OVINTIV INC (OVV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OVV - US69047Q1022 - Common Stock
37.73 USD
-1.06 (-2.73%)
37.5 USD
-0.23 (-0.61%)
We assign a fundamental rating of 5 out of 10 to OVV. OVV was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. OVV has only an average score on both its financial health and profitability. 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.
OVV had positive earnings in 4 of the past 5 years.
OVV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of OVV (1.22%) is worse than 62.98% of its industry peers.
With a Return On Equity value of 2.31%, OVV is not doing good in the industry: 63.46% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 10.24%, OVV belongs to the top of the industry, outperforming 84.13% 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 below the industry average of 21.28%.
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 (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.
With a decent Operating Margin value of 23.04%, OVV is doing good in the industry, outperforming 61.54% of the companies in the same industry.
OVV's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 70.19%, OVV is doing good in the industry, outperforming 79.33% 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 | 23.04% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so OVV is creating value.
Compared to 1 year ago, OVV has less shares outstanding
Compared to 5 years ago, OVV has about the same amount of shares outstanding.
The debt/assets ratio for OVV has been reduced compared to a year ago.
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.
OVV's Altman-Z score of 1.48 is in line compared to the rest of the industry. OVV outperforms 57.21% of its industry peers.
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.
OVV has a Debt to FCF ratio of 3.51. This is in the better half of the industry: OVV outperforms 73.56% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that OVV is not too dependend on debt financing.
OVV has a Debt to Equity ratio of 0.43. This is comparable to the rest of the industry: OVV outperforms 55.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.51 | ||
| Altman-Z | 1.48 |
ROIC/WACC1.16
WACC8.8%
2.3 Liquidity
OVV has a Current 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.
The Current ratio of OVV (0.45) is worse than 86.54% of its industry peers.
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 84.62% of its industry peers.
| 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.
The Revenue for OVV has decreased by -11.66% in the past year. This is quite bad
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
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 1.77% yearly.
EPS Next Y-25.15%
EPS Next 2Y-5.14%
EPS Next 3Y6%
EPS Next 5Y-1.03%
Revenue Next Year-2.65%
Revenue Next 2Y-0.51%
Revenue Next 3Y1.77%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 7.83, the valuation of OVV can be described as very cheap.
86.06% of the companies in the same industry are more expensive than OVV, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.17, OVV is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.15, 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 87.50% 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 (23.79), we can say OVV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.83 | ||
| Fwd PE | 7.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OVV is valued cheaper than 85.58% of the companies in the same industry.
OVV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. OVV is cheaper than 87.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.44 | ||
| EV/EBITDA | 3.53 |
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-5.14%
EPS Next 3Y6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.06%, OVV has a reasonable but not impressive dividend return.
OVV's Dividend Yield is comparable with the industry average which is at 3.96.
Compared to an average S&P500 Dividend Yield of 1.94, OVV pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
5.2 History
The dividend of OVV is nicely growing with an annual growth rate of 21.30%!
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-5.14%
EPS Next 3Y6%
37.73
-1.06 (-2.73%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners91.57%
Inst Owner Change0%
Ins Owners0.43%
Ins Owner Change-3.21%
Market Cap9.56B
Revenue(TTM)8.95B
Net Income(TTM)236.00M
Analysts81.43
Price Target55.18 (46.25%)
Short Float %4.63%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Yearly Dividend1.19
Dividend Growth(5Y)21.3%
DP131.36%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
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)0.7%
PT rev (3m)-0.75%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)-24.02%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-6.99%
Revenue NQ rev (1m)-1.08%
Revenue NQ rev (3m)-4.9%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.83 | ||
| Fwd PE | 7.15 | ||
| P/S | 1.07 | ||
| P/FCF | 6.44 | ||
| P/OCF | 2.57 | ||
| P/B | 0.93 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 3.53 |
EPS(TTM)4.82
EY12.77%
EPS(NY)5.27
Fwd EY13.98%
FCF(TTM)5.86
FCFY15.53%
OCF(TTM)14.68
OCFY38.91%
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 | 1.48 |
F-Score6
WACC8.8%
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)-29.74%
EPS 3Y5.72%
EPS 5Y12.1%
EPS Q2Q%-44.32%
EPS Next Y-25.15%
EPS Next 2Y-5.14%
EPS Next 3Y6%
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-2.65%
Revenue Next 2Y-0.51%
Revenue Next 3Y1.77%
Revenue Next 5YN/A
EBIT growth 1Y-25.45%
EBIT growth 3Y10.55%
EBIT growth 5Y22.99%
EBIT Next Year94.65%
EBIT Next 3Y33.06%
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.
Can you provide the valuation status for OVINTIV INC?
ChartMill assigns a valuation rating of 8 / 10 to OVINTIV INC (OVV). This can be considered as Undervalued.
Can you provide the profitability details for OVINTIV INC?
OVINTIV INC (OVV) has a profitability rating of 6 / 10.
Can you provide the financial health for OVV stock?
The financial health rating of OVINTIV INC (OVV) is 4 / 10.
How sustainable is the dividend of OVINTIV INC (OVV) stock?
The dividend rating of OVINTIV INC (OVV) is 5 / 10 and the dividend payout ratio is 131.36%.