Executive Summary
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
Earnings are forecast to decline by an average of -19.6% per year for the next 3 years
+ 3 more risks
Snowflake Analysis
Undervalued average dividend payer.
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
28.8%
OVV
12.8%
CA Oil and Gas
3.0%
CA Market
1 Year Return
-89.9%
OVV
-41.0%
CA Oil and Gas
-24.5%
CA Market
Return vs Industry: OVV underperformed the Canadian Oil and Gas industry which returned -40.4% over the past year.
Return vs Market: OVV underperformed the Canadian Market which returned -23.3% over the past year.
Shareholder returns
| OVV | Industry | Market | |
|---|---|---|---|
| 7 Day | 28.8% | 12.8% | 3.0% |
| 30 Day | -61.5% | -32.6% | -21.2% |
| 90 Day | -84.4% | -40.1% | -24.4% |
| 1 Year | -89.5%-89.9% | -37.9%-41.0% | -22.0%-24.5% |
| 3 Year | -93.4%-93.8% | -42.1%-48.8% | -13.9%-21.9% |
| 5 Year | -92.7%-93.4% | -44.1%-53.6% | -2.0%-16.6% |
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
1 week ago | Simply Wall St
Introducing Ovintiv (TSE:OVV), The Stock That Collapsed 95%4 weeks ago | Simply Wall St
Income Investors Should Know That Ovintiv Inc. (TSE:OVV) Goes Ex-Dividend Soon1 month ago | Simply Wall St
Ovintiv (TSE:OVV) Has A Somewhat Strained Balance SheetValuation
Is Ovintiv undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: OVV (CA$4.5) is trading below our estimate of fair value (CA$22.7)
Significantly Below Fair Value: OVV is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: OVV is good value based on its PE Ratio (3.6x) compared to the Oil and Gas industry average (6.2x).
PE vs Market: OVV is good value based on its PE Ratio (3.6x) compared to the Canadian market (10.6x).
Price to Earnings Growth Ratio
PEG Ratio: OVV's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: OVV is good value based on its PB Ratio (0.1x) compared to the CA Oil and Gas industry average (0.4x).
Next Steps
Future Growth
How is Ovintiv forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
-52.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OVV's earnings are forecast to decline over the next 3 years (-19.6% per year).
Earnings vs Market: OVV's earnings are forecast to decline over the next 3 years (-19.6% per year).
High Growth Earnings: OVV's earnings are forecast to decline over the next 3 years.
Revenue vs Market: OVV's revenue is expected to decline over the next 3 years (-9.9% per year).
High Growth Revenue: OVV's revenue is forecast to decline over the next 3 years (-9.9% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: OVV's Return on Equity is forecast to be low in 3 years time (5%).
Next Steps
Past Performance
How has Ovintiv performed over the past 5 years?
31.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OVV has a large one-off loss of $168.0M impacting its December 31 2019 financial results.
Growing Profit Margin: OVV's current net profit margins (3.3%) are lower than last year (19.6%).
Past Earnings Growth Analysis
Earnings Trend: OVV has become profitable over the past 5 years, growing earnings by 31.2% per year.
Accelerating Growth: OVV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: OVV had negative earnings growth (-78.1%) over the past year, making it difficult to compare to the Oil and Gas industry average (-2.5%).
Return on Equity
High ROE: OVV's Return on Equity (2.4%) is considered low.
Next Steps
Financial Health
How is Ovintiv's financial position?
Financial Position Analysis
Short Term Liabilities: OVV's short term assets ($1.9B) do not cover its short term liabilities ($2.4B).
Long Term Liabilities: OVV's short term assets ($1.9B) do not cover its long term liabilities ($9.1B).
Debt to Equity History and Analysis
Debt Level: OVV's debt to equity ratio (70.2%) is considered high.
Reducing Debt: OVV's debt to equity ratio has reduced from 75.8% to 70.2% over the past 5 years.
Balance Sheet
Inventory Level: OVV has a high level of physical assets or inventory.
Debt Coverage by Assets: OVV's debt is not covered by short term assets (assets are 0.3x debt).
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: OVV is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: OVV is profitable, therefore cash runway is not a concern.
Next Steps
Dividend
What is Ovintiv's current dividend yield, its reliability and sustainability?
10.97%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: OVV's dividend (11.79%) is higher than the bottom 25% of dividend payers in the Canadian market (2.67%).
High Dividend: OVV's dividend (11.79%) is in the top 25% of dividend payers in the Canadian market (8.63%)
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: With its reasonably low payout ratio (41.9%), OVV's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: OVV's dividends in 3 years are forecast to be covered by earnings (87.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.9yrs
Average management tenure
CEO
Doug Suttles (58yo)
6.83s
Tenure
US$12,570,394
Compensation
Mr. Douglas James Suttles, also known as Doug, has been the Chief Executive Officer of Ovintiv Inc. (Formerly known as Encana Corporation) since June 10, 2013 and also served as its President. Mr. Suttles ...
CEO Compensation Analysis
Compensation vs Market: Doug's total compensation ($USD12.57M) is above average for companies of similar size in the Canadian market ($USD1.70M).
Compensation vs Earnings: Doug's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 6.83yrs | US$12.57m | 0.034% $431.4k | |
| President | 0.58yr | US$5.25m | 0.0081% $101.5k | |
| Executive VP & CFO | 0.92yr | US$1.91m | 0.0070% $88.2k | |
| Executive Vice President of Midstream | 10.42yrs | US$2.69m | 0.0025% $31.6k | |
| Executive Vice President of Land & Exploration | no data | US$2.61m | 0.0039% $48.3k | |
| Executive VP & COO | 0.58yr | no data | no data | |
| Senior Vice President of Investor Relations | no data | no data | 0.022% $272.9k | |
| Executive VP | 5.25yrs | no data | 0.0040% $49.6k | |
| Vice-President of Communications | no data | no data | no data | |
| Executive Vice President of Corporate Development & External Relations | 0.58yr | no data | 0.0040% $50.8k |
0.9yrs
Average Tenure
52yo
Average Age
Experienced Management: OVV's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 6.83yrs | US$12.57m | 0.034% $431.4k | |
| Independent Director | 9.92yrs | US$235.38k | 0.0026% $33.1k | |
| Independent Director | 10.17yrs | US$225.27k | 0.0077% $96.6k | |
| Independent Director | 9.92yrs | US$245.38k | 0.040% $507.1k | |
| Independent Director | 1.17yrs | US$218.59k | 0.060% $751.1k | |
| Independent Director | 7.17yrs | US$225.38k | 0.0066% $83.1k | |
| Independent Chairman of the Board | 6.75yrs | US$400.38k | 0.030% $376.1k | |
| Independent Director | 5.33yrs | US$225.38k | 0.0047% $58.7k | |
| Independent Director | 10.25yrs | US$240.38k | 0.0032% $40.3k | |
| Independent Director | 5.83yrs | US$235.38k | 0.0093% $117.0k |
7.0yrs
Average Tenure
66yo
Average Age
Experienced Board: OVV's board of directors are considered experienced (7 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 been diluted in the past year, with total shares outstanding growing by 36%.
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$1.255b
- Shares outstanding: 259.82m
- 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 |
| PCD1 | 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 in west Texas and Anadarko in west-central Oklahoma; and Montney in northeast British Columbia and northwest Alberta. Its other upstream assets comprise Eagle Ford in south Texas, Bakken in North Dakota, and Uinta in central Utah; and Duvernay in west central Alberta, Wheatland in southern Alberta, Horn River in northeast British Columbia, and Deep Panuke in offshore Nova Scotia. The company was formerly known as Encana Corporation and changed its name to Ovintiv Inc. in January 2020. Ovintiv Inc. is based in Denver, Colorado.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/04 02:59 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| 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.