NYSE
OVV
Last Price
US $51.98
KEY FIGURES
MKT CAP
$14.9B
EPS
TTM
$2.87
PEG
TTM
0.57x
P/E
TTM
17.21x
P/S
TTM
1.71x
YIELD
2.26%
GROWTH
Revenue Y/Y
7.49%
(FY vs FY)
EBITDA Y/Y
Cash Flow (DCF)
Fair Value
Market $51.98
30.51%
Default assumptions
EBITDA Multiple
Fair Value
Market $51.98
8.48%
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 risk - Healthy debt to equity ratio.
Ovintiv Inc.'s debt to equity ratio is 0.67, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
Ovintiv Inc.'s debt has increased relative to shareholder equity from 0.61 last year to 0.67 today, signaling weakened 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 risk - ICR.
Ovintiv Inc.'s interest coverage ratio is 1.16, which means that the company struggles to meet interest obligations, signaling financial risk.
Financial risk - Profit margin growth.
Ovintiv Inc.'s profit margin has decreased (-29.86%) in the last year from 12.29% to 8.62%, 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 3.46% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
Ovintiv Inc.'s return on equity of 7.11%, 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 10.07%, 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
Decreasing performance - ROIC.
ROIC 2.20% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. 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 5.40%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Undervalued - EBITDA valuation.
Ovintiv Inc. is undervalued 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 8.30x, 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 1.23x, 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 1.67x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
7.11%
Return on equity
ROIC: 2.20%
Valuation History
17.2X
Price to Earnings
EV/EBITDA: 8.3X
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.