OVINTIV INC (OVV)

US69047Q1022 - Common Stock

51.98  +0.62 (+1.21%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to OVV. OVV was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. OVV has a medium profitability rating, but doesn't score so well on its financial health evaluation. OVV has a correct valuation and a medium growth rate.



5

1. Profitability

1.1 Basic Checks

In the past year OVV was profitable.
In the past year OVV had a positive cash flow from operations.
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 better Return On Assets (10.43%) than 62.91% of its industry peers.
Looking at the Return On Equity, with a value of 20.11%, OVV is in the better half of the industry, outperforming 60.09% of the companies in the same industry.
The Return On Invested Capital of OVV (14.30%) is better than 73.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OVV is significantly below the industry average of 48.71%.
Industry RankSector Rank
ROA 10.43%
ROE 20.11%
ROIC 14.3%
ROA(3y)14.89%
ROA(5y)0.72%
ROE(3y)31.77%
ROE(5y)-12.25%
ROIC(3y)17.06%
ROIC(5y)11.26%

1.3 Margins

Looking at the Profit Margin, with a value of 19.16%, OVV is in line with its industry, outperforming 54.46% of the companies in the same industry.
In the last couple of years the Profit Margin of OVV has remained more or less at the same level.
OVV has a Operating Margin (27.16%) which is comparable to the rest of the industry.
OVV's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 63.10%, OVV is doing good in the industry, outperforming 65.26% of the companies in the same industry.
OVV's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 27.16%
PM (TTM) 19.16%
GM 63.1%
OM growth 3Y80.37%
OM growth 5Y-1.6%
PM growth 3YN/A
PM growth 5Y1.26%
GM growth 3Y-1.44%
GM growth 5Y-2.14%

2

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 increased compared to 1 year ago.
OVV has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, OVV has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 1.88 indicates that OVV is not a great score, but indicates only limited risk for bankruptcy at the moment.
OVV has a Altman-Z score (1.88) which is in line with its industry peers.
The Debt to FCF ratio of OVV is 4.05, which is a neutral value as it means it would take OVV, 4.05 years of fcf income to pay off all of its debts.
OVV's Debt to FCF ratio of 4.05 is in line compared to the rest of the industry. OVV outperforms 59.62% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that OVV is somewhat dependend on debt financing.
OVV has a Debt to Equity ratio of 0.53. This is comparable to the rest of the industry: OVV outperforms 47.42% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 4.05
Altman-Z 1.88
ROIC/WACC1.78
WACC8.02%

2.3 Liquidity

OVV has a Current Ratio of 0.60. 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 0.60. This is amonst the worse of the industry: OVV underperforms 86.85% of its industry peers.
OVV has a Quick Ratio of 0.60. 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 Quick ratio of 0.60. This is amonst the worse of the industry: OVV underperforms 83.57% of its industry peers.
Industry RankSector Rank
Current Ratio 0.6
Quick Ratio 0.6

4

3. Growth

3.1 Past

The earnings per share for OVV have decreased by -1.44% 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 9.70% on average per year.
The Revenue for OVV has decreased by -12.68% in the past year. This is quite bad
The Revenue has been growing by 12.88% on average over the past years. This is quite good.
EPS 1Y (TTM)-1.44%
EPS 3Y171.84%
EPS 5Y9.7%
EPS growth Q2Q158.24%
Revenue 1Y (TTM)-12.68%
Revenue growth 3Y21.37%
Revenue growth 5Y12.88%
Revenue growth Q2Q-1.43%

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 10.63% yearly.
The Revenue is expected to grow by 2.16% on average over the next years.
EPS Next Y-7.86%
EPS Next 2Y5.02%
EPS Next 3Y9.73%
EPS Next 5Y10.63%
Revenue Next Year-1.54%
Revenue Next 2Y1.51%
Revenue Next 3Y2.89%
Revenue Next 5Y2.16%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same 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.

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 7.61, the valuation of OVV can be described as very cheap.
Based on the Price/Earnings ratio, OVV is valued a bit cheaper than the industry average as 71.83% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.42, OVV is valued rather cheaply.
The Price/Forward Earnings ratio is 8.26, which indicates a very decent valuation of OVV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OVV indicates a somewhat cheap valuation: OVV is cheaper than 75.12% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.74, OVV is valued rather cheaply.
Industry RankSector Rank
PE 7.61
Fwd PE 8.26

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, OVV is valued a bit cheaper than the industry average as 73.71% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, OVV is valued a bit cheaper than 65.73% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.92
EV/EBITDA 4.12

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)0.78
EPS Next 2Y5.02%
EPS Next 3Y9.73%

5

5. Dividend

5.1 Amount

OVV has a Yearly Dividend Yield of 2.33%.
OVV's Dividend Yield is comparable with the industry average which is at 5.86.
OVV's Dividend Yield is comparable with the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 2.33%

5.2 History

On average, the dividend of OVV grows each year by 32.53%, 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)32.53%
Div Incr Years3
Div Non Decr Years7

5.3 Sustainability

OVV pays out 14.72% of its income as dividend. This is a sustainable payout ratio.
OVV's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP14.72%
EPS Next 2Y5.02%
EPS Next 3Y9.73%

OVINTIV INC

NYSE:OVV (3/28/2024, 9:36:04 AM)

51.98

+0.62 (+1.21%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.12B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.33%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 7.61
Fwd PE 8.26
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.78
Profitability
Industry RankSector Rank
ROA 10.43%
ROE 20.11%
ROCE
ROIC
ROICexc
ROICexgc
OM 27.16%
PM (TTM) 19.16%
GM 63.1%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.54
Health
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.6
Quick Ratio 0.6
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-1.44%
EPS 3Y171.84%
EPS 5Y
EPS growth Q2Q
EPS Next Y-7.86%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-12.68%
Revenue growth 3Y21.37%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y