TSX:NVA

Stock Analysis Report

NuVista Energy

Executive Summary

NuVista Energy Ltd., an oil and natural gas company, engages in the exploration, development, delineation, and production of condensate, and oil and natural gas reserves in the Western Canadian Sedimentary Basin in Canada.

Rewards

Trading at 77.4% below its fair value

Earnings are forecast to grow 24.27% per year

Earnings have grown 58.9% per year over the past 5 years

Risk Analysis

High level of non-cash earnings

Has a high level of debt

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Very undervalued with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NVA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-12.2%

NVA

-0.9%

CA Oil and Gas

0.4%

CA Market


1 Year Return

-39.3%

NVA

4.7%

CA Oil and Gas

10.1%

CA Market

Return vs Industry: NVA underperformed the Canadian Oil and Gas industry which returned 5.3% over the past year.

Return vs Market: NVA underperformed the Canadian Market which returned 10.4% over the past year.


Shareholder returns

NVAIndustryMarket
7 Day-12.2%-0.9%0.4%
30 Day-17.0%-0.5%2.1%
90 Day27.0%9.2%6.4%
1 Year-39.3%-39.3%9.3%4.7%13.6%10.1%
3 Year-62.0%-62.0%-7.5%-17.2%17.2%6.6%
5 Year-59.5%-59.5%-4.9%-20.1%37.5%17.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is NuVista Energy undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NVA (CA$3.02) is trading below our estimate of fair value (CA$13.34)

Significantly Below Fair Value: NVA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NVA is good value based on its PE Ratio (9.8x) compared to the Oil and Gas industry average (11.8x).

PE vs Market: NVA is good value based on its PE Ratio (9.8x) compared to the Canadian market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: NVA is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: NVA is good value based on its PB Ratio (0.5x) compared to the CA Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is NuVista Energy forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

52.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NVA's forecast earnings growth (24.3% per year) is above the savings rate (1.4%).

Earnings vs Market: NVA's earnings (24.3% per year) are forecast to grow faster than the Canadian market (10.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NVA's revenue (19.3% per year) is forecast to grow faster than the Canadian market (5% per year).

High Growth Revenue: NVA's revenue (19.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NVA's Return on Equity is forecast to be low in 3 years time (3.3%).


Next Steps

Past Performance

How has NuVista Energy performed over the past 5 years?

58.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NVA has a high level of non-cash earnings.

Growing Profit Margin: NVA's current net profit margins (14.5%) are higher than last year (13.6%).


Past Earnings Growth Analysis

Earnings Trend: NVA has become profitable over the past 5 years, growing earnings by 58.9% per year.

Accelerating Growth: NVA's earnings growth over the past year (4.5%) is below its 5-year average (58.9% per year).

Earnings vs Industry: NVA earnings growth over the past year (4.5%) underperformed the Oil and Gas industry 16.5%.


Return on Equity

High ROE: NVA's Return on Equity (5.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NuVista Energy's financial position?


Financial Position Analysis

Short Term Liabilities: NVA's short term assets (CA$113.1M) exceed its short term liabilities (CA$96.3M).

Long Term Liabilities: NVA's short term assets (CA$113.1M) do not cover its long term liabilities (CA$901.4M).


Debt to Equity History and Analysis

Debt Level: NVA's debt to equity ratio (41.7%) is considered high.

Reducing Debt: NVA's debt to equity ratio has increased from 23.4% to 41.7% over the past 5 years.

Debt Coverage: NVA's debt is well covered by operating cash flow (44.3%).

Interest Coverage: NVA's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet

Inventory Level: NVA has a high level of physical assets or inventory.

Debt Coverage by Assets: NVA's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.9%markettop25%5.5%industryaverage4.6%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate NVA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NVA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NVA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NVA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: NVA is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NVA's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

7.0yrs

Average management tenure


CEO

Jonathan Wright (53yo)

8.7yrs

Tenure

CA$2,258,232

Compensation

Mr. Jonathan Andrew Wright, P. Eng. has been the Chief Executive Officer and President at NuVista Energy Ltd. since May 09, 2011. Mr. Wright served as Vice President at Talisman Energy Inc. He has more tha ...


CEO Compensation Analysis

Compensation vs Market: Jonathan's total compensation ($USD1.73M) is above average for companies of similar size in the Canadian market ($USD1.00M).

Compensation vs Earnings: Jonathan's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.0yrs

Average Tenure

Experienced Management: NVA's management team is seasoned and experienced (7 years average tenure).


Board Age and Tenure

7.8yrs

Average Tenure

62yo

Average Age

Experienced Board: NVA's board of directors are considered experienced (7.8 years average tenure).


Insider Trading

Insider Buying: NVA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$51,47221 Jan 20
Thomas Claugus
EntityIndividual
Shares19,300
Max PriceCA$2.67
BuyCA$1,333,46621 Jan 20
GMT Capital Corp.
EntityCompany
Shares500,000
Max PriceCA$2.67
BuyCA$34,12714 Jan 20
Joshua Truba
EntityIndividual
Shares12,059
Max PriceCA$2.83
BuyCA$40,57114 Jan 20
Ross Andreachuk
EntityIndividual
Role
Chief Financial Officer
VP of Finance
Shares14,336
Max PriceCA$2.83
BuyCA$33,54414 Jan 20
Ryan Paulgaard
EntityIndividual
Shares12,470
Max PriceCA$2.69
BuyCA$44,35614 Jan 20
Michael Lawford
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares15,785
Max PriceCA$2.81
BuyCA$17,51614 Jan 20
Christopher LeGrow
EntityIndividual
Role
Other Key Executive
Vice President of Development and Planning
Shares7,238
Max PriceCA$2.42
BuyCA$36,42514 Jan 20
Kevin Asman
EntityIndividual
Role
Head of Marketing
Vice President of Marketing
Shares12,871
Max PriceCA$2.83
BuyCA$68,34414 Jan 20
Jonathan Wright
EntityIndividual
Role
Chief Executive Officer
President
Shares24,150
Max PriceCA$2.83
BuyCA$1,597,76808 Jan 20
GMT Capital Corp.
EntityCompany
Shares502,500
Max PriceCA$3.18
BuyCA$61,68508 Jan 20
Thomas Claugus
EntityIndividual
Shares19,400
Max PriceCA$3.18
BuyCA$157,00026 Dec 19
Keith A. MacPhail
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares50,000
Max PriceCA$3.14
BuyCA$20,19719 Dec 19
Thomas Claugus
EntityIndividual
Shares7,000
Max PriceCA$2.96
BuyCA$516,96719 Dec 19
GMT Capital Corp.
EntityCompany
Shares179,200
Max PriceCA$2.96
SellCA$318,33412 Dec 19
GMT Capital Corp.
EntityCompany
Shares118,250
Max PriceCA$2.75
BuyCA$18,69422 Nov 19
Thomas Claugus
EntityIndividual
Shares7,600
Max PriceCA$2.46
BuyCA$486,03822 Nov 19
GMT Capital Corp.
EntityCompany
Shares197,600
Max PriceCA$2.46
BuyCA$30,50425 Oct 19
Thomas Claugus
EntityIndividual
Shares19,200
Max PriceCA$1.62
BuyCA$794,47925 Oct 19
GMT Capital Corp.
EntityCompany
Shares500,000
Max PriceCA$1.62
SellCA$133,13503 Oct 19
GMT Capital Corp.
EntityCompany
Shares81,180
Max PriceCA$1.64
BuyCA$65,76518 Sep 19
Thomas Claugus
EntityIndividual
Shares26,500
Max PriceCA$2.48
BuyCA$1,489,02918 Sep 19
GMT Capital Corp.
EntityCompany
Shares600,000
Max PriceCA$2.48
BuyCA$66,61316 Sep 19
Thomas Claugus
EntityIndividual
Shares26,600
Max PriceCA$2.50
BuyCA$1,502,62516 Sep 19
GMT Capital Corp.
EntityCompany
Shares600,030
Max PriceCA$2.50
BuyCA$580,00029 Aug 19
Ronald J. Poelzer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares400,000
Max PriceCA$1.45
BuyCA$16,50019 Aug 19
Jonathan Wright
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceCA$1.65
BuyCA$12,53904 Jul 19
Christopher LeGrow
EntityIndividual
Role
Other Key Executive
Vice President of Development and Planning
Shares5,000
Max PriceCA$2.51
BuyCA$47,88017 Jun 19
Ross Andreachuk
EntityIndividual
Role
Chief Financial Officer
VP of Finance
Shares19,000
Max PriceCA$2.52
BuyCA$13,51529 May 19
Michael Lawford
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares4,250
Max PriceCA$3.18
BuyCA$9,82825 May 19
Jonathan Wright
EntityIndividual
Role
Chief Executive Officer
President
Shares3,150
Max PriceCA$3.12
BuyCA$15,30021 May 19
Jonathan Wright
EntityIndividual
Role
Chief Executive Officer
President
Shares4,250
Max PriceCA$3.60
BuyCA$14,04013 May 19
Michael Lawford
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares4,000
Max PriceCA$3.51
BuyCA$8,07529 Mar 19
Deborah Stein
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,900
Max PriceCA$4.25
SellCA$116,43721 Mar 19
Keith A. MacPhail
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares25,000
Max PriceCA$4.85
SellCA$112,48909 Mar 19
Keith A. MacPhail
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares25,000
Max PriceCA$4.54

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 26.9%.


Management Team

  • Ross Andreachuk

    VP of Finance

    • Tenure: 5.3yrs
    • Compensation: CA$1.17m
  • Jonathan Wright (53yo)

    President

    • Tenure: 8.7yrs
    • Compensation: CA$2.26m
  • Kevin Asman

    Vice President of Marketing

    • Tenure: 10yrs
    • Compensation: CA$1.10m
  • Chris LeGrow

    Vice President of Development and Planning

    • Mike Lawford

      Chief Operating Officer

      • Tenure: 2.1yrs
      • Compensation: CA$1.35m

    Board Members

    • Keith A. MacPhail (62yo)

      Independent Chairman of the Board

      • Tenure: 16.7yrs
      • Compensation: CA$174.58k
    • Grant Zawalsky (59yo)

      Independent Director

      • Tenure: 16.7yrs
      • Compensation: CA$128.48k
    • Brian Shaw (65yo)

      Independent Director

      • Tenure: 5.4yrs
      • Compensation: CA$119.38k
    • Ron Poelzer (57yo)

      Independent Director

      • Tenure: 16.7yrs
      • Compensation: CA$136.43k
    • Sheldon Steeves (65yo)

      Independent Director

      • Tenure: 6.8yrs
      • Compensation: CA$122.68k
    • Pentti Karkkainen (64yo)

      Lead Director

      • Compensation: CA$137.58k
    • Ron Eckhardt (64yo)

      Independent Director

      • Tenure: 6.8yrs
      • Compensation: CA$119.38k
    • Debbie Stein (58yo)

      Independent Director

      • Tenure: 3.4yrs
      • Compensation: CA$135.73k
    • Jonathan Wright (53yo)

      President

      • Tenure: 8.7yrs
      • Compensation: CA$2.26m

    Company Information

    NuVista Energy Ltd.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: NuVista Energy Ltd.
    • Ticker: NVA
    • Exchange: TSX
    • Founded: 2003
    • Industry: Oil and Gas Exploration and Production
    • Sector: Energy
    • Market Cap: CA$584.283m
    • Shares outstanding: 225.59m
    • Website: https://www.nuvistaenergy.com

    Number of Employees


    Location

    • NuVista Energy Ltd.
    • 525–8th Ave SW
    • Suite 2500
    • Calgary
    • Alberta
    • T2P 1G1
    • Canada

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    NVATSX (The Toronto Stock Exchange)YesVoting Common SharesCACADJul 2003
    NVGDB (Deutsche Boerse AG)YesVoting Common SharesDEEURJul 2003
    NUVS.FOTCPK (Pink Sheets LLC)YesVoting Common SharesUSUSDJul 2003

    Biography

    NuVista Energy Ltd., an oil and natural gas company, engages in the exploration, development, delineation, and production of condensate, and oil and natural gas reserves in the Western Canadian Sedimentary Basin in Canada. It primarily focuses on the condensate-rich Montney formation in the Wapiti area of the Alberta Deep Basin. NuVista Energy Ltd. was founded in 2003 and is headquartered in Calgary, Canada. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/23 23:51
    End of Day Share Price2020/01/23 00:00
    Earnings2019/09/30
    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.