Executive Summary
Ovintiv Inc., together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas, oil, and natural gas liquids. More Details
Rewards
Risk Analysis
Dividend of 4.13% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Moderate growth potential and overvalued.
Similar Companies
Share Price & News
How has Ovintiv's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: OVV's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-7.6%
OVV
-8.5%
CA Oil and Gas
-8.1%
CA Market
1 Year Return
-55.4%
OVV
-62.7%
CA Oil and Gas
-60.7%
CA Market
Return vs Industry: OVV exceeded the Canadian Oil and Gas industry which returned -62.7% over the past year.
Return vs Market: OVV exceeded the Canadian Market which returned -60.7% over the past year.
Shareholder returns
| OVV | Industry | Market | |
|---|---|---|---|
| 7 Day | -7.6% | -8.5% | -8.1% |
| 30 Day | 11.3% | -7.2% | -6.7% |
| 90 Day | -6.5% | -28.2% | -26.5% |
| 1 Year | -52.7%-55.4% | -61.1%-62.7% | -59.0%-60.7% |
| 3 Year | -83.4%-84.6% | -62.4%-66.3% | -60.3%-64.4% |
| 5 Year | -75.0%-77.4% | -54.4%-61.6% | -51.7%-59.4% |
Price Volatility Vs. Market
How volatile is Ovintiv's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
What Does Ovintiv's (TSE:OVV) CEO Pay Reveal?1 month ago | Simply Wall St
Independent Director Howard Mayson Just Sold A Bunch Of Shares In Ovintiv Inc. (TSE:OVV)1 month ago | Simply Wall St
Ovintiv (TSE:OVV) Seems To Be Using A Lot Of DebtValuation
Is Ovintiv undervalued compared to its fair value and its price relative to the market?
0.4x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: OVV (CA$12.12) is trading above our estimate of fair value (CA$6.92)
Significantly Below Fair Value: OVV is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: OVV is unprofitable, so we can't compare its PE Ratio to the CA 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 good value based on its PB Ratio (0.4x) compared to the CA Oil and Gas industry average (0.7x).
Next Steps
Future Growth
How is Ovintiv forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
84.7%
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 (1.7%).
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 (1.1% per year) is forecast to grow slower than the Canadian market (7.3% per year).
High Growth Revenue: OVV's revenue (1.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: OVV is forecast to be unprofitable in 3 years.
Next Steps
Past Performance
How has Ovintiv performed over the past 5 years?
45.8%
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, but has reduced losses over the past 5 years at a rate of 45.8% 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 (-50.9%).
Return on Equity
High ROE: OVV has a negative Return on Equity (-65.03%), as it is currently unprofitable.
Next Steps
Financial Health
How is Ovintiv's financial position?
Financial Position Analysis
Short Term Liabilities: OVV's short term assets ($1.5B) do not cover its short term liabilities ($1.7B).
Long Term Liabilities: OVV's short term assets ($1.5B) do not cover its long term liabilities ($9.3B).
Debt to Equity History and Analysis
Debt Level: OVV's debt to equity ratio (125.4%) is considered high.
Reducing Debt: OVV's debt to equity ratio has increased from 78.4% to 125.4% 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: Insufficient data to determine if OVV has enough cash runway based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if OVV has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
Next Steps
Dividend
What is Ovintiv current dividend yield, its reliability and sustainability?
4.13%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: OVV's dividend (4.13%) is higher than the bottom 25% of dividend payers in the Canadian market (1.75%).
High Dividend: OVV's dividend (4.13%) is low compared to the top 25% of dividend payers in the Canadian market (6.04%).
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 not forecast to be well covered by earnings (93.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.4yrs
Average management tenure
CEO
Doug Suttles (59 yo)
7.33yrs
Tenure
US$12,570,394
Compensation
Mr. Douglas James Suttles, also known as Doug, has been the Chief Executive Officer of Ovintiv Inc. (Formerly known as Encana Corporation) since June 10, 2013 and has been its President since June 30, 2020 ...
CEO Compensation Analysis
Compensation vs Market: Doug's total compensation ($USD12.57M) is above average for companies of similar size in the Canadian market ($USD2.02M).
Compensation vs Earnings: Doug's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 7.33yrs | US$12.57m | 0.036% $ 1.1m | |
| Executive VP & CFO | 1.42yrs | US$1.91m | 0.0070% $ 221.4k | |
| Executive Vice President of Midstream | 10.92yrs | US$2.69m | 0.0025% $ 79.4k | |
| Executive VP & COO | 1.08yrs | no data | no data | |
| Senior Vice President of Investor Relations | no data | no data | 0.022% $ 685.0k | |
| Executive VP | 5.75yrs | no data | 0.0040% $ 124.4k | |
| Vice-President of Communications | no data | no data | no data | |
| Executive Vice President of Corporate Development & External Affairs | 1.08yrs | no data | 0.0040% $ 127.6k | |
| Executive Vice President of Corporate Services | 0.75yr | no data | 0.0036% $ 113.7k |
1.4yrs
Average Tenure
51yo
Average Age
Experienced Management: OVV's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 7.33yrs | US$12.57m | 0.036% $ 1.1m | |
| Independent Chairman | 0.33yr | US$235.38k | 0.0026% $ 83.1k | |
| Independent Director | 10.58yrs | US$225.27k | 0.0077% $ 242.5k | |
| Independent Director | 10.42yrs | US$245.38k | 0.040% $ 1.3m | |
| Independent Director | 1.58yrs | US$218.59k | 0.060% $ 1.9m | |
| Independent Director | 7.58yrs | US$225.38k | 0.0066% $ 208.5k | |
| Independent Director | 1.58yrs | US$218.59k | 0.0063% $ 199.0k | |
| Independent Director | 5.83yrs | US$225.38k | 0.0047% $ 147.4k | |
| Independent Director | 10.75yrs | US$240.38k | 0.0032% $ 101.1k | |
| Independent Director | 5.58yrs | US$225.38k | 0.0034% $ 106.8k | |
| Independent Director | 6.33yrs | US$235.38k | 0.0062% $ 195.3k |
6.3yrs
Average Tenure
66yo
Average Age
Experienced Board: OVV's board of directors are considered experienced (6.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: OVV 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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: Ovintiv Inc.
- Ticker: OVV
- Exchange: TSX
- Founded:
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Market Cap: CA$3.150b
- Shares outstanding: 259.86m
- Website: https://www.ovintiv.com
Number of Employees
Location
- Ovintiv Inc.
- 370 17th Street
- Suite 1700
- Denver
- Colorado
- 80202
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| OVV | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Dec 1972 |
| OVV | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Dec 1972 |
| 47Q | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Dec 1972 |
Biography
Ovintiv Inc., together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas, oil, and natural gas liquids. The company’s principal assets include Permian ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/30 04:10 |
| End of Day Share Price | 2020/10/29 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.