Is OVV a high-quality business?

AlphaMadera's AlphaQuality grade scores Ovintiv Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how OVV compares to a Buffett-style quality bar.

What is Ovintiv Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to OVV based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes OVV a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

OVV - Ovintiv Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $64.13 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Oil & Gas E&P

AlphaQuality — archetype-weighted quantitative grade

C+ 59.8 / 100 composite

Composite Grade

Composite of six pillars weighted for oil & gas e&p businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

C+ 58.6

5yr Avg ROIC 12.0% 70/100
Operating Margin Trend -0.55 pp/yr 32/100

Capital Efficiency

Weight: 10%

A- 81.2

5yr Avg ROE 17.0% 85/100
5yr Share-Count CAGR -0.6% 75/100

Growth Quality

Weight: 5%

F 23.0

5yr Revenue CAGR 0.2% 22/100
5yr EPS CAGR -2.6% 15/100
Revenue-Growth Years (5) 2/5 40/100

Cash Generation

Weight: 25%

A 89.8

5yr FCF Margin 16.1% 84/100
5yr FCF/NI Conversion 0.97x 97/100

Balance Sheet

Weight: 25%

C- 50.2

Net Debt / EBITDA 2.16x 67/100
Interest Coverage (EBIT/Int) 3.05x 45/100
Altman Z-Score 1.44 26/100

Stability

Weight: 20%

D 34.6

EPS Volatility (σ/μ) 0.65 18/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 3/5 40/100

4 of 4 gurus held; 2 added; 2 trimmed.

Holders: 4
Avg Δ position: +110.3%
New buys: 0
Full exits: 0

Wood increased +469%
Dalio decreased -70%
Greenblatt increased +55%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (10%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (5%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (25%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.