OVINTIV INC (OVV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OVV - US69047Q1022 - Common Stock
38.05 USD
+0.03 (+0.08%)
37.82 USD
-0.23 (-0.6%)
Taking everything into account, OVV scores 5 out of 10 in our fundamental rating. OVV was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of OVV get a neutral evaluation. Nothing too spectacular is happening here. OVV is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
OVV had positive earnings in the past year.
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's Return On Assets of 1.22% is on the low side compared to the rest of the industry. OVV is outperformed by 62.38% of its industry peers.
OVV's Return On Equity of 2.31% is on the low side compared to the rest of the industry. OVV is outperformed by 62.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.24%, OVV belongs to the top of the industry, outperforming 84.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OVV is below the industry average of 21.09%.
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 has a Profit Margin of 2.64%. This is comparable to the rest of the industry: OVV outperforms 41.90% of its industry peers.
In the last couple of years the Profit Margin of OVV has grown nicely.
The Operating Margin of OVV (23.04%) is better than 60.95% of its industry peers.
In the last couple of years the Operating Margin of OVV has grown nicely.
The Gross Margin of OVV (70.19%) is better than 80.48% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
OVV has a better debt/assets ratio than last year.
2.2 Solvency
OVV has an Altman-Z score of 1.47. 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 1.47, OVV is in line with its industry, outperforming 55.71% of the companies in the same industry.
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 is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
OVV has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.43, OVV perfoms like the industry average, outperforming 54.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.51 | ||
| Altman-Z | 1.47 |
ROIC/WACC1.15
WACC8.93%
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 86.67% of the companies in the same industry.
OVV has a Quick Ratio of 0.45. 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 worse Quick ratio (0.45) than 84.76% 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.
Looking at the last year, OVV shows a very negative growth in Revenue. The Revenue has decreased by -11.66% in the last year.
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.
OVV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.76% yearly.
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
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
Based on the Price/Earnings ratio of 7.89, the valuation of OVV can be described as very cheap.
Based on the Price/Earnings ratio, OVV is valued cheaper than 86.19% of the companies in the same industry.
OVV is valuated cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
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 cheaper than 89.52% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, OVV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.89 | ||
| Fwd PE | 7.16 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OVV indicates a rather cheap valuation: OVV is cheaper than 85.71% of the companies listed in the same industry.
OVV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. OVV is cheaper than 88.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.49 | ||
| EV/EBITDA | 3.49 |
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)0.65
EPS Next 2Y-4.75%
EPS Next 3Y6.31%
5. Dividend
5.1 Amount
OVV has a Yearly Dividend Yield of 3.23%.
Compared to an average industry Dividend Yield of 3.95, OVV has a dividend in line with its industry peers.
OVV's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
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 last 3 years.
Dividend Growth(5Y)21.3%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
131.36% of the earnings are spent on dividend by OVV. This is not a sustainable payout ratio.
OVV's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP131.36%
EPS Next 2Y-4.75%
EPS Next 3Y6.31%
38.05
+0.03 (+0.08%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners91.48%
Inst Owner Change1.8%
Ins Owners0.5%
Ins Owner Change-3.21%
Market Cap9.64B
Revenue(TTM)8.95B
Net Income(TTM)236.00M
Analysts81.43
Price TargetN/A
Short Float %4.14%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
Yearly Dividend1.19
Dividend Growth(5Y)21.3%
DP131.36%
Div Incr Years4
Div Non Decr Years4
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)2.21%
PT rev (3m)-1.49%
EPS NQ rev (1m)-4.08%
EPS NQ rev (3m)-25.12%
EPS NY rev (1m)-2.84%
EPS NY rev (3m)-7.5%
Revenue NQ rev (1m)-2.75%
Revenue NQ rev (3m)-5.39%
Revenue NY rev (1m)0.98%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.89 | ||
| Fwd PE | 7.16 | ||
| P/S | 1.08 | ||
| P/FCF | 6.49 | ||
| P/OCF | 2.59 | ||
| P/B | 0.94 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 3.49 |
EPS(TTM)4.82
EY12.67%
EPS(NY)5.32
Fwd EY13.97%
FCF(TTM)5.86
FCFY15.4%
OCF(TTM)14.68
OCFY38.58%
SpS35.34
BVpS40.41
TBVpS30.28
PEG (NY)N/A
PEG (5Y)0.65
Graham Number66.2
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 | 1.47 |
F-Score6
WACC8.93%
ROIC/WACC1.15
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 FAQ
What is the ChartMill fundamental rating of OVINTIV INC (OVV) stock?
ChartMill assigns a fundamental rating of 5 / 10 to OVV.
What is the valuation status of OVINTIV INC (OVV) stock?
ChartMill assigns a valuation rating of 8 / 10 to OVINTIV INC (OVV). This can be considered as Undervalued.
What is the profitability of OVV stock?
OVINTIV INC (OVV) has a profitability rating of 6 / 10.
What is the earnings growth outlook for OVINTIV INC?
The Earnings per Share (EPS) of OVINTIV INC (OVV) 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) is 5 / 10 and the dividend payout ratio is 131.36%.