| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 4/6 |
| Past Performance | 0/6 |
| Financial Health | 2/6 |
| Dividends | 1/6 |
OVV Stock Overview
Ovintiv Inc., together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas, oil, and natural gas liquids.
Rewards
Risk Analysis
No risks detected for OVV from our risk checks.
Ovintiv Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | CA$46.26 |
| 52 Week High | CA$51.97 |
| 52 Week Low | CA$19.86 |
| Beta | 4.34 |
| 1 Month Change | 11.02% |
| 3 Month Change | -4.32% |
| 1 Year Change | 112.49% |
| 3 Year Change | 0.13% |
| 5 Year Change | -45.86% |
| Change since IPO | 28.72% |
Recent News & Updates
Does Ovintiv (TSE:OVV) Have A Healthy Balance Sheet?
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...
Ovintiv (TSE:OVV) Has A Somewhat Strained Balance Sheet
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Shareholder Returns
| OVV | CA Oil and Gas | CA Market | |
|---|---|---|---|
| 7D | -10.8% | 1.2% | -1.1% |
| 1Y | 112.5% | 54.0% | 17.4% |
Return vs Industry: OVV exceeded the Canadian Oil and Gas industry which returned 53.8% over the past year.
Return vs Market: OVV exceeded the Canadian Market which returned 17.7% over the past year.
Price Volatility
| OVV volatility | |
|---|---|
| OVV Average Weekly Movement | 7.6% |
| Oil and Gas Industry Average Movement | 10.0% |
| Market Average Movement | 9.8% |
| 10% most volatile stocks in CA Market | 17.5% |
| 10% least volatile stocks in CA Market | 3.7% |
Stable Share Price: OVV is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: OVV's weekly volatility (8%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2020 | 1,916 | Brendan McCracken | https://www.ovintiv.com |
Ovintiv Inc., together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas, oil, and natural gas liquids. It operates through USA Operations, Canadian Operations, and Market Optimization segments. The company’s principal assets include Permian in west Texas and Anadarko in west-central Oklahoma; and Montney in northeast British Columbia and northwest Alberta.
Ovintiv Fundamentals Summary
| OVV fundamental statistics | |
|---|---|
| Market Cap | US$9.64b |
| Earnings (TTM) | -US$582.00m |
| Revenue (TTM) | US$9.03b |
1.1x
P/S Ratio-16.6x
P/E RatioIs OVV overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| OVV income statement (TTM) | |
|---|---|
| Revenue | US$9.03b |
| Cost of Revenue | US$4.76b |
| Gross Profit | US$4.27b |
| Expenses | US$4.85b |
| Earnings | -US$582.00m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 24, 2022
| Earnings per share (EPS) | -2.23 |
| Gross Margin | 47.31% |
| Net Profit Margin | -6.44% |
| Debt/Equity Ratio | 126.2% |
How did OVV perform over the long term?
See historical performance and comparisonDividends
1.5%
Current Dividend Yield-19%
Payout RatioValuation
Is Ovintiv undervalued compared to its fair value and its price relative to the market?
42.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: OVV (CA$47.41) is trading below our estimate of fair value (CA$107.72)
Significantly Below Fair Value: OVV is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: OVV is unprofitable, so we can't compare its PE Ratio to the Canadian Oil and Gas industry average.
PE vs Market: OVV is unprofitable, so we can't compare its PE Ratio to the Canadian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate OVV's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: OVV is overvalued based on its PB Ratio (2.6x) compared to the CA Oil and Gas industry average (2.1x).
Future Growth
How is Ovintiv forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
26.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OVV is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).
Earnings vs Market: OVV is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: OVV's is expected to become profitable in the next 3 years.
Revenue vs Market: OVV's revenue (4.2% per year) is forecast to grow slower than the Canadian market (5.7% per year).
High Growth Revenue: OVV's revenue (4.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: OVV's Return on Equity is forecast to be high in 3 years time (35.7%)
Past Performance
How has Ovintiv performed over the past 5 years?
-48.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OVV is currently unprofitable.
Growing Profit Margin: OVV is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: OVV is unprofitable, and losses have increased over the past 5 years at a rate of 48.4% per year.
Accelerating Growth: Unable to compare OVV's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: OVV is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (159%).
Return on Equity
High ROE: OVV has a negative Return on Equity (-15.33%), as it is currently unprofitable.
Financial Health
How is Ovintiv's financial position?
Financial Position Analysis
Short Term Liabilities: OVV's short term assets ($1.3B) do not cover its short term liabilities ($3.4B).
Long Term Liabilities: OVV's short term assets ($1.3B) do not cover its long term liabilities ($6.5B).
Debt to Equity History and Analysis
Debt Level: OVV's net debt to equity ratio (126%) is considered high.
Reducing Debt: OVV's debt to equity ratio has increased from 66.5% to 126.2% over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable OVV has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: OVV is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 56.1% per year.
Dividend
What is Ovintiv current dividend yield, its reliability and sustainability?
1.52%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: OVV's dividend (1.47%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.58%).
High Dividend: OVV's dividend (1.47%) is low compared to the top 25% of dividend payers in the Canadian market (4.59%).
Stability and Growth of Payments
Stable Dividend: OVV's dividend payments have been volatile in the past 10 years.
Growing Dividend: OVV's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: OVV is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: OVV's dividends in 3 years are forecast to be thoroughly covered by earnings (8.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
Brendan McCracken (45 yo)
1.08yrs
Tenure
US$2,001,208
Compensation
Mr. Brendan Michael McCracken serves as President of Ovintiv Inc. since December 2020 and serves as its Chief Executive Officer and Director since August 1, 2021 and served as Executive Vice President of C...
CEO Compensation Analysis
Compensation vs Market: Brendan's total compensation ($USD2.00M) is below average for companies of similar size in the Canadian market ($USD5.92M).
Compensation vs Earnings: Insufficient data to compare Brendan's compensation with company performance.
Leadership Team
Experienced Management: OVV's management team is considered experienced (2.3 years average tenure).
Board Members
Experienced Board: OVV's board of directors are considered experienced (5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Ovintiv Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: Ovintiv Inc.
- Ticker: OVV
- Exchange: TSX
- Founded: 2020
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Implied Market Cap: CA$12.078b
- Shares outstanding: 261.08m
- Website: https://www.ovintiv.com
Number of Employees
Location
- Ovintiv Inc.
- 370 17th Street
- Suite 1700
- Denver
- Colorado
- 80202
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 23:43 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.