Ovintiv Net Income vs. Return On Equity
| OVV Stock | USD 44.88 1.23 2.67% |
Net Income | First Reported 2001-09-30 | Previous Quarter 307 M | Current Value 148 M | Quarterly Volatility 985.7 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.62 | 0.63 |
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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.
Ovintiv's Revenue Breakdown by Earning Segment
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Ovintiv Revenue Breakdown by Earning Segment
By analyzing Ovintiv's earnings estimates, investors can diagnose different trends across Ovintiv's analyst sentiment over time as well as compare current estimates against different timeframes.
What growth prospects exist in Oil & Gas Exploration & Production sector? Can Ovintiv capture new markets? Factors like these will boost the valuation of Ovintiv. Anticipated expansion of Ovintiv directly elevates investor willingness to pay premium valuations. Valuation analysis balances hard financial data with qualitative growth assessments. While each Ovintiv valuation metric matters, prioritizing which indicators carry greater predictive weight remains essential.
Quarterly Earnings Growth (0.70) | Dividend Share 1.2 | Earnings Share 0.93 | Revenue Per Share | Quarterly Revenue Growth (0.07) |
Understanding Ovintiv requires distinguishing between market price and book value, where the latter reflects Ovintiv's accounting equity. The concept of intrinsic value - what Ovintiv's is actually worth based on fundamentals - guides informed investors toward better entry and exit points. Investment professionals apply varied valuation frameworks to compute inherent worth and acquire positions when market prices trade at discounts to calculated value. Market sentiment, economic cycles, and investor behavior can push Ovintiv's price substantially above or below its fundamental value.
It's important to distinguish between Ovintiv's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Ovintiv should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. In contrast, Ovintiv's trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.
Ovintiv Return On Equity vs. Net Income 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 net income category among its peers. It is rated below average in return on equity category among its peers . The ratio of Net Income to Return On Equity for Ovintiv is about 49,778,761,062 . At this time, Ovintiv's Net Income is fairly stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Ovintiv by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Ovintiv Return On Equity vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Ovintiv |
| = | 1.12 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Ovintiv |
| = | 0.0226 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Ovintiv Return On Equity Comparison
Ovintiv is currently under evaluation in return on equity 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 893.5 M | 886.6 M | |
| Operating Income | 1.4 B | 1.8 B | |
| Income Before Tax | 1.2 B | 1.1 B | |
| Total Other Income Expense Net | -205.2 M | -215.5 M | |
| Net Income | 1 B | 869.1 M | |
| Income Tax Expense | 203.4 M | 208.5 M | |
| Net Income Applicable To Common Shares | 1.3 B | 1.4 B | |
| Interest Income | 347.4 M | 336.2 M | |
| Net Income From Continuing Ops | 1.3 B | 1.4 B | |
| Net Interest Income | -473.8 M | -497.5 M | |
| Non Operating Income Net Other | 69 M | 53.9 M | |
| Change To Netincome | -592.2 M | -562.6 M | |
| Net Income Per Share | 4.89 | 7.96 | |
| Income Quality | 3.80 | 3.61 | |
| Net Income Per E B T | 0.96 | 1.01 |
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.
Ovintiv Earnings per Share Projection vs Actual
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.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?
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Additional Tools for Ovintiv Stock Analysis
When running Ovintiv's price analysis, check to measure Ovintiv's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ovintiv is operating at the current time. Most of Ovintiv's value examination focuses on studying past and present price action to predict the probability of Ovintiv's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ovintiv's price. Additionally, you may evaluate how the addition of Ovintiv to your portfolios can decrease your overall portfolio volatility.