NYSE
OVV
Last Price
US $63.02
KEY FIGURES
MKT CAP
$17.4B
EPS
TTM
$3.29
PEG
TTM
0.31x
P/E
TTM
19.18x
P/S
TTM
1.83x
YIELD
1.90%
GROWTH
Revenue Y/Y
7.49%
(FY vs FY)
EBITDA Y/Y
Cash Flow (DCF)
Fair Value
Market $63.02
7.65%
Default assumptions
EBITDA Multiple
Fair Value
Market $63.02
-10.52%
Default assumptions
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Ovintiv Inc. cash flow to debt ratio of 48.51% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial stability - Healthy cash flow growth.
Ovintiv Inc.'s free cash flow has increased 6.14% from $1.42G last year to $1.50G, signaling increasing performance
Financial stability - Healthy debt to equity ratio.
Ovintiv Inc.'s debt to equity ratio is 0.43, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial stability - Healthy debt to equity ratio development.
Ovintiv Inc.'s debt has decreased relative to shareholder equity from 0.61 last year to 0.43 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
Ovintiv Inc. has a net debt to EBITDA ratio of 2.24x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Ovintiv Inc.'s interest coverage ratio of 2.39 indicates that earnings with margin can cover interest payments on company debt
Financial risk - Profit margin growth.
Ovintiv Inc.'s profit margin has decreased (-22.34%) in the last year from 12.29% to 9.55%, signaling decreasing performance
Financial risk - Short term assets vs short term liabilities.
Ovintiv Inc.'s short-term liabilities of $2.79G exceed its short-term assets of $1.52G, signaling financial risk
Decreasing performance - ROA.
Ovintiv Inc.'s return on assets of 4.77% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
Ovintiv Inc.'s return on equity of 8.27%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
Ovintiv Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Ovintiv Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Ovintiv Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Ovintiv Inc. has a free cash flow yield of 8.63%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Ovintiv Inc.'s yearly earnings has increased 10.40% since last year from $1.12G to $1.24G, signaling increasing performance
Decreasing performance - Healthy revenue growth.
Ovintiv Inc.'s yearly revenue has decreased -4.55% since last year from $9.15G to $8.74G, signaling decreasing performance
Increasing performance - ROIC.
ROIC 5.39% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Decreasing performance - 3-year revenue CAGR.
Ovintiv Inc.'s 3-year revenue CAGR of -11.17% is negative, indicating declining revenue over the past 3 years
Decreasing performance - Revenue consistency.
Ovintiv Inc. had revenue growth in only 2.00 out of 5 years, indicating inconsistent revenue performance
Increasing performance - ROE consistency.
Ovintiv Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Undervalued - DCF valuation.
Ovintiv Inc. is undervalued relative to its fair value price of 67.84 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Ovintiv Inc. has an earnings yield of 5.21%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Ovintiv Inc. is overvalued relative to its fair value price of 56.39 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Ovintiv Inc. has an EV/EBITDA ratio of 7.43x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Ovintiv Inc. has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
Ovintiv Inc. has a price-to-book ratio of 1.53x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Ovintiv Inc. has a price-to-sales ratio of 1.83x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
8.27%
Return on equity
ROIC: 5.39%
Valuation History
16.8X
Price to Earnings
EV/EBITDA: 7.6X
Cash flow
Profit margin
-
(FY vs FY)
Cash flow Y/Y
56.76%
(FY vs FY)
Base valuations use default assumptions. Customize in the Valuator.