NuVista Energy Ltd. (NVA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Suncor Energy, Inc.

Whitecap Resources, Inc.

Peyto Exploration & Development Corp.

Athabasca Oil Corp.

Baytex Energy Corp.

Crescent Point Energy Corp.

NuVista Energy Ltd.

Cenovus Energy, Inc.

Paramount Resources Ltd.

Imperial Oil Ltd.

Enerplus Corp.

Why is NuVista Energy Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 9.60

Healthy long term growth as Net Sales has grown by an annual rate of 18.09% and Operating profit at 68.69%

The company has declared Negative results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CAD 589.78 MM
INTEREST(Q) At CAD 9.81 MM has Grown at 22.45%
INTEREST COVERAGE RATIO(Q) Lowest at 1,180.39

With ROE of 10.28%, it has a fair valuation with a 1.28 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 50.00%, its profits have fallen by -15.8%

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -0.87% over the previous quarter and collectively hold 0% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Market Beating performance in long term as well as near term

Along with generating 50.00% returns in the last 1 year, the stock has outperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to NuVista Energy Ltd. should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is NuVista Energy Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

NuVista Energy Ltd.

39.48%

28.61

34.91%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.74%

EBIT Growth (5y)

68.69%

EBIT to Interest (avg)

9.60

Debt to EBITDA (avg)

1.07

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.51

Tax Ratio

23.16%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

18.01%

ROE (avg)

13.42%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.33

EV to EBIT

14.20

EV to EBITDA

6.58

EV to Capital Employed

1.30

EV to Sales

3.27

PEG Ratio

Dividend Yield

ROCE (Latest)

9.14%

ROE (Latest)

10.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

NET PROFIT(HY)

At CAD 159.5 MM has Grown at 63.98%

INVENTORY TURNOVER RATIO(HY)

Highest at 183.24%

DEBTORS TURNOVER RATIO(HY)

Highest at 10.73%

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 589.78 MM

INTEREST(Q)

At CAD 9.81 MM has Grown at 22.45%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,180.39

RAW MATERIAL COST(Y)

Grown by 8.26% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 15.7 %

Here's what is working for NuVista Energy Ltd.

Net Profit

At CAD 159.5 MM has Grown at 63.98%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Inventory Turnover Ratio

Highest at 183.24%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 10.73%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for NuVista Energy Ltd.

Operating Cash Flow

Lowest at CAD 589.78 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Interest

At CAD 9.81 MM has Grown at 22.45%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest Coverage Ratio

Lowest at 1,180.39

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 15.7 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 8.26% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at CAD 0.35 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income