Ovintiv Inc (OVV, Financial), an independent oil and gas producer, has seen a significant surge in its stock price over the past three months. The company's stock price has risen by 22.92%, from a significantly undervalued position three months ago to a fairly valued position today, according to the GF Value. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. Despite a slight dip of 4.27% over the past week, the stock's current price stands at $47.31, with a market cap of $12.91 billion.
Unpacking Ovintiv Inc's Business Model
Ovintiv Inc operates in the oil and gas industry, with key assets in the Permian, Eagle Ford, Montney, and Duvernay areas. The company reported net proven reserves of 1,348 million barrels of oil equivalent at the end of 2019. In 2020, net production averaged 543 thousand barrels of oil equivalent per day, with a ratio of 53% oil and natural gas liquids and 47% natural gas. 
Profitability Analysis
Ovintiv Inc's profitability rank stands at 7 out of 10, indicating a strong level of profitability relative to other companies in the industry. The company's operating margin of 31.74% is better than 77.09% of companies in the industry. Furthermore, the company's ROE of 44.86%, ROA of 21.17%, and ROIC of 24.20% are all better than the majority of companies in the industry. Over the past 10 years, the company has been profitable for 7 years, which is better than 68.21% of companies. 
Growth Prospects
The company's growth rank is 5 out of 10, indicating moderate growth. The company's 3-year and 5-year revenue growth rates per share are 23.30% and 11.50% respectively, which are better than the majority of companies in the industry. The company's future 3-year to 5-year total revenue growth rate estimate is 11.92%. Furthermore, the company's 3-year EPS without NRI growth rate is 150.10%, which is better than 95.52% of companies. 
Major Stock Holders
The top three holders of Ovintiv Inc's stock are Dodge & Cox, holding 10.72% of shares, HOTCHKIS & WILEY, holding 2.25% of shares, and Smead Value Fund (Trades, Portfolio), holding 1.73% of shares.
Competitive Landscape
Ovintiv Inc's main competitors in the oil and gas industry are APA Corp with a market cap of $11.94 billion, Chesapeake Energy Corp with a market cap of $11.73 billion, and Texas Pacific Land Corp with a market cap of $13.73 billion.
Conclusion
In conclusion, Ovintiv Inc's stock has seen a significant surge over the past three months, driven by strong profitability and growth prospects. The company's strong operating margin, ROE, ROA, and ROIC, coupled with its impressive growth rates, make it a compelling investment opportunity. However, investors should also consider the competitive landscape and the company's major stock holders when making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
