Tuesday, March 30, 2010

Quick Analysis: EnCana Corp (ECA)

ECA: EnCana Corp

Recent Range: $24/share – $35/share (Current Price: 30.34, as of close of 3/29/10)

Price/Sales (P/S) = 2.00 (1.14, Industry)
Price/Book (P/B) = 1.22 (1.77)
Gross Margin = 17.5% (11.7%)
Pre-Tax Margin = -56.5% (-39.0%)
Debt/Equity Ratio = 0.47 (0.25)
Current Ratio = 1.4 (1.1)
Return on Equity = 9.3% (13.1%)
Return on Assets = 4.5% (6.4%)
Return on Capital = 5.0% (8.7%)

Analysis: OK—NOT GREAT.

This company seems to have more debt than many others within its industry, but they seem to manage it pretty well. They seem to have plenty of cash to withstand some downturn. Their returns are a little disappointing.

You can play with this stock’s overall upward trending pattern and short-term volatility. The dividend is okay, too. (about 2-3%)

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