OVINTIV INC (OVV) Stock Fundamental Analysis
NYSE:OVV - New York Stock Exchange, Inc. - US69047Q1022 - Common Stock - Currency: USD
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. OVV has an average financial health and profitability rating. OVV has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
OVV had positive earnings in the past year.
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
The Return On Assets of OVV (3.20%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 6.23%, OVV is in line with its industry, outperforming 44.76% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.13%, OVV belongs to the best of the industry, outperforming 80.48% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for OVV is significantly below the industry average of 23.80%.
The 3 year average ROIC (16.89%) for OVV is well above the current ROIC(11.13%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 6.23% | ||
| ROIC | 11.13% |
ROA(3y)13.48%
ROA(5y)1.67%
ROE(3y)26.1%
ROE(5y)-10.54%
ROIC(3y)16.89%
ROIC(5y)12.77%
1.3 Margins
OVV has a Profit Margin (6.84%) which is in line with its industry peers.
OVV's Profit Margin has improved in the last couple of years.
The Operating Margin of OVV (23.98%) is comparable to the rest of the industry.
OVV's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 70.16%, OVV is in the better half of the industry, outperforming 79.05% of the companies in the same industry.
OVV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.98% | ||
| PM (TTM) | 6.84% | ||
| GM | 70.16% |
OM growth 3Y8.05%
OM growth 5Y15.34%
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 just above the Cost of Capital (WACC), so OVV is still creating some value.
OVV has less shares outstanding than it did 1 year ago.
The number of shares outstanding for OVV remains at a similar level compared to 5 years ago.
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.
OVV has a Altman-Z score of 1.47. This is comparable to the rest of the industry: OVV outperforms 54.29% of its industry peers.
The Debt to FCF ratio of OVV is 3.45, which is a good value as it means it would take OVV, 3.45 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.45, OVV is in the better half of the industry, outperforming 75.71% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that OVV is not too dependend on debt financing.
OVV has a Debt to Equity ratio (0.44) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 1.47 |
ROIC/WACC1.15
WACC9.71%
2.3 Liquidity
OVV has a Current 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.
With a Current ratio value of 0.43, OVV is not doing good in the industry: 89.05% of the companies in the same industry are doing better.
A Quick Ratio of 0.43 indicates that OVV may have some problems paying its short term obligations.
OVV has a Quick ratio of 0.43. This is amonst the worse of the industry: OVV underperforms 86.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
OVV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.30%.
Measured over the past years, OVV shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.10% on average per year.
Looking at the last year, OVV shows a very negative growth in Revenue. The Revenue has decreased by -14.11% in the last year.
The Revenue has been growing slightly by 6.35% on average over the past years.
EPS 1Y (TTM)-9.3%
EPS 3Y5.72%
EPS 5Y12.1%
EPS Q2Q%-0.7%
Revenue 1Y (TTM)-14.11%
Revenue growth 3Y1.87%
Revenue growth 5Y6.35%
Sales Q2Q%1.06%
3.2 Future
Based on estimates for the next years, OVV will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.46% on average per year.
The Revenue is expected to decrease by -1.69% on average over the next years.
EPS Next Y-16.7%
EPS Next 2Y-3.79%
EPS Next 3Y6.95%
EPS Next 5Y8.46%
Revenue Next Year-5.05%
Revenue Next 2Y-3.24%
Revenue Next 3Y-1.69%
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.
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 6.74, the valuation of OVV can be described as very cheap.
84.29% of the companies in the same industry are more expensive than OVV, based on the Price/Earnings ratio.
OVV's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.54.
OVV is valuated cheaply with a Price/Forward Earnings ratio of 7.27.
Based on the Price/Forward Earnings ratio, OVV is valued cheaper than 80.95% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. OVV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.74 | ||
| Fwd PE | 7.27 |
4.2 Price Multiples
82.86% of the companies in the same industry are more expensive than OVV, based on the Enterprise Value to EBITDA ratio.
87.14% of the companies in the same industry are more expensive than OVV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.38 | ||
| EV/EBITDA | 3.57 |
4.3 Compensation for Growth
The decent profitability rating of OVV may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.56
EPS Next 2Y-3.79%
EPS Next 3Y6.95%
5. Dividend
5.1 Amount
OVV has a Yearly Dividend Yield of 3.00%.
Compared to an average industry Dividend Yield of 6.49, 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 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
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
OVV pays out 50.00% of its income as dividend. This is a bit on the high side, but may be sustainable.
OVV's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50%
EPS Next 2Y-3.79%
EPS Next 3Y6.95%
NYSE:OVV (7/21/2025, 12:23:07 PM)
39.42
-0.63 (-1.57%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners90.63%
Inst Owner Change-0.27%
Ins Owners0.49%
Ins Owner Change9.24%
Market Cap10.24B
Analysts80.74
Price Target54.07 (37.16%)
Short Float %2.66%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
Yearly Dividend1.19
Dividend Growth(5Y)21.3%
DP50%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.52%
Min EPS beat(2)15.15%
Max EPS beat(2)33.89%
EPS beat(4)3
Avg EPS beat(4)25.73%
Min EPS beat(4)-6.89%
Max EPS beat(4)60.77%
EPS beat(8)6
Avg EPS beat(8)17.12%
EPS beat(12)6
Avg EPS beat(12)3.31%
EPS beat(16)6
Avg EPS beat(16)-0.36%
Revenue beat(2)2
Avg Revenue beat(2)4.7%
Min Revenue beat(2)1.3%
Max Revenue beat(2)8.09%
Revenue beat(4)3
Avg Revenue beat(4)2.97%
Min Revenue beat(4)-7.18%
Max Revenue beat(4)9.67%
Revenue beat(8)6
Avg Revenue beat(8)5.04%
Revenue beat(12)9
Avg Revenue beat(12)11.64%
Revenue beat(16)10
Avg Revenue beat(16)11.34%
PT rev (1m)1.57%
PT rev (3m)-9.82%
EPS NQ rev (1m)-6.04%
EPS NQ rev (3m)-25.27%
EPS NY rev (1m)-1.36%
EPS NY rev (3m)-2.76%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)-10.68%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-3.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.74 | ||
| Fwd PE | 7.27 | ||
| P/S | 1.12 | ||
| P/FCF | 6.38 | ||
| P/OCF | 2.6 | ||
| P/B | 1.02 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 3.57 |
EPS(TTM)5.85
EY14.84%
EPS(NY)5.42
Fwd EY13.76%
FCF(TTM)6.18
FCFY15.68%
OCF(TTM)15.14
OCFY38.41%
SpS35.31
BVpS38.79
TBVpS28.99
PEG (NY)N/A
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 6.23% | ||
| ROCE | 13.38% | ||
| ROIC | 11.13% | ||
| ROICexc | 11.13% | ||
| ROICexgc | 13.17% | ||
| OM | 23.98% | ||
| PM (TTM) | 6.84% | ||
| GM | 70.16% | ||
| FCFM | 17.5% |
ROA(3y)13.48%
ROA(5y)1.67%
ROE(3y)26.1%
ROE(5y)-10.54%
ROIC(3y)16.89%
ROIC(5y)12.77%
ROICexc(3y)16.91%
ROICexc(5y)12.82%
ROICexgc(3y)20.7%
ROICexgc(5y)15.91%
ROCE(3y)20.31%
ROCE(5y)15.35%
ROICexcg growth 3Y-6.83%
ROICexcg growth 5Y26.41%
ROICexc growth 3Y-3.59%
ROICexc growth 5Y25.95%
OM growth 3Y8.05%
OM growth 5Y15.34%
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 | 0.44 | ||
| Debt/FCF | 3.45 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 102.64% | ||
| Cap/Sales | 25.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.03% | ||
| Profit Quality | 255.73% | ||
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 1.47 |
F-Score6
WACC9.71%
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)-9.3%
EPS 3Y5.72%
EPS 5Y12.1%
EPS Q2Q%-0.7%
EPS Next Y-16.7%
EPS Next 2Y-3.79%
EPS Next 3Y6.95%
EPS Next 5Y8.46%
Revenue 1Y (TTM)-14.11%
Revenue growth 3Y1.87%
Revenue growth 5Y6.35%
Sales Q2Q%1.06%
Revenue Next Year-5.05%
Revenue Next 2Y-3.24%
Revenue Next 3Y-1.69%
Revenue Next 5YN/A
EBIT growth 1Y-20.46%
EBIT growth 3Y10.06%
EBIT growth 5Y22.67%
EBIT Next Year99.58%
EBIT Next 3Y29.31%
EBIT Next 5Y28.96%
FCF growth 1Y-28.91%
FCF growth 3Y-4.14%
FCF growth 5Y36.89%
OCF growth 1Y-7.39%
OCF growth 3Y5.95%
OCF growth 5Y4.96%