We are initiating coverage on Ovintiv, an exploration & production firm focused on the Permian and Montney shale plays. Over the last few years, it has divested from noncore positions, completing the process earlier this year with the sale of its Anadarko assets.
Ovintiv’s gas transport portfolio in Canada is an advantage that will be difficult and expensive for competitors to replicate.
Ovintiv has earned its discount through a long period of high leverage and poor decisions. It also suffers from a dual basin discount, as investors who want exposure to the Permian or Montney have cleaner options.
|
Metric
|
OVV
|
WCP
|
OXY
|
|---|---|---|---|
Price/Earnings (Normalized) | 9.73 | 13.72 | 13.55 |
Price/Book Value | 1.44 | 1.88 | 1.73 |
Price/Sales | 1.63 | 2.63 | 2.69 |
Price/Cash Flow | 3.69 | 5.21 | 4.52 |
|
Metric
|
OVV
|
WCP
|
OXY
|
|---|---|---|---|
Quick Ratio | 0.92 | 0.49 | 1.04 |
Current Ratio | 1.01 | 0.56 | 1.41 |
Interest Coverage | 1.71 | 11.29 | 5.89 |
|
Metric
|
OVV
|
WCP
|
OXY
|
|---|---|---|---|
Return on Assets (Normalized) | 12.41% | 8.40% | 4.72% |
Return on Equity (Normalized) | 22.86% | 14.62% | 13.23% |
Return on Invested Capital (Normalized) | 16.15% | 12.11% | 7.57% |
|
1-Day Chart
|
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Price
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Morningstar Rating for Stocks
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United States