TSX:OVV

Stock Analysis Report

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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


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

OVVIndustryMarket
7 Day-7.6%-8.5%-8.1%
30 Day11.3%-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

Valuation

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

NamePositionTenureCompensationOwnership
Douglas Suttles
President7.33yrsUS$12.57m0.036%
$ 1.1m
Corey Code
Executive VP & CFO1.42yrsUS$1.91m0.0070%
$ 221.4k
Renee Zemljak
Executive Vice President of Midstream10.92yrsUS$2.69m0.0025%
$ 79.4k
Gregory Givens
Executive VP & COO1.08yrsno datano data
Stephen Campbell
Senior Vice President of Investor Relationsno datano data0.022%
$ 685.0k
Joanne Alexander
Executive VP5.75yrsno data0.0040%
$ 124.4k
Simon Scott
Vice-President of Communicationsno datano datano data
Brendan McCracken
Executive Vice President of Corporate Development & External Affairs1.08yrsno data0.0040%
$ 127.6k
Rachel Moore
Executive Vice President of Corporate Services0.75yrno data0.0036%
$ 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

NamePositionTenureCompensationOwnership
Douglas Suttles
President7.33yrsUS$12.57m0.036%
$ 1.1m
Peter Dea
Independent Chairman0.33yrUS$235.38k0.0026%
$ 83.1k
Fred Fowler
Independent Director10.58yrsUS$225.27k0.0077%
$ 242.5k
Bruce Waterman
Independent Director10.42yrsUS$245.38k0.040%
$ 1.3m
Thomas Ricks
Independent Director1.58yrsUS$218.59k0.060%
$ 1.9m
Brian Shaw
Independent Director7.58yrsUS$225.38k0.0066%
$ 208.5k
Steven Nance
Independent Director1.58yrsUS$218.59k0.0063%
$ 199.0k
Lee McIntire
Independent Director5.83yrsUS$225.38k0.0047%
$ 147.4k
Suzanne Nimocks
Independent Director10.75yrsUS$240.38k0.0032%
$ 101.1k
Margaret McKenzie
Independent Director5.58yrsUS$225.38k0.0034%
$ 106.8k
Howard Mayson
Independent Director6.33yrsUS$235.38k0.0062%
$ 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OVVNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1972
OVVTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1972
47QDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 04:10
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.