OVINTIV INC (OVV) Stock Fundamental Analysis
NYSE:OVV - US69047Q1022 - Common Stock
40.93 USD
+1.69 (+4.31%)
40.93 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to OVV. OVV was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. OVV has an average financial health and profitability rating. 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.
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
With a Return On Assets value of 3.02%, OVV perfoms like the industry average, outperforming 49.28% of the companies in the same industry.
The Return On Equity of OVV (5.73%) is comparable to the rest of the industry.
With an excellent Return On Invested Capital value of 10.72%, OVV belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
OVV had an Average Return On Invested Capital over the past 3 years of 16.94%. This is significantly below the industry average of 23.53%.
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
With a Profit Margin value of 6.46%, OVV perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
In the last couple of years the Profit Margin of OVV has grown nicely.
OVV's Operating Margin of 23.61% is in line compared to the rest of the industry. OVV outperforms 55.98% of its industry peers.
In the last couple of years the Operating Margin of OVV has grown nicely.
With a decent Gross Margin value of 69.47%, OVV is doing good in the industry, outperforming 78.95% of the companies in the same industry.
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
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.
The number of shares outstanding for OVV remains at a similar level compared to 5 years ago.
Compared to 1 year ago, OVV has an improved debt to assets ratio.
2.2 Solvency
OVV has an Altman-Z score of 1.48. This is a bad value and indicates that OVV is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.48, OVV is in line with its industry, outperforming 55.98% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 3.14, OVV is in the better half of the industry, outperforming 77.03% of the companies in the same industry.
OVV has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
OVV has a Debt to Equity ratio (0.42) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 1.48 |
ROIC/WACC1.16
WACC9.27%
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 amonst the worse of the industry: OVV underperforms 89.95% 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 88.52% 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 strongly by -16.44% in the last year.
The Earnings Per Share has been growing by 12.10% on average over the past years. This is quite good.
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.
Based on estimates for the next years, OVV will show a decrease in Revenue. The Revenue will decrease by -1.54% on average per year.
EPS Next Y-16.7%
EPS Next 2Y-3.79%
EPS Next 3Y6.95%
EPS Next 5Y-1.03%
Revenue Next Year-4.53%
Revenue Next 2Y-3.49%
Revenue Next 3Y-1.54%
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 7.26.
Compared to the rest of the industry, the Price/Earnings ratio of OVV indicates a rather cheap valuation: OVV is cheaper than 84.69% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.24, OVV is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.55, the valuation of OVV can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OVV indicates a rather cheap valuation: OVV is cheaper than 81.82% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of OVV to the average of the S&P500 Index (35.82), we can say OVV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.26 | ||
| Fwd PE | 7.55 |
4.2 Price Multiples
OVV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OVV is cheaper than 83.73% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OVV is valued cheaply inside the industry as 89.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.19 | ||
| EV/EBITDA | 3.49 |
4.3 Compensation for Growth
The decent profitability rating of OVV may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.6
EPS Next 2Y-3.79%
EPS Next 3Y6.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.01%, OVV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.30, OVV has a dividend in line with its industry peers.
OVV's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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 last 3 years.
Dividend Growth(5Y)21.3%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
OVV pays out 52.27% of its income as dividend. This is a bit on the high side, but may be sustainable.
OVV's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP52.27%
EPS Next 2Y-3.79%
EPS Next 3Y6.95%
40.93
+1.69 (+4.31%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners91.36%
Inst Owner Change-4.1%
Ins Owners0.5%
Ins Owner Change9.24%
Market Cap10.52B
Analysts80.71
Price Target56.2 (37.31%)
Short Float %2.97%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
Yearly Dividend1.19
Dividend Growth(5Y)21.3%
DP52.27%
Div Incr Years4
Div Non Decr Years4
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)5.48%
PT rev (3m)2.95%
EPS NQ rev (1m)-4.11%
EPS NQ rev (3m)-14.78%
EPS NY rev (1m)0%
EPS NY rev (3m)1.88%
Revenue NQ rev (1m)-0.9%
Revenue NQ rev (3m)-9.47%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.26 | ||
| Fwd PE | 7.55 | ||
| P/S | 1.14 | ||
| P/FCF | 6.19 | ||
| P/OCF | 2.68 | ||
| P/B | 1.01 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 3.49 |
EPS(TTM)5.64
EY13.78%
EPS(NY)5.42
Fwd EY13.25%
FCF(TTM)6.61
FCFY16.16%
OCF(TTM)15.28
OCFY37.34%
SpS35.82
BVpS40.37
TBVpS30.34
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 | 1.48 |
F-Score6
WACC9.27%
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-16.7%
EPS Next 2Y-3.79%
EPS Next 3Y6.95%
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-4.53%
Revenue Next 2Y-3.49%
Revenue Next 3Y-1.54%
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%