OVINTIV INC (OVV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OVV - US69047Q1022 - Common Stock
40.45 USD
+1.42 (+3.64%)
40.45 USD
0 (0%)
Overall OVV gets a fundamental rating of 5 out of 10. We evaluated OVV against 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 valued quite cheap, but it does not seem to be growing.
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.
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 worse Return On Assets (1.22%) than 63.33% of its industry peers.
With a Return On Equity value of 2.31%, OVV is not doing good in the industry: 63.81% of the companies in the same industry are doing better.
OVV's Return On Invested Capital of 10.24% is amongst the best of the industry. OVV outperforms 82.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OVV is below the industry average of 21.41%.
The 3 year average ROIC (16.94%) for OVV is well above the current ROIC(10.24%). The reason for the recent decline needs to be investigated.
| 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 (2.64%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of OVV has grown nicely.
Looking at the Operating Margin, with a value of 23.04%, OVV is in the better half of the industry, outperforming 60.95% of the companies in the same industry.
OVV's Operating Margin has improved in the last couple of years.
OVV has a Gross Margin of 70.19%. This is amongst the best in the industry. OVV outperforms 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.
OVV has about the same amout of shares outstanding than it did 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 1.52, we must say that OVV is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of OVV (1.52) is comparable to the rest of the industry.
OVV has a debt to FCF ratio of 3.51. This is a good value and a sign of high solvency as OVV would need 3.51 years to pay back of all of its debts.
The Debt to FCF ratio of OVV (3.51) is better than 74.29% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that OVV is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.43, OVV perfoms like the industry average, outperforming 53.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.51 | ||
| Altman-Z | 1.52 |
ROIC/WACC1.15
WACC8.89%
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 88.57% 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.
With a Quick ratio value of 0.45, OVV is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The earnings per share for OVV have decreased strongly by -29.74% in the last year.
OVV shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.10% yearly.
OVV shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.66%.
OVV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.35% yearly.
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
Based on estimates for the next years, OVV will show a decrease in Earnings Per Share. The EPS will decrease by -1.03% on average per year.
Based on estimates for the next years, OVV will show a decrease in Revenue. The Revenue will decrease by -0.39% on average per year.
EPS Next Y-22.85%
EPS Next 2Y-3.06%
EPS Next 3Y4.61%
EPS Next 5Y-1.03%
Revenue Next Year-3.35%
Revenue Next 2Y-3.56%
Revenue Next 3Y-0.39%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.39 indicates a reasonable valuation of OVV.
Based on the Price/Earnings ratio, OVV is valued cheaply inside the industry as 86.19% 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 26.15.
Based on the Price/Forward Earnings ratio of 7.35, the valuation of OVV can be described as very cheap.
88.10% of the companies in the same industry are more expensive than OVV, based on the Price/Forward Earnings ratio.
OVV is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.39 | ||
| Fwd PE | 7.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OVV is valued cheaply inside the industry as 84.29% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, OVV is valued cheaply inside the industry as 88.10% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.99 | ||
| EV/EBITDA | 3.66 |
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)0.69
EPS Next 2Y-3.06%
EPS Next 3Y4.61%
5. Dividend
5.1 Amount
OVV has a Yearly Dividend Yield of 3.11%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.88, 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
5.2 History
The dividend of OVV is nicely growing with an annual growth rate of 21.30%!
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 131.36% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of OVV has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP131.36%
EPS Next 2Y-3.06%
EPS Next 3Y4.61%
40.45
+1.42 (+3.64%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners89.12%
Inst Owner Change1.79%
Ins Owners0.5%
Ins Owner Change-0.33%
Market Cap10.38B
Revenue(TTM)8.95B
Net Income(TTM)236.00M
Analysts80
Price Target54.8 (35.48%)
Short Float %2.43%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
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)-1.44%
PT rev (3m)-2.26%
EPS NQ rev (1m)-9.33%
EPS NQ rev (3m)-22.27%
EPS NY rev (1m)-1.24%
EPS NY rev (3m)-4.8%
Revenue NQ rev (1m)1.07%
Revenue NQ rev (3m)-3.04%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.39 | ||
| Fwd PE | 7.35 | ||
| P/S | 1.16 | ||
| P/FCF | 6.99 | ||
| P/OCF | 2.79 | ||
| P/B | 1.01 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 3.66 |
EPS(TTM)4.82
EY11.92%
EPS(NY)5.51
Fwd EY13.61%
FCF(TTM)5.78
FCFY14.3%
OCF(TTM)14.49
OCFY35.83%
SpS34.88
BVpS39.89
TBVpS29.89
PEG (NY)N/A
PEG (5Y)0.69
Graham Number65.78
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 | 1.52 |
F-Score6
WACC8.89%
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-22.85%
EPS Next 2Y-3.06%
EPS Next 3Y4.61%
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-3.35%
Revenue Next 2Y-3.56%
Revenue Next 3Y-0.39%
Revenue Next 5YN/A
EBIT growth 1Y-25.45%
EBIT growth 3Y10.55%
EBIT growth 5Y22.99%
EBIT Next Year99.63%
EBIT Next 3Y29.68%
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 -22.85% in the next year.
Can you provide the dividend sustainability for OVV stock?
The dividend rating of OVINTIV INC (OVV) is 4 / 10 and the dividend payout ratio is 131.36%.