OVINTIV INC (OVV) Stock Fundamental Analysis
USA - NYSE:OVV - US69047Q1022 - Common Stock
37.56 USD
+0.92 (+2.51%)
37.56 USD
0 (0%)
OVV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. OVV has an average financial health and profitability rating. 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.
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
OVV has a Return On Assets (3.02%) which is in line with its industry peers.
OVV has a Return On Equity (5.73%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 10.72%, OVV belongs to the top of the industry, outperforming 82.86% 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 21.78%.
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
OVV's Profit Margin of 6.46% is in line compared to the rest of the industry. OVV outperforms 47.62% of its industry peers.
OVV's Profit Margin has improved in the last couple of years.
OVV has a Operating Margin of 23.61%. This is in the better half of the industry: OVV outperforms 60.48% of its industry peers.
In the last couple of years the Operating Margin of OVV has grown nicely.
OVV has a better Gross Margin (69.47%) than 78.10% 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.
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.
Compared to 1 year ago, OVV has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.46, we must say that OVV is in the distress zone and has some risk of bankruptcy.
OVV has a Altman-Z score of 1.46. This is comparable to the rest of the industry: OVV outperforms 54.76% of its industry peers.
The Debt to FCF ratio of OVV is 3.14, which is a good value as it means it would take OVV, 3.14 years of fcf income to pay off all of its debts.
OVV has a better Debt to FCF ratio (3.14) than 76.19% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that OVV is not too dependend on debt financing.
The Debt to Equity ratio of OVV (0.42) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 1.46 |
ROIC/WACC1.21
WACC8.83%
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.
The Current ratio of OVV (0.43) is worse than 88.57% 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's Quick ratio of 0.43 is on the low side compared to the rest of the industry. OVV is outperformed by 87.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The earnings per share for OVV have decreased strongly by -29.74% in the last year.
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 -15.91% 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)-29.74%
EPS 3Y5.72%
EPS 5Y12.1%
EPS Q2Q%-44.32%
Revenue 1Y (TTM)-15.91%
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 decrease in Revenue. In the coming years, the Revenue will decrease by -0.39% yearly.
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
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
Based on the Price/Earnings ratio of 7.79, the valuation of OVV can be described as very cheap.
OVV's Price/Earnings ratio is rather cheap when compared to the industry. OVV is cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.67. OVV is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.82, 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 90.48% 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 (31.86), we can say OVV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.79 | ||
| Fwd PE | 6.82 |
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.
Based on the Price/Free Cash Flow ratio, OVV is valued cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.67 | ||
| EV/EBITDA | 3.38 |
4.3 Compensation for Growth
The decent profitability rating of OVV may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.64
EPS Next 2Y-3.06%
EPS Next 3Y4.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.28%, OVV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.81, 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
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.
The Dividend Rate of OVV has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP52.27%
EPS Next 2Y-3.06%
EPS Next 3Y4.61%
37.56
+0.92 (+2.51%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners89.12%
Inst Owner Change0.84%
Ins Owners0.5%
Ins Owner Change2.85%
Market Cap9.64B
Revenue(TTM)9.15B
Net Income(TTM)595.00M
Analysts80
Price Target53.94 (43.61%)
Short Float %2.55%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
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)-3.63%
PT rev (3m)-0.24%
EPS NQ rev (1m)-10.38%
EPS NQ rev (3m)-14.85%
EPS NY rev (1m)-2.93%
EPS NY rev (3m)-6.23%
Revenue NQ rev (1m)-1.08%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.79 | ||
| Fwd PE | 6.82 | ||
| P/S | 1.05 | ||
| P/FCF | 5.67 | ||
| P/OCF | 2.45 | ||
| P/B | 0.93 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 3.38 |
EPS(TTM)4.82
EY12.83%
EPS(NY)5.51
Fwd EY14.66%
FCF(TTM)6.63
FCFY17.64%
OCF(TTM)15.31
OCFY40.77%
SpS35.89
BVpS40.45
TBVpS30.4
PEG (NY)N/A
PEG (5Y)0.64
Graham Number66.23
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%
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 Turnover0.47
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 | 1.46 |
F-Score6
WACC8.83%
ROIC/WACC1.21
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)-15.91%
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-19.66%
EBIT growth 3Y10.55%
EBIT growth 5Y22.99%
EBIT Next Year99.63%
EBIT Next 3Y29.68%
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%
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 5 / 10 and the dividend payout ratio is 52.27%.