DB:PCD1

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 proven 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

-5.2%

PCD1

-2.7%

DE Oil and Gas

1.7%

DE Market


1 Year Return

-61.8%

PCD1

54.7%

DE Oil and Gas

7.2%

DE Market

Return vs Industry: PCD1 underperformed the German Oil and Gas industry which returned 54.7% over the past year.

Return vs Market: PCD1 underperformed the German Market which returned 7.2% over the past year.


Shareholder returns

PCD1IndustryMarket
7 Day-5.2%-2.7%1.7%
30 Day-17.6%3.7%2.4%
90 Day-12.9%11.3%2.3%
1 Year-61.3%-61.8%59.8%54.7%10.6%7.2%
3 Year-61.9%-62.8%38.0%24.9%18.4%8.1%
5 Year-71.9%-73.7%161.3%120.9%42.3%22.9%

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

No news available

Valuation

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

36.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PCD1 (€3.66) is trading below our estimate of fair value (€5.76)

Significantly Below Fair Value: PCD1 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PCD1 is good value based on its PE Ratio (3.9x) compared to the Oil and Gas industry average (9.7x).

PE vs Market: PCD1 is good value based on its PE Ratio (3.9x) compared to the German market (19x).


Price to Earnings Growth Ratio

PEG Ratio: PCD1 is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: PCD1 is good value based on its PB Ratio (0.5x) compared to the DE Oil and Gas industry average (1.1x).


Next Steps

Future Growth

How is Encana forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

22.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PCD1's forecast earnings growth (22.3% per year) is above the savings rate (0.2%).

Earnings vs Market: PCD1's earnings (22.3% per year) are forecast to grow faster than the German market (12.7% per year).

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

Revenue vs Market: PCD1's revenue (2% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: PCD1's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PCD1's Return on Equity is forecast to be low in 3 years time (9.3%).


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

Earnings Trend: PCD1's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: PCD1's earnings growth over the past year (1684.6%) exceeds its 5-year average (9.9% per year).

Earnings vs Industry: PCD1 earnings growth over the past year (1684.6%) exceeded the Oil and Gas industry 4.1%.


Return on Equity

High ROE: PCD1's Return on Equity (11.6%) is considered low.


Return on Assets

ROA vs Industry: PCD1 has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: PCD1's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Encana's financial position?


Financial Position Analysis

Short Term Liabilities: PCD1's short term assets ($2.0B) do not cover its short term liabilities ($2.4B)

Long Term Liabilities: PCD1's short term assets (2.0B) do not cover its long term liabilities (9.3B)


Debt to Equity History and Analysis

Debt Level: PCD1's debt to equity ratio (70.4%) is considered high

Reducing Debt: PCD1's debt to equity ratio has reduced from 87.1% to 70.4% over the past 5 years.

Debt Coverage: PCD1's debt is well covered by operating cash flow (40.8%).

Interest Coverage: PCD1's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet

Inventory Level: PCD1 has a high level of physical assets or inventory.

Debt Coverage by Assets: PCD1's 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?

1.86%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.5%markettop25%3.8%industryaverage5.9%forecastin3Years1.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PCD1's dividend (1.86%) is higher than the bottom 25% of dividend payers in the German market (1.48%).

High Dividend: PCD1's dividend (1.86%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: PCD1's dividend payments have been volatile in the past 10 years.

Growing Dividend: PCD1's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (6.6%), PCD1's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PCD1's dividends in 3 years are forecast to be thoroughly covered by earnings (8.7% payout ratio).


Next Steps

Management

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

2.6yrs

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

Compensation vs. Market: Doug's total compensation ($USD11.98M) is about average for companies of similar size in the German market ($USD3.65M).

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


Management Age and Tenure

2.6yrs

Average Tenure

57yo

Average Age

Experienced Management: PCD1's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

65.5yo

Average Age

Experienced Board: PCD1's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

Insider Buying: PCD1 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$64,56005 Sep 19
Brian Shaw
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares16,000
Max PriceUS$4.05
BuyUS$36,48323 Aug 19
Corey Code
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares10,000
Max PriceUS$3.65
BuyUS$36,50323 Aug 19
Corey Code
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares10,000
Max PriceUS$3.65
BuyUS$7,43808 Aug 19
Russell Kimmitt
EntityIndividual
Shares2,000
Max PriceUS$3.72
BuyUS$89,04807 Aug 19
Fred Fowler
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceUS$3.56
BuyUS$21,57107 Aug 19
Douglas Suttles
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares6,000
Max PriceUS$3.60
BuyUS$37,42506 Aug 19
Douglas Suttles
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares10,000
Max PriceUS$3.74
BuyUS$20,31301 Aug 19
Howard Mayson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$4.06
BuyUS$42,46317 Jun 19
Suzanne Nimocks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$4.25
BuyUS$21,11914 Jun 19
Douglas Suttles
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares5,000
Max PriceUS$4.22
BuyUS$42,58512 Jun 19
David Hill
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Exploration & Business Development
Shares10,000
Max PriceUS$4.26
BuyUS$43,02612 Jun 19
Corey Code
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares10,000
Max PriceUS$4.30
BuyUS$21,43212 Jun 19
Douglas Suttles
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares5,000
Max PriceUS$4.29
BuyUS$43,10212 Jun 19
Corey Code
EntityIndividual
Shares10,000
Max PriceUS$4.31
BuyUS$9,19410 Jun 19
Russell Kimmitt
EntityIndividual
Shares2,000
Max PriceUS$4.60
BuyUS$224,94206 Jun 19
Bruce Waterman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares50,000
Max PriceUS$4.50
BuyUS$23,76303 Jun 19
Douglas Suttles
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares5,000
Max PriceUS$4.75
BuyUS$4,80731 May 19
Russell Kimmitt
EntityIndividual
Shares1,000
Max PriceUS$4.81
BuyUS$58,02823 May 19
Corey Code
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares10,800
Max PriceUS$5.37
BuyUS$53,81523 May 19
Douglas Suttles
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares10,000
Max PriceUS$5.39
BuyUS$24,34513 May 19
Michael McAllister
EntityIndividual
Role
President
President
Shares5,650
Max PriceUS$4.31
BuyUS$6,02101 May 19
Russell Kimmitt
EntityIndividual
Shares1,000
Max PriceUS$6.02
BuyUS$6,15804 Apr 19
Russell Kimmitt
EntityIndividual
Shares1,000
Max PriceUS$6.16
SellUS$105,56502 Apr 19
Steven Nance
EntityIndividual
Shares16,000
Max PriceUS$6.60
BuyUS$6,64202 Apr 19
Russell Kimmitt
EntityIndividual
Shares1,000
Max PriceUS$6.64
BuyUS$59,14508 Mar 19
Suzanne Nimocks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$5.91
BuyUS$23,82506 Mar 19
Michael McAllister
EntityIndividual
Role
President
President
Shares5,200
Max PriceUS$4.58
BuyUS$335,34304 Feb 19
Lee McIntire
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares43,700
Max PriceUS$7.67
BuyUS$24,30620 Dec 18
Douglas Suttles
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares5,000
Max PriceUS$4.86
BuyUS$12,92819 Dec 18
Suzanne Nimocks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$5.17
BuyUS$49,62119 Dec 18
Fred Fowler
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$4.96
BuyUS$18,33314 Dec 18
Howard Mayson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceUS$5.24
BuyUS$28,22906 Dec 18
Douglas Suttles
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares5,000
Max PriceUS$5.65
BuyUS$18,31927 Nov 18
Howard Mayson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$6.11
BuyUS$32,54821 Nov 18
Brian Shaw
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$6.51
BuyUS$30,86620 Nov 18
Douglas Suttles
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares5,000
Max PriceUS$6.17
BuyUS$10,65618 Nov 18
Corey Code
EntityIndividual
Shares1,600
Max PriceUS$6.66
BuyUS$68,67915 Nov 18
Douglas Suttles
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares10,000
Max PriceUS$6.87
BuyUS$68,23715 Nov 18
David Hill
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Exploration & Business Development
Shares10,000
Max PriceUS$6.82
BuyUS$24,13015 Nov 18
Howard Mayson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceUS$6.89
BuyUS$179,87813 Nov 18
Bruce Waterman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceUS$7.20
BuyUS$133,70208 Nov 18
Sherri Brillon
EntityIndividual
Shares17,250
Max PriceUS$7.75
BuyUS$38,42108 Nov 18
Michael Williams
EntityIndividual
Shares5,000
Max PriceUS$7.68
BuyUS$765,26507 Nov 18
Clayton Woitas
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares100,000
Max PriceUS$7.65
BuyUS$19,30607 Nov 18
Joanne Alexander
EntityIndividual
Role
Chief Legal Officer
Executive VP & General Counsel
Shares2,500
Max PriceUS$7.72
BuyUS$191,88807 Nov 18
Bruce Waterman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceUS$7.68
BuyUS$42,11906 Nov 18
Michael McAllister
EntityIndividual
Role
President
President
Shares5,500
Max PriceUS$7.66
BuyUS$38,99106 Nov 18
Brian Shaw
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$7.80
BuyUS$76,93006 Nov 18
Renee Zemljak
EntityIndividual
Role
Head of Marketing
Executive Vice President of Midstream
Shares10,000
Max PriceUS$7.69
BuyUS$190,52805 Nov 18
Bruce Waterman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceUS$7.62
BuyUS$66,56805 Nov 18
Michael McAllister
EntityIndividual
Role
President
President
Shares8,655
Max PriceUS$7.69
BuyUS$20,95805 Nov 18
Sherri Brillon
EntityIndividual
Shares2,750
Max PriceUS$7.62
BuyUS$19,36005 Nov 18
Suzanne Nimocks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$7.74
BuyUS$263,09605 Nov 18
Peter Dea
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares34,168
Max PriceUS$7.70
BuyUS$76,65005 Nov 18
Howard Mayson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$7.66
BuyUS$387,19605 Nov 18
Douglas Suttles
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares50,000
Max PriceUS$7.74

Ownership Breakdown


Management Team

  • Doug Suttles (58yo)

    CEO & Director

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

    Executive VP & General Counsel

    • Tenure: 4.8yrs
  • Mike McAllister (60yo)

    President

    • Tenure: 0.08yrs
    • Compensation: US$3.71m
  • Renee Zemljak (54yo)

    Executive Vice President of Midstream

    • Tenure: 9.9yrs
    • Compensation: US$2.68m
  • David Hill (57yo)

    Executive Vice President of Exploration & Business Development

    • Tenure: 5.9yrs
    • Compensation: US$2.56m
  • Simon Scott

    Vice-President of Communications

    • Tenure: 0yrs
  • Brendan McCracken

    Executive Vice President of corporate development and external affairs

    • Tenure: 0.08yrs
  • Corey Code

    Executive VP & CFO

    • Tenure: 0.4yrs
  • Steve Campbell

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Greg Givens

    Executive VP & COO

    • Tenure: 0.08yrs

Board Members

  • Peter Dea (65yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$235.40k
  • Fred Fowler (73yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$225.32k
  • Bruce Waterman (68yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$245.40k
  • Brian Shaw (65yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$225.40k
  • Clayton Woitas (70yo)

    Independent Chairman of the Board

    • Tenure: 6.3yrs
    • Compensation: US$400.40k
  • Lee McIntire (70yo)

    Independent Director

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

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$240.40k
  • Margaret McKenzie (57yo)

    Independent Director

    • Tenure: 4.6yrs
    • 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: PCD1
  • Exchange: DB
  • Founded: 1971
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$7.122b
  • Listing Market Cap: CA$4.879b
  • 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 Analysis2019/10/22 20:56
End of Day Share Price2019/10/22 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.