Ovintiv (OVV) AI Stock Analysis

• Market Cap: $9.63B
• Dividend Yield: 3.21%
• Average Volume (3M): 3.96M
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.94
• Revenue Growth: -14.46%
• EPS Growth: -67.20%
• Country: US
• Employees: 1,623
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.42
• Shares Outstanding: 259,815,000
• 10 Day Avg. Volume: 4,016,428
• 30 Day Avg. Volume: 3,964,897
• PEG Ratio: -0.19
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.64
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 4.00
• Enterprise Value/Ebitda: 0.82
• 1Y Price Target: $50.82
• Price Target Upside: 37.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

Ovintiv shows strong financial health with robust cash flow generation and operational efficiency. The technical analysis supports a positive outlook, while the earnings call reinforces strong performance despite macroeconomic challenges. Valuation is fair but not outstanding, with good dividend yield. Overall, Ovintiv is well-positioned but faces risks related to commodity price volatility.

Positive Factors

Financial Performance

The attractive free cash flow yield of 11% indicates a strong financial position for the company.

Operational Efficiency

Ovintiv's enhanced Permian position is underappreciated given current stock valuation, with operational efficiencies lowering well costs and improving well productivity.

Portfolio Strategy

Ovintiv’s portfolio is more focused now than any time in its history, with core positions in the Midland and Montney, both generating attractive returns and strong operational performance.

Negative Factors

Asset Impairment

OVV expects a non-cash impairment related to its Canadian assets, impacting financial results.

Financial Guidance

The 2Q25 guidance was slightly below Street expectations.

Production Concerns

A decline in Anadarko production is expected due to the lack of activity in the second half of the previous year.

Ovintiv Business Overview & Revenue Model

Company Description

Ovintiv Inc., together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas, oil, and natural gas liquids. It operates through USA Operations, Canadian Operations, and Market Optimization segments. The company's principal assets include Permian in west Texas and Anadarko in west-central Oklahoma; and Montney in northeast British Columbia and northwest Alberta. Its other upstream assets comprise Bakken in North Dakota, and Uinta in central Utah; and Horn River in northeast British Columbia, and Wheatland in southern Alberta. The company was formerly known as Encana Corporation and changed its name to Ovintiv Inc. in January 2020. Ovintiv Inc. was incorporated in 2020 and is based in Denver, Colorado.

How the Company Makes Money

Ovintiv makes money through the exploration, extraction, and sale of oil, natural gas, and NGLs. The company's revenue comes from the production and sale of these commodities, which are extracted from its significant holdings in resource-rich areas such as the Permian Basin, Montney, and Anadarko Basin. Ovintiv's revenue streams are influenced by global commodity prices, production volumes, and the successful implementation of cost-effective extraction and production techniques. Additionally, Ovintiv benefits from strategic partnerships and joint ventures that enhance its operational capabilities and market reach, thereby contributing to its overall earnings.

Ovintiv Financial Statement Overview

Summary

Ovintiv shows mixed financial performance. The income statement indicates improved cost efficiency, but revenue and net income have declined. The balance sheet shows reduced leverage and stable equity, but profitability has weakened. The absence of 2024 cash flow data limits a comprehensive assessment, but prior trends suggest a need for improved cash management and profitability enhancement.

Income Statement

Ovintiv shows a decline in total revenue over the past year, with a decrease from $10.66B in 2023 to $9.15B in 2024. The gross profit margin increased significantly from 46.58% in 2023 to 89.81% in 2024, indicating improved cost management. However, net income dropped, leading to a decrease in net profit margin from 19.56% in 2023 to 12.29% in 2024. EBIT and EBITDA margins also decreased, suggesting pressure on operational efficiency.

Balance Sheet

The debt-to-equity ratio improved from 0.64 in 2023 to a much more favorable position in 2024, as the company reduced its debt to zero. Return on equity decreased from 20.10% in 2023 to 10.89% in 2024, reflecting lower profitability. The equity ratio was 51.89% in 2023, indicating a stable equity position but was not calculable for 2024 due to missing asset data.

Cash Flow

Cash flow data for 2024 is missing, making it challenging to fully evaluate current performance. In 2023, Ovintiv had a free cash flow of $1.42B, down from $2.03B in 2022, indicating a decline in cash available after capital expenditures. The free cash flow to net income ratio was 0.68 in 2023, showing a moderate conversion of income to free cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
9.15B	10.66B	12.46B	8.66B	6.09B
	Gross Profit
4.98B	4.96B	7.30B	4.22B	2.71B
	EBIT
1.58B	2.86B	3.85B	1.52B	609.00M
	EBITDA
4.07B	4.71B	5.00B	2.79B	-3.50B
	Net Income Common Stockholders
1.13B	2.08B	3.64B	1.42B	-6.10B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
42.00M	3.00M	5.00M	195.00M	10.00M
	Total Assets
19.25B	19.99B	15.06B	14.05B	14.47B
	Total Debt
6.29B	6.68B	4.49B	5.78B	8.01B
	Net Debt
6.25B	6.68B	4.49B	5.58B	8.00B
	Total Liabilities
8.92B	9.62B	7.37B	8.98B	10.63B
	Stockholders Equity
10.33B	10.37B	7.69B	5.07B	3.84B
Cash Flow		Free Cash Flow
1.42B	1.42B	2.04B	1.61B	159.00M
	Operating Cash Flow
3.72B	4.17B	3.87B	3.13B	1.90B
	Investing Cash Flow
-2.46B	-5.52B	-1.79B	-525.00M	-1.86B
	Financing Cash Flow
-1.23B	1.36B	-2.27B	-2.42B	-206.00M

Ovintiv Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 37.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OVV, the sentiment is Neutral. The current price of 37.07 is above the 20-day moving average (MA) of 35.61, below the 50-day MA of 37.24, and below the 200-day MA of 40.36, indicating a neutral trend. The MACD of 0.40 indicates Negative momentum. The RSI at 52.84 is Neutral, neither overbought nor oversold. The STOCH value of 63.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OVV.

Ovintiv Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PR	78 Outperform	$10.66B	8.34	14.35%	3.11%	37.00%	44.18%
OVV	78 Outperform	$9.63B	15.90	6.17%	3.21%	-14.46%	-67.20%
MUR	75 Outperform	$3.09B	8.47	7.54%	5.55%	-14.90%	-27.53%
PAA	72 Outperform	$12.13B	18.56	9.43%	7.72%	3.40%	-20.48%
NFG	70 Outperform	$7.35B	185.01	1.30%	2.54%	7.14%	-90.91%
AR	67 Neutral	$12.36B	54.96	3.21%	―	6.67%	240.70%
Sector *	57 Neutral	$7.13B	3.45	-3.67%	5.68%	0.46%	-50.35%

Ovintiv Corporate Events

Ovintiv Reports Q1 Loss Amidst Strategic Moves

On May 6, 2025, Ovintiv announced its first quarter financial results, highlighting a net loss of $159 million due to a non-cash ceiling test impairment, but also reported strong cash flow and production figures. The company completed a significant acquisition and divestiture, resumed share buybacks, and declared a quarterly dividend, emphasizing its commitment to shareholder returns and financial stability. Ovintiv also released its 2024 Sustainability Report, showcasing substantial reductions in greenhouse gas emissions and methane intensity, along with social and governance achievements.

Spark’s Take on OVV Stock

According to Spark, TipRanks’ AI Analyst, OVV is a Neutral.

Ovintiv’s overall score of 62 reflects mixed financial performance with declining revenues but improved cost management. The stock faces bearish technical indicators but is attractively valued. Positive earnings call guidance and strategic asset management support potential future growth amidst current challenges.

To see Spark’s full report on OVV stock, click here.

Ovintiv Shareholders Approve Key Governance Decisions

On May 1, 2025, Ovintiv Inc. held its annual shareholder meeting where several key decisions were made. Shareholders approved the Third Amendment to the Omnibus Incentive Plan, elected directors, and ratified PricewaterhouseCoopers LLP as independent auditors. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder relations.

Spark’s Take on OVV Stock

According to Spark, TipRanks’ AI Analyst, OVV is a Neutral.

Ovintiv’s overall score of 62 reflects mixed financial performance with declining revenues but improved cost management. The stock faces bearish technical indicators but is attractively valued. Positive earnings call guidance and strategic asset management support potential future growth amidst current challenges.

To see Spark’s full report on OVV stock, click here.

Ovintiv Announces Board Member Departure in 2025

On February 19, 2025, Suzanne P. Nimocks informed Ovintiv Inc. that she will not seek re-election to the Board of Directors at the 2025 Annual Meeting of Shareholders. Her decision was not due to any disagreements with the company’s operations or policies. The Board plans to reduce the number of directors to eleven following her departure, and the company expressed gratitude for her service.