Ovintiv's Profit Margin Drops to 6.6%, Raising Questions About Premium Valuation.

Ovintiv's (OVV) profit margin has dropped to 6.6%, down from 18.8% last year, due to a $1.2 billion loss in the past year. Despite strong earnings growth projections of 39.8%, revenue is only forecast to rise 2.8% per year, trailing the market average. Analysts expect profit margins to rebound to 27.0% within three years, driven by disciplined capital allocation and operational gains. However, Ovintiv's premium valuation of 15.6x P/E ratio, above its peer group and the broader US oil and gas industry, raises questions about the company's quality and stability.