Ovintiv, Inc. (OVV) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

EQT Corp.

Ovintiv, Inc.

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Marathon Oil Corp.

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Diamondback Energy, Inc.

Occidental Petroleum Corp.

Why is Ovintiv, Inc. ?

High Management Efficiency with a high ROCE of 24.05%

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 7.63% and Operating profit at 102.28%

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 %

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%

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 Report

Verdict Report

How much should you hold?

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.

39.8%

-0.37

44.95%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.85%

EBIT Growth (5y)

65.29%

EBIT to Interest (avg)

8.40

Debt to EBITDA (avg)

1.46

Net Debt to Equity (avg)

0.56

Sales to Capital Employed (avg)

0.63

Tax Ratio

13.97%

Dividend Payout Ratio

28.52%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

24.05%

ROE (avg)

25.39%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.52

EV to EBIT

10.66

EV to EBITDA

5.00

EV to Capital Employed

1.34

EV to Sales

2.35

PEG Ratio

Dividend Yield

0.07%

ROCE (Latest)

12.58%

ROE (Latest)

15.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 52.32%

RAW MATERIAL COST(Y)

Fallen by -4.15% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 62.58 %

-9What is not working for the Company

ROCE(HY)

Lowest at 2.26%

NET PROFIT(Q)

At USD 272.88 MM has Fallen at -34.01%

NET SALES(Q)

Lowest at USD 2,040 MM

OPERATING PROFIT(Q)

Lowest at USD 941 MM

Here's what is working for Ovintiv, Inc.

Debt-Equity Ratio

Lowest at 62.58 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend Payout Ratio

Highest at 52.32%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -4.15% (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

Here's what is not working for Ovintiv, Inc.

Net Profit

At USD 272.88 MM has Fallen at -34.01%

over average net sales of the previous four periods of USD 413.5 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Net Sales

Lowest at USD 2,040 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Net Sales

At USD 2,040 MM has Fallen at -9.73%

over average net sales of the previous four periods of USD 2,260 MM

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD 941 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)