Encana Stock Analysis, Valuation (NYSE:ECA)

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$12.15 $0.55 (4.33%) ECA stock closing price Jun 15, 2018 (Closing)

Take a look at Amigobulls Encana stock analysis video. This is our analyst opinion covering the buy and sell arguments for ECA stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Encana Corp (USA) Stock Rating 3/5

Amigobulls ECA stock analysis takes into account various financial ratios like relative valuation, Encana revenue, growth and return on equity based on latest quarter 2018 Q1 financial statements. We also check Encana dividend performance. Encana valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Our Encana stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy ECA stock?

  • Revenue growth has been tremendous with a compounded annual growth of 0.2 over the last 5 years.
  • Encana had a healthy average operating margin of 21.09 over the last 4 quarters.
  • Net margins came in at average 12.2% for Encana over the last twelve months.
  • The company has an operating cash flow which is 2.5232 times the net income. We see this as a positive signal.

Should you sell ECA stock?

  • Encana has a negative FCF (Free Cash Flow) margin of -9.7.

Comments on this video and Encana stock

Investors can make use of the Amigobulls Encana stock analysis to ascertain how ECA stock fares in fundamental analysis investment criteria. Company's fundamentals remain one of the key driver of ECA stock and helps investors in making good buy and sell decision.

Encana revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. One can also combine technical analysis and fundamental analysis to get a holistic picture about ECA stock.