NuVista Energy Ltd.
NuVista Energy Ltd. Fundamental Analysis
NuVista Energy Ltd. (NVA.TO) shows moderate financial fundamentals with a PE ratio of 11.36, profit margin of 27.85%, and ROE of 13.56%. The company generates $1.2B in annual revenue with weak year-over-year growth of -3.77%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NVA.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakNVA.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNVA.TO trades at attractive valuation levels.
Growth Score
WeakNVA.TO faces weak or negative growth trends.
Financial Health Score
ModerateNVA.TO shows balanced financial health with some risks.
Profitability Score
ModerateNVA.TO maintains healthy but balanced margins.
Key Financial Metrics
Is NVA.TO Expensive or Cheap?
P/E Ratio
NVA.TO trades at 11.36 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NVA.TO's PEG of -1.95 indicates potential undervaluation.
Price to Book
The market values NuVista Energy Ltd. at 1.53 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.44 times EBITDA. This is generally considered low.
How Well Does NVA.TO Make Money?
Net Profit Margin
For every $100 in sales, NuVista Energy Ltd. keeps $27.85 as profit after all expenses.
Operating Margin
Core operations generate 23.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.56 in profit for every $100 of shareholder equity.
ROA
NuVista Energy Ltd. generates $8.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NuVista Energy Ltd. generates strong operating cash flow of $531.17M, reflecting robust business health.
Free Cash Flow
NuVista Energy Ltd. produces free cash flow of $77.57M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.40 in free cash annually.
FCF Yield
NVA.TO converts 2.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.95
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.81
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How NVA.TO Stacks Against Its Sector Peers
| Metric | NVA.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.36 | 21.23 | Better (Cheaper) |
| ROE | 13.56% | 945.00% | Weak |
| Net Margin | 27.85% | -60038.00% (disorted) | Strong |
| Debt/Equity | 0.17 | -0.49 (disorted) | Distorted |
| Current Ratio | 0.81 | 6.45 | Weak Liquidity |
| ROA | 8.93% | -11001215.00% (disorted) | Weak |
NVA.TO outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NuVista Energy Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
136.99%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
624.05%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
148.92%
Industry Style: Cyclical, Value, Commodity
High Growth