Encana Stock Analysis, Valuation (NYSE:ECA)

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$12.57 $0.02 (0.16%) ECA stock closing price Aug 17, 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 2.5/5

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 Q2 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?

  • The TTM operating margin was good at 11.52 for Encana.
  • Net margins stood at a healthy 1.5% (average) for Encana in the Trailing Twelve Months.

Should you sell ECA stock?

  • Revenue declined at a CAGR of -5.1 over the last 5 years.
  • The company is trading at a price to sales multiple of 2.8, which is higher in comparison to the Oils-Energy sector average of 1.6, making ECA stock expensive.

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.