Crude Petroleum & Natural Gas
Ovintiv Inc., together with its subsidiaries, explores, develops, produces, and markets natural gas, oil, and natural gas liquids in the United States and Canada. 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 northwest 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.
Discounted Cash Flow Valuation of Ovintiv Inc.
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
The average Net Margin over the past 5 years is -2.42%.
The trend of Net Margin over the past 5 years is -1.59%.
The average ROA over the past 5 years is +2.58%.
The trend of ROA over the past 5 years is +3.71%.
The average ROE over the past 5 years is -9.11%.
The trend of ROE over the past 5 years is +1.56%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
The Debt/FCF trailing twelve month is 5.57.
The trend of Debt/FCF over the past 5 years is -4.58.
Graham’s Stability measure stands at -8.59.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
The Revenue CAGR over the past 5 years is +22.91%.
The trend of Revenue growth rate over the past 5 years is +4.96%.
The Earnings CAGR over the past 5 years is +34.48%.
The trend of Earnings growth rate over the past 5 years is +42.61%.
The Equity CAGR over the past 5 years is +2.71%.
The trend of Equity growth rate over the past 5 years is +8.06%.
The FCF CAGR over the past 5 years is -.
The trend of FCF growth rate over the past 5 years is +106.56%.