Ovintiv Price To Book vs. Return On Asset

OVV Stock  CAD 57.68  1.09  1.85%   
Based on Ovintiv's profitability indicators, Ovintiv is yielding more profit at this time then in previous quarter. It has a moderate risk of reporting better profitability numbers in January. Profitability indicators assess Ovintiv's ability to earn profits and add value for shareholders. At this time, Ovintiv's Price To Sales Ratio is very stable compared to the past year. As of the 15th of December 2024, EV To Sales is likely to grow to 1.84, while Days Sales Outstanding is likely to drop 42.77. At this time, Ovintiv's Net Income Per Share is very stable compared to the past year. As of the 15th of December 2024, Net Income Per E B T is likely to grow to 0.87, while Accumulated Other Comprehensive Income is likely to drop about 888 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.430.4657
Significantly Down
Pretty Stable
For Ovintiv profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ovintiv to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ovintiv utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ovintiv's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ovintiv over time as well as its relative position and ranking within its peers.
  
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To learn how to invest in Ovintiv Stock, please use our How to Invest in Ovintiv guide.
Please note, there is a significant difference between Ovintiv's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ovintiv is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ovintiv's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Ovintiv Return On Asset vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Ovintiv's current stock value. Our valuation model uses many indicators to compare Ovintiv value to that of its competitors to determine the firm's financial worth.
Ovintiv is regarded second in price to book category among its peers. It is considered to be number one stock in return on asset category among its peers reporting about  0.09  of Return On Asset per Price To Book. The ratio of Price To Book to Return On Asset for Ovintiv is roughly  11.42 . As of the 15th of December 2024, Return On Assets is likely to grow to 0.11. Comparative valuation analysis is a catch-all model that can be used if you cannot value Ovintiv by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Ovintiv's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Ovintiv Return On Asset vs. Price To Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Ovintiv

P/B

 = 

MV Per Share

BV Per Share

 = 
0.99 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Ovintiv

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0868
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Ovintiv Return On Asset Comparison

Ovintiv is currently under evaluation in return on asset category among its peers.

Ovintiv Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Ovintiv, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ovintiv will eventually generate negative long term returns. The profitability progress is the general direction of Ovintiv's change in net profit over the period of time. It can combine multiple indicators of Ovintiv, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income1.1 B888 M
Operating Income2.9 B2.1 B
Income Before Tax2.5 B2.6 B
Total Other Income Expense Net-92 M-96.6 M
Net Income2.1 B2.2 B
Income Tax Expense425 M446.2 M
Interest Income228.6 M345.3 M
Net Income From Continuing Ops2.1 B2.2 B
Net Income Applicable To Common Shares4.2 B4.4 B
Net Interest Income-355 M-372.8 M
Change To Netincome-592.2 M-562.6 M
Net Income Per Share 8.02  8.11 
Income Quality 2.00  1.90 
Net Income Per E B T 0.83  0.87 

Ovintiv Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Ovintiv. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Ovintiv position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Ovintiv's important profitability drivers and their relationship over time.

Use Ovintiv in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Ovintiv position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ovintiv will appreciate offsetting losses from the drop in the long position's value.

Ovintiv Pair Trading

Ovintiv Pair Trading Analysis

The ability to find closely correlated positions to Ovintiv could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ovintiv when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Ovintiv - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Ovintiv to buy it.
The correlation of Ovintiv is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Ovintiv moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ovintiv moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Ovintiv can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Ovintiv position

In addition to having Ovintiv in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Obamacare Repeal Thematic Idea Now

Obamacare Repeal
Obamacare Repeal Theme
Healthcare and drug manufacturing companies that will most likely be affected by the final stages of Obamacare repeal. The Obamacare Repeal theme has 56 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Obamacare Repeal Theme or any other thematic opportunities.
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When determining whether Ovintiv is a strong investment it is important to analyze Ovintiv's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Ovintiv's future performance. For an informed investment choice regarding Ovintiv Stock, refer to the following important reports:
Check out Your Equity Center.
To learn how to invest in Ovintiv Stock, please use our How to Invest in Ovintiv guide.
You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
To fully project Ovintiv's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Ovintiv at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Ovintiv's income statement, its balance sheet, and the statement of cash flows.
Potential Ovintiv investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Ovintiv investors may work on each financial statement separately, they are all related. The changes in Ovintiv's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Ovintiv's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.