TSX:ECA

Stock Analysis Report

Executive Summary

Encana Corporation, together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas, oil, and natural gas liquids.

Snowflake

Fundamentals

Undervalued with solid track record.


Similar Companies

Share Price & News

How has Encana's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.3%

ECA

1.1%

CA Oil and Gas

0.9%

CA Market


1 Year Return

-60.0%

ECA

-11.4%

CA Oil and Gas

-0.2%

CA Market

ECA underperformed the Oil and Gas industry which returned -10.7% over the past year.

ECA underperformed the Market in Canada which returned -0.1% over the past year.


Share holder returns

ECAIndustryMarket
7 Day3.3%1.1%0.9%
30 Day18.7%11.6%5.7%
90 Day3.5%1.6%1.8%
1 Year-59.5%-60.0%-7.4%-11.4%3.3%-0.2%
3 Year-44.2%-45.5%-5.1%-14.8%19.2%8.5%
5 Year-70.4%-72.3%-24.1%-35.3%23.3%5.8%

Price Volatility Vs. Market

How volatile is Encana's share price compared to the market and industry in the last 5 years?


Simply Wall St News

3 weeks ago | Simply Wall St

Is Encana Corporation (TSE:ECA) Undervalued After Accounting For Its Future Growth?

Valuation

Is Encana undervalued based on future cash flows and its price relative to the stock market?

22%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Encana's share price is below the future cash flow value, and at a moderate discount (> 20%).

Encana's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Encana is good value based on earnings compared to the CA Oil and Gas industry average.

Encana is good value based on earnings compared to the Canada market.


Price Based on Expected Growth

Encana is good value based on expected growth next year.


Price Based on Value of Assets

Encana is good value based on assets compared to the CA Oil and Gas industry average.


Next Steps

Future Growth

How is Encana expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

18.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Encana's revenue is expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).

Encana's earnings are expected to grow by 18% yearly, however this is not considered high growth (20% yearly).

Encana's revenue growth is positive but not above the Canada market average.

Encana's earnings growth is expected to exceed the Canada market average.

Encana's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Encana is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Encana performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Encana's year on year earnings growth rate has been positive over the past 5 years.

Encana's 1-year earnings growth exceeds its 5-year average (1684.6% vs 9.9%)

Encana's earnings growth has exceeded the CA Oil and Gas industry average in the past year (1684.6% vs 62.2%).


Return on Equity

Encana has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Encana used its assets more efficiently than the CA Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Encana has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Encana's financial position?


Financial Position Analysis

Encana's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Encana's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Encana's level of debt (70.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (87.1% vs 70.4% today).

Debt is well covered by operating cash flow (40.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

What is Encana's current dividend yield, its reliability and sustainability?

1.59%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Encana's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (1.95%).

Encana's dividend is below the markets top 25% of dividend payers in Canada (5.78%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (15.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (12x coverage).


Next Steps

Management

What is the CEO of Encana's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Doug Suttles (58yo)

6.3yrs

Tenure

US$11,981,894

Compensation

Mr. Douglas James Suttles, also known as Doug, has been the Chief Executive Officer of Encana Corporation since June 10, 2013 and also served as its President. Mr. Suttles served as the President of Opera ...


CEO Compensation Analysis

Doug's remuneration is higher than average for companies of similar size in Canada.

Doug's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.8yrs

Average Tenure

57yo

Average Age

The average tenure for the Encana management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.4yrs

Average Tenure

65.5yo

Average Age

The tenure for the Encana board of directors is about average.


Insider Trading

More shares have been bought than sold by Encana individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$94,38305 Sep 19
Brian Shaw
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares16,000
Max PriceUS$5.91
BuyUS$54,06023 Aug 19
Corey Code
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares10,000
Max PriceUS$5.41
BuyUS$54,09023 Aug 19
Corey Code
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares10,000
Max PriceUS$5.41
BuyUS$11,05708 Aug 19
Russell Kimmitt
EntityIndividual
Shares2,000
Max PriceUS$5.53
BuyUS$133,20007 Aug 19
Fred Fowler
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceUS$5.33
BuyUS$32,26707 Aug 19
Douglas Suttles
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares6,000
Max PriceUS$5.38
BuyUS$55,45606 Aug 19
Douglas Suttles
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares10,000
Max PriceUS$5.55
BuyUS$29,67701 Aug 19
Howard Mayson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$5.94
BuyUS$63,93617 Jun 19
Suzanne Nimocks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$6.39
BuyUS$31,72014 Jun 19
Douglas Suttles
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares5,000
Max PriceUS$6.34
BuyUS$64,02212 Jun 19
David Hill
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Exploration & Business Development
Shares10,000
Max PriceUS$6.40
BuyUS$64,68612 Jun 19
Corey Code
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares10,000
Max PriceUS$6.47
BuyUS$32,22212 Jun 19
Douglas Suttles
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares5,000
Max PriceUS$6.44
BuyUS$64,80012 Jun 19
Corey Code
EntityIndividual
Shares10,000
Max PriceUS$6.48
BuyUS$13,79510 Jun 19
Russell Kimmitt
EntityIndividual
Shares2,000
Max PriceUS$6.90
BuyUS$338,77506 Jun 19
Bruce Waterman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares50,000
Max PriceUS$6.78
BuyUS$35,88003 Jun 19
Douglas Suttles
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares5,000
Max PriceUS$7.18
BuyUS$7,24331 May 19
Russell Kimmitt
EntityIndividual
Shares1,000
Max PriceUS$7.24
BuyUS$87,26723 May 19
Corey Code
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares10,800
Max PriceUS$8.08
BuyUS$80,93123 May 19
Douglas Suttles
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares10,000
Max PriceUS$8.10
BuyUS$36,83813 May 19
Michael McAllister
EntityIndividual
Role
President
President
Shares5,650
Max PriceUS$6.52
BuyUS$9,08001 May 19
Russell Kimmitt
EntityIndividual
Shares1,000
Max PriceUS$9.08
BuyUS$9,22804 Apr 19
Russell Kimmitt
EntityIndividual
Shares1,000
Max PriceUS$9.23
SellUS$157,94302 Apr 19
Steven Nance
EntityIndividual
Shares16,000
Max PriceUS$9.87
BuyUS$9,92802 Apr 19
Russell Kimmitt
EntityIndividual
Shares1,000
Max PriceUS$9.93
BuyUS$89,28108 Mar 19
Suzanne Nimocks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$8.93
BuyUS$36,24406 Mar 19
Michael McAllister
EntityIndividual
Role
President
President
Shares5,200
Max PriceUS$6.97
BuyUS$500,88804 Feb 19
Lee McIntire
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares43,700
Max PriceUS$11.46
BuyUS$37,51420 Dec 18
Douglas Suttles
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares5,000
Max PriceUS$7.50
BuyUS$19,83119 Dec 18
Suzanne Nimocks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$7.93
BuyUS$75,96319 Dec 18
Fred Fowler
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$7.60
BuyUS$27,71314 Dec 18
Howard Mayson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceUS$7.92
BuyUS$43,13206 Dec 18
Douglas Suttles
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares5,000
Max PriceUS$8.63
BuyUS$27,48627 Nov 18
Howard Mayson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$9.16
BuyUS$49,25521 Nov 18
Brian Shaw
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$9.85
BuyUS$46,59420 Nov 18
Douglas Suttles
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares5,000
Max PriceUS$9.32
BuyUS$15,98418 Nov 18
Corey Code
EntityIndividual
Shares1,600
Max PriceUS$9.99
BuyUS$102,66615 Nov 18
Douglas Suttles
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares10,000
Max PriceUS$10.27
BuyUS$102,00515 Nov 18
David Hill
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Exploration & Business Development
Shares10,000
Max PriceUS$10.20
BuyUS$36,07215 Nov 18
Howard Mayson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceUS$10.31
BuyUS$268,51813 Nov 18
Bruce Waterman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceUS$10.74
BuyUS$200,23208 Nov 18
Sherri Brillon
EntityIndividual
Shares17,250
Max PriceUS$11.61
BuyUS$57,57508 Nov 18
Michael Williams
EntityIndividual
Shares5,000
Max PriceUS$11.51
BuyUS$1,151,03207 Nov 18
Clayton Woitas
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares100,000
Max PriceUS$11.51
BuyUS$29,03807 Nov 18
Joanne Alexander
EntityIndividual
Role
Chief Legal Officer
Executive VP & General Counsel
Shares2,500
Max PriceUS$11.62
BuyUS$287,54507 Nov 18
Bruce Waterman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceUS$11.50
BuyUS$63,11506 Nov 18
Michael McAllister
EntityIndividual
Role
President
President
Shares5,500
Max PriceUS$11.48
BuyUS$58,42806 Nov 18
Brian Shaw
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$11.69
BuyUS$115,28106 Nov 18
Renee Zemljak
EntityIndividual
Role
Head of Marketing
Executive Vice President of Midstream
Shares10,000
Max PriceUS$11.53
BuyUS$284,58405 Nov 18
Bruce Waterman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceUS$11.38
BuyUS$99,43005 Nov 18
Michael McAllister
EntityIndividual
Role
President
President
Shares8,655
Max PriceUS$11.49
BuyUS$31,30405 Nov 18
Sherri Brillon
EntityIndividual
Shares2,750
Max PriceUS$11.38
BuyUS$28,91705 Nov 18
Suzanne Nimocks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$11.57
BuyUS$392,97605 Nov 18
Peter Dea
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares34,168
Max PriceUS$11.50
BuyUS$114,48905 Nov 18
Howard Mayson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$11.45
BuyUS$578,33905 Nov 18
Douglas Suttles
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares50,000
Max PriceUS$11.57

Ownership Breakdown


Management Team

  • Doug Suttles (58yo)

    CEO & Director

    • Tenure: 6.3yrs
    • Compensation: US$11.98m
  • Joanne Alexander (52yo)

    Executive VP & General Counsel

    • Tenure: 4.7yrs
  • Mike McAllister (60yo)

    President

    • Tenure: 0yrs
    • Compensation: US$3.71m
  • Renee Zemljak (54yo)

    Executive Vice President of Midstream

    • Tenure: 9.8yrs
    • Compensation: US$2.68m
  • David Hill (57yo)

    Executive Vice President of Exploration & Business Development

    • Tenure: 5.8yrs
    • Compensation: US$2.56m
  • Simon Scott

    Vice-President of Communications

    • Tenure: 0yrs
  • Brendan McCracken

    Executive Vice President of corporate development and external affairs

    • Tenure: 0yrs
  • Corey Code

    Executive VP & CFO

    • Tenure: 0.3yrs
  • Steve Campbell

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Greg Givens

    Executive VP & COO

    • Tenure: 0yrs

Board Members

  • Peter Dea (65yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$235.40k
  • Fred Fowler (73yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$225.32k
  • Bruce Waterman (68yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$245.40k
  • Brian Shaw (65yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$225.40k
  • Clayton Woitas (70yo)

    Chairman of the Board

    • Tenure: 6.2yrs
    • Compensation: US$400.40k
  • Lee McIntire (70yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$225.40k
  • Suzanne Nimocks (60yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$240.40k
  • Margaret McKenzie (57yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$225.40k
  • Doug Suttles (58yo)

    CEO & Director

    • Tenure: 6.3yrs
    • Compensation: US$11.98m
  • Howard Mayson (66yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$235.40k

Company Information

Encana Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Encana Corporation
  • Ticker: ECA
  • Exchange: TSX
  • Founded: 1971
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$8.792b
  • Shares outstanding: 1.35b
  • Website: https://www.encana.com

Number of Employees


Location

  • Encana Corporation
  • 500 Centre Street SE
  • Suite 4400
  • Calgary
  • Alberta
  • T2P 2S5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ECANYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1972
ECATSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1972
PCD1DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1972

Biography

Encana Corporation, together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas, oil, and natural gas liquids. It holds interests in various assets, in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/22 23:35
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.