company background image
OVV

OvintivTSX:OVV Stock Report

Market Cap

CA$11.6b

7D

-14.0%

1Y

145.0%

Updated

02 Dec, 2021

Data

Company Financials +
OVV fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance0/6
Financial Health2/6
Dividends2/6

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.

Ovintiv Competitors

Canadian Natural Resources

TSX:CNQ

CA$61.5b

Crescent Point Energy

TSX:CPG

CA$3.2b

MEG Energy

TSX:MEG

CA$3.2b

Enerplus

TSX:ERF

CA$3.1b

Price History & Performance

Summary of all time highs, changes and price drops for Ovintiv
Historical stock prices
Current Share PriceCA$42.07
52 Week HighCA$50.27
52 Week LowCA$16.42
Beta4.4
1 Month Change-11.26%
3 Month Change18.01%
1 Year Change145.02%
3 Year Change-8.04%
5 Year Change-48.82%
Change since IPO17.06%

Recent News & Updates

Oct 01
Ovintiv (TSE:OVV) Has A Somewhat Strained Balance Sheet

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

OVVCA Oil and GasCA Market
7D-14.0%-7.5%-4.8%
1Y145.0%44.6%19.0%

Return vs Industry: OVV exceeded the Canadian Oil and Gas industry which returned 44.6% over the past year.

Return vs Market: OVV exceeded the Canadian Market which returned 19% over the past year.

Price Volatility

Is OVV's price volatile compared to industry and market?
OVV volatility
OVV Average Weekly Movement6.8%
Oil and Gas Industry Average Movement9.9%
Market Average Movement9.4%
10% most volatile stocks in CA Market17.2%
10% least volatile stocks in CA Market3.6%

Stable Share Price: OVV is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: OVV's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20201,916Brendan McCrackenhttps://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

How do Ovintiv's earnings and revenue compare to its market cap?
OVV fundamental statistics
Market CapUS$9.08b
Earnings (TTM)-US$582.00m
Revenue (TTM)US$9.03b

1.0x

P/S Ratio

-14.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OVV income statement (TTM)
RevenueUS$9.03b
Cost of RevenueUS$4.76b
Gross ProfitUS$4.27b
ExpensesUS$4.85b
Earnings-US$582.00m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-2.23
Gross Margin47.31%
Net Profit Margin-6.44%
Debt/Equity Ratio126.2%

How did OVV perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

-19%

Payout Ratio

Does OVV pay a reliable dividends?

See OVV dividend history and benchmarks
When do you need to buy OVV by to receive an upcoming dividend?
Ovintiv dividend dates
Ex Dividend DateDec 14 2021
Dividend Pay DateDec 31 2021
Days until Ex dividend12 days
Days until Dividend pay date29 days

Does OVV pay a reliable dividends?

See OVV dividend history and benchmarks

Valuation

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$42.07) is trading below our estimate of fair value (CA$144.05)

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 (2.3x) compared to the CA Oil and Gas industry average (1.8x).


Future Growth

How is Ovintiv forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

38.1%

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 (3.3% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: OVV's revenue (3.3% 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 (34.9%)


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 (112.8%).


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?

1.70%

Current Dividend Yield


Upcoming Dividend Payment

TodayDec 02 2021Ex Dividend DateDec 14 2021Dividend Pay DateDec 31 202117 days from Ex DividendBuy in the next 12 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: OVV's dividend (1.7%) is higher than the bottom 25% of dividend payers in the Canadian market (1.63%).

High Dividend: OVV's dividend (1.7%) is low compared to the top 25% of dividend payers in the Canadian market (4.74%).


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 (8.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Brendan McCracken (45 yo)

0.25

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 ($USD2.00M) is below average for companies of similar size in the Canadian market ($USD3.52M).

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 not considered experienced ( 2.8 years average tenure), which suggests a new board.


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
  • Market Cap: CA$11.584b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/02 00:01
End of Day Share Price2021/12/01 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.