Encana Corporation [NYSE: ECA] shares went lower by -2.13% from its previous closing of $4.22, now trading at the price of $4.13, also adding -0.09 points. Is ECA stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 8.54 million contracts. Compared to the average trading volume of ECA shares, the company saw a far better performance. Moreover, the stock has a 1.29B float and a -6.67% run over in the last seven days. ECA share price has been hovering between $11.51 and $3.92 lately, and is definitely worthy of attention.
Encana Corporation [NYSE:ECA]: Analyst Rating and Earnings
Its stock price has been found in the range of 3.92 to 11.51. This is compared to its latest closing price of $4.22.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Thu 31 Oct (In 13 Days).
Fundamental Analysis of Encana Corporation [ECA]
Now let’s turn to look at profitability: with a current Operating Margin for Encana Corporation [ECA] sitting at +23.15 and its Gross Margin at +28.66, this company’s Net Margin is now 16.70%. These measurements indicate that Encana Corporation [ECA] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 9.80, and its Return on Invested Capital has reached 13.40%. Its Return on Equity is 14.90, and its Return on Assets is 6.91. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates ECA financial performance.
Turning to investigate this organization’s capital structure, Encana Corporation [ECA] has generated a Total Debt to Total Equity ratio of 76.77. Similarly, its Total Debt to Total Capital is 43.43, while its Total Debt to
What about valuation? This company’s Enterprise Value to EBITDA is 4.02 and its Total Debt to EBITDA Value is 2.33. The Enterprise Value to Sales for this firm is now 1.59, and its Total Debt to Enterprise Value stands at 0.59. Encana Corporation [ECA] has a Price to Book Ratio of 0.74, a Price to Cash Flow Ratio of 2.54 and P/E Ratio of 3.55. These metrics all suggest that Encana Corporation is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Encana Corporation [ECA] earns $3,467,275 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 4.79 and its Total Asset Turnover is 0.36. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.33 and its Current Ratio is 1.33. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Encana Corporation [ECA] has 1.38B shares outstanding, amounting to a total market cap of $5.83B. Its stock price has been found in the range of 3.92 to 11.51. At its current price, it has moved down by -64.12% from its 52-week high, and it has moved up 5.36% from its 52-week low.
This stock’s Beta value is currently 2.02, which indicates that it is 3.97% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 39.78. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Encana Corporation [ECA] a Reliable Buy?
Shares of Encana Corporation [ECA], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.