Ovintiv Inc.
Ovintiv Inc. Fundamental Analysis
Ovintiv Inc. (OVV) shows weak financial fundamentals with a PE ratio of 55.51, profit margin of 2.65%, and ROE of 2.30%. The company generates $8.7B in annual revenue with weak year-over-year growth of -15.91%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 12.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze OVV's fundamental strength across five key dimensions:
Efficiency Score
WeakOVV struggles to generate sufficient returns from assets.
Valuation Score
ModerateOVV shows balanced valuation metrics.
Growth Score
WeakOVV faces weak or negative growth trends.
Financial Health Score
ModerateOVV shows balanced financial health with some risks.
Profitability Score
ModerateOVV maintains healthy but balanced margins.
Key Financial Metrics
Is OVV Expensive or Cheap?
P/E Ratio
OVV trades at 55.51 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, OVV's PEG of -0.94 indicates potential undervaluation.
Price to Book
The market values Ovintiv Inc. at 1.28 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.21 times EBITDA. This is generally considered low.
How Well Does OVV Make Money?
Net Profit Margin
For every $100 in sales, Ovintiv Inc. keeps $2.65 as profit after all expenses.
Operating Margin
Core operations generate 7.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.30 in profit for every $100 of shareholder equity.
ROA
Ovintiv Inc. generates $1.22 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ovintiv Inc. generates strong operating cash flow of $3.63B, reflecting robust business health.
Free Cash Flow
Ovintiv Inc. generates strong free cash flow of $1.45B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.72 in free cash annually.
FCF Yield
OVV converts 11.65% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
55.51
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.94
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.44
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.63
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.45
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How OVV Stacks Against Its Sector Peers
| Metric | OVV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 55.51 | 20.19 | Worse (Expensive) |
| ROE | 2.30% | 1019.00% | Weak |
| Net Margin | 2.65% | -44017.00% (disorted) | Weak |
| Debt/Equity | 0.63 | -0.65 (disorted) | Distorted |
| Current Ratio | 0.45 | 4.60 | Weak Liquidity |
| ROA | 1.22% | -11655350.00% (disorted) | Weak |
OVV outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ovintiv Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
34.32%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
374.59%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
25.75%
Industry Style: Cyclical, Value, Commodity
High Growth