OVINTIV INC (OVV) Stock Fundamental Analysis
USA - NYSE:OVV - US69047Q1022 - Common Stock
42.35 USD
+1.68 (+4.13%)
42.35 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. 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.
OVV had a positive operating cash flow in the past year.
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
The Return On Assets of OVV (3.02%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 5.73%, OVV is in line with its industry, outperforming 45.71% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.72%, OVV belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for OVV is below the industry average of 21.90%.
The last Return On Invested Capital (10.72%) 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 | 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 47.62% of the companies in the same industry.
In the last couple of years the Profit Margin of OVV has grown nicely.
OVV has a Operating Margin (23.61%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of OVV has grown nicely.
OVV has a better Gross Margin (69.47%) than 79.05% of its industry peers.
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.
OVV has less shares outstanding than it did 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
Based on the Altman-Z score of 1.53, we must say that OVV is in the distress zone and has some risk of bankruptcy.
OVV's Altman-Z score of 1.53 is in line compared to the rest of the industry. OVV outperforms 56.67% of its industry peers.
OVV has a debt to FCF ratio of 3.14. This is a good value and a sign of high solvency as OVV would need 3.14 years to pay back of all of its debts.
OVV has a better Debt to FCF ratio (3.14) than 77.14% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that OVV is not too dependend on debt financing.
OVV has a Debt to Equity ratio (0.42) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 1.53 |
ROIC/WACC1.2
WACC8.92%
2.3 Liquidity
A Current Ratio of 0.43 indicates that OVV may have some problems paying its short term obligations.
OVV's Current ratio of 0.43 is on the low side compared to the rest of the industry. OVV is outperformed by 88.10% 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.
OVV has a Quick ratio of 0.43. This is amonst the worse of the industry: OVV underperforms 87.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
OVV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.44%.
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 -11.94% in the last year.
OVV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.35% yearly.
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
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.
OVV is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.04% yearly.
EPS Next Y-18.96%
EPS Next 2Y-0.11%
EPS Next 3Y9.88%
EPS Next 5Y-1.03%
Revenue Next Year-2.39%
Revenue Next 2Y-2.34%
Revenue Next 3Y-0.04%
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
The Price/Earnings ratio is 7.51, which indicates a rather cheap valuation of OVV.
Based on the Price/Earnings ratio, OVV is valued cheaper than 86.67% of the companies in the same industry.
OVV's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
A Price/Forward Earnings ratio of 7.24 indicates a rather cheap valuation of OVV.
85.24% of the companies in the same industry are more expensive than OVV, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of OVV to the average of the S&P500 Index (22.71), we can say OVV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.51 | ||
| Fwd PE | 7.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OVV is valued cheaper than 84.29% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OVV is valued cheaper than 88.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.39 | ||
| EV/EBITDA | 3.66 |
4.3 Compensation for Growth
The decent profitability rating of OVV may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.62
EPS Next 2Y-0.11%
EPS Next 3Y9.88%
5. Dividend
5.1 Amount
OVV has a Yearly Dividend Yield of 2.83%.
OVV's Dividend Yield is comparable with the industry average which is at 6.18.
Compared to an average S&P500 Dividend Yield of 2.38, OVV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
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
52.27% of the earnings are spent on dividend by OVV. 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-0.11%
EPS Next 3Y9.88%
42.35
+1.68 (+4.13%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners91.36%
Inst Owner Change-4.11%
Ins Owners0.5%
Ins Owner Change2.85%
Market Cap10.86B
Analysts80
Price Target55.97 (32.16%)
Short Float %3.27%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
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)-0.41%
PT rev (3m)5.14%
EPS NQ rev (1m)-4%
EPS NQ rev (3m)-2.03%
EPS NY rev (1m)-2.72%
EPS NY rev (3m)-0.89%
Revenue NQ rev (1m)2.36%
Revenue NQ rev (3m)1.5%
Revenue NY rev (1m)2.24%
Revenue NY rev (3m)3.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.51 | ||
| Fwd PE | 7.24 | ||
| P/S | 1.18 | ||
| P/FCF | 6.39 | ||
| P/OCF | 2.77 | ||
| P/B | 1.05 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 3.66 |
EPS(TTM)5.64
EY13.32%
EPS(NY)5.85
Fwd EY13.81%
FCF(TTM)6.63
FCFY15.65%
OCF(TTM)15.31
OCFY36.16%
SpS35.89
BVpS40.45
TBVpS30.4
PEG (NY)N/A
PEG (5Y)0.62
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 | 1.53 |
F-Score6
WACC8.92%
ROIC/WACC1.2
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-18.96%
EPS Next 2Y-0.11%
EPS Next 3Y9.88%
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-2.39%
Revenue Next 2Y-2.34%
Revenue Next 3Y-0.04%
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%