ScoreWhy is Ovintiv, Inc. ?
1
High Management Efficiency with a high ROCE of 24.05%
2
Company has a low Debt to Equity ratio (avg) at times
3
Healthy long term growth as Net Sales has grown by an annual rate of 7.63% and Operating profit at 102.28%
4
Flat results in Jun 25
- ROCE(HY) Lowest at 5.75%
- RAW MATERIAL COST(Y) Grown by 10.67% (YoY)
- OPERATING PROFIT MARGIN(Q) Lowest at 44.68 %
5
With ROCE of 12.76%, it has a expensive valuation with a 0.99 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -4.17%, its profits have fallen by -9%
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -4.17% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Ovintiv, Inc. should be less than 10%
- Overall Portfolio exposure to Oil should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Ovintiv, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Ovintiv, Inc.
41.02%
-0.37
44.95%
S&P 500
22.24%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.42%
EBIT Growth (5y)
58.83%
EBIT to Interest (avg)
8.40
Debt to EBITDA (avg)
1.46
Net Debt to Equity (avg)
0.56
Sales to Capital Employed (avg)
0.60
Tax Ratio
13.97%
Dividend Payout Ratio
25.09%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
24.05%
ROE (avg)
25.39%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
1.57
EV to EBIT
11.93
EV to EBITDA
5.51
EV to Capital Employed
1.39
EV to Sales
2.59
PEG Ratio
0.37
Dividend Yield
0.06%
ROCE (Latest)
11.69%
ROE (Latest)
17.98%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend19What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 1,309.62
NET PROFIT(Q)
At USD 908 MM has Grown at 80.41%
RAW MATERIAL COST(Y)
Fallen by -8.77% (YoY
NET SALES(Q)
Highest at USD 2,595 MM
OPERATING PROFIT(Q)
Highest at USD 1,362 MM
OPERATING PROFIT MARGIN(Q)
Highest at 52.49 %
PRE-TAX PROFIT(Q)
Highest at USD 711 MM
-7What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.34 times
INTEREST(Q)
Highest at USD 104 MM
EPS(Q)
Lowest at USD -2.35
Here's what is working for Ovintiv, Inc.
Interest Coverage Ratio
Highest at 1,309.62
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Pre-Tax Profit
At USD 711 MM has Grown at 82.78%
over average net sales of the previous four periods of USD 389 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 908 MM has Grown at 80.41%
over average net sales of the previous four periods of USD 503.31 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Net Sales
Highest at USD 2,595 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Net Sales
At USD 2,595 MM has Grown at 18.6%
over average net sales of the previous four periods of USD 2,188 MMMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 1,362 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 52.49 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 711 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Raw Material Cost
Fallen by -8.77% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 568 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Ovintiv, Inc.
Interest
At USD 104 MM has Grown at 11.83%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest
Highest at USD 104 MM
in the last five periods and Increased by 11.83% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
EPS
Lowest at USD -2.35
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Debtors Turnover Ratio
Lowest at 6.34 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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