cash flow in the past year.
Of the past 5 years OVV 4 years were profitable.
In the past 5 years OVV always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.20%, OVV is in the better half of the industry, outperforming 68.12% of the companies in the same industry.
The Return On Equity of OVV (6.23%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 11.13%, OVV belongs to the top of the industry, outperforming 91.79% 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 7.44%.
The 3 year average ROIC (16.89%) for OVV is well above the current ROIC(11.13%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 6.23% | ||
| ROIC | 11.13% |
ROA(3y)13.48%
ROA(5y)1.67%
ROE(3y)26.1%
ROE(5y)-10.54%
ROIC(3y)16.89%
ROIC(5y)12.77%
1.3 Margins
With a Profit Margin value of 6.84%, OVV perfoms like the industry average, outperforming 59.42% of the companies in the same industry.
In the last couple of years the Profit Margin of OVV has grown nicely.
With a decent Operating Margin value of 23.98%, OVV is doing good in the industry, outperforming 73.43% of the companies in the same industry.
OVV's Operating Margin has improved in the last couple of years.
OVV has a better Gross Margin (70.16%) than 88.89% 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 | 23.98% | ||
| PM (TTM) | 6.84% | ||
| GM | 70.16% |
OM growth 3Y8.05%
OM growth 5Y15.34%
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 just above the Cost of Capital (WACC), which means it is creating some 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 1.47, we must say that OVV is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.47, OVV is doing good in the industry, outperforming 64.73% of the companies in the same industry.
OVV has a debt to FCF ratio of 3.45. This is a good value and a sign of high solvency as OVV would need 3.45 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.45, OVV belongs to the top of the industry, outperforming 81.16% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that OVV is not too dependend on debt financing.
OVV has a Debt to Equity ratio (0.44) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 1.47 |
ROIC/WACC1.16
WACC9.63%
2.3 Liquidity
A Current Ratio of 0.43 indicates that OVV may have some problems paying its short term obligations.
OVV has a Current ratio of 0.43. This is in the lower half of the industry: OVV underperforms 78.74% 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.
The Quick ratio of OVV (0.43) is worse than 76.81% 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 by -9.30% 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 -14.11% in the past year. This is quite bad
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)-9.3%
EPS 3Y5.72%
EPS 5Y12.1%
EPS Q2Q%-0.7%
Revenue 1Y (TTM)-14.11%
Revenue growth 3Y1.87%
Revenue growth 5Y6.35%
Sales Q2Q%1.06%
3.2 Future
The Earnings Per Share is expected to grow by 8.46% on average over the next years. This is quite good.
Based on estimates for the next years, OVV will show a decrease in Revenue. The Revenue will decrease by -1.69% on average per year.
EPS Next Y-16.7%
EPS Next 2Y-3.79%
EPS Next 3Y6.95%
EPS Next 5Y8.46%
Revenue Next Year-5.05%
Revenue Next 2Y-3.24%
Revenue Next 3Y-1.69%
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
OVV is valuated cheaply with a Price/Earnings ratio of 6.63.
Based on the Price/Earnings ratio, OVV is valued cheaply inside the industry as 86.47% 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 27.46.
The Price/Forward Earnings ratio is 7.16, which indicates a rather cheap valuation of OVV.
Based on the Price/Forward Earnings ratio, OVV is valued a bit cheaper than the industry average as 73.43% of the companies are valued more expensively.
OVV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.63 | ||
| Fwd PE | 7.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OVV is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, OVV is valued cheaper than 89.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.28 | ||
| EV/EBITDA | 3.57 |
4.3 Compensation for Growth
The excellent profitability rating of OVV may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y-3.79%
EPS Next 3Y6.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.00%, OVV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.83, 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
5.2 History
On average, the dividend of OVV grows each year by 21.30%, which is quite nice.
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
50.00% of the earnings are spent on dividend by OVV. This is a bit on the high side, but may be sustainable.
OVV's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50%
EPS Next 2Y-3.79%
EPS Next 3Y6.95%
TSX:OVV (7/21/2025, 7:00:00 PM)
53.25
-1.72 (-3.13%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners90.63%
Inst Owner ChangeN/A
Ins Owners0.49%
Ins Owner ChangeN/A
Market Cap13.84B
Analysts80.74
Price Target74.23 (39.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
Yearly Dividend1.63
Dividend Growth(5Y)21.3%
DP50%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.52%
Min EPS beat(2)15.15%
Max EPS beat(2)33.89%
EPS beat(4)3
Avg EPS beat(4)25.73%
Min EPS beat(4)-6.89%
Max EPS beat(4)60.77%
EPS beat(8)6
Avg EPS beat(8)17.12%
EPS beat(12)6
Avg EPS beat(12)3.31%
EPS beat(16)6
Avg EPS beat(16)-0.36%
Revenue beat(2)2
Avg Revenue beat(2)4.7%
Min Revenue beat(2)1.3%
Max Revenue beat(2)8.09%
Revenue beat(4)3
Avg Revenue beat(4)2.97%
Min Revenue beat(4)-7.18%
Max Revenue beat(4)9.67%
Revenue beat(8)6
Avg Revenue beat(8)5.04%
Revenue beat(12)9
Avg Revenue beat(12)11.64%
Revenue beat(16)10
Avg Revenue beat(16)11.34%
PT rev (1m)1.55%
PT rev (3m)-13.97%
EPS NQ rev (1m)-6.04%
EPS NQ rev (3m)-25.27%
EPS NY rev (1m)-1.36%
EPS NY rev (3m)-2.76%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)-10.68%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-3.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.63 | ||
| Fwd PE | 7.16 | ||
| P/S | 1.1 | ||
| P/FCF | 6.28 | ||
| P/OCF | 2.56 | ||
| P/B | 1 | ||
| P/tB | 1.34 | ||
| EV/EBITDA | 3.57 |
EPS(TTM)8.03
EY15.08%
EPS(NY)7.44
Fwd EY13.98%
FCF(TTM)8.48
FCFY15.92%
OCF(TTM)20.78
OCFY39.01%
SpS48.45
BVpS53.22
TBVpS39.78
PEG (NY)N/A
PEG (5Y)0.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 6.23% | ||
| ROCE | 13.38% | ||
| ROIC | 11.13% | ||
| ROICexc | 11.13% | ||
| ROICexgc | 13.17% | ||
| OM | 23.98% | ||
| PM (TTM) | 6.84% | ||
| GM | 70.16% | ||
| FCFM | 17.5% |
ROA(3y)13.48%
ROA(5y)1.67%
ROE(3y)26.1%
ROE(5y)-10.54%
ROIC(3y)16.89%
ROIC(5y)12.77%
ROICexc(3y)16.91%
ROICexc(5y)12.82%
ROICexgc(3y)20.7%
ROICexgc(5y)15.91%
ROCE(3y)20.31%
ROCE(5y)15.35%
ROICexcg growth 3Y-6.83%
ROICexcg growth 5Y26.41%
ROICexc growth 3Y-3.59%
ROICexc growth 5Y25.95%
OM growth 3Y8.05%
OM growth 5Y15.34%
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 | 0.44 | ||
| Debt/FCF | 3.45 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 102.64% | ||
| Cap/Sales | 25.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.03% | ||
| Profit Quality | 255.73% | ||
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 1.47 |
F-Score6
WACC9.63%
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)-9.3%
EPS 3Y5.72%
EPS 5Y12.1%
EPS Q2Q%-0.7%
EPS Next Y-16.7%
EPS Next 2Y-3.79%
EPS Next 3Y6.95%
EPS Next 5Y8.46%
Revenue 1Y (TTM)-14.11%
Revenue growth 3Y1.87%
Revenue growth 5Y6.35%
Sales Q2Q%1.06%
Revenue Next Year-5.05%
Revenue Next 2Y-3.24%
Revenue Next 3Y-1.69%
Revenue Next 5YN/A
EBIT growth 1Y-20.46%
EBIT growth 3Y10.06%
EBIT growth 5Y22.67%
EBIT Next Year99.58%
EBIT Next 3Y29.31%
EBIT Next 5Y28.96%
FCF growth 1Y-28.91%
FCF growth 3Y-4.14%
FCF growth 5Y36.89%
OCF growth 1Y-7.39%
OCF growth 3Y5.95%
OCF growth 5Y4.96%