NuVista Energy (NVA) AI Stock Analysis

• Market Cap: C$2.75B
• Dividend Yield: N/A
• Average Volume (3M): 1.00M
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.77
• Revenue Growth: -15.57%
• EPS Growth: -12.73%
• Country: CA
• Employees: 97
• Sector: Energy
• Sector Strength: 85
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.49
• Shares Outstanding: 202,441,900
• 10 Day Avg. Volume: 1,396,937
• 30 Day Avg. Volume: 1,001,054
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.36
• Price to Cash Flow (P/CF): 4.80
• P/FCF Ratio: 9.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$17.13
• Price Target Upside: 25.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

NuVista Energy's strong financial performance, robust valuation, and positive corporate events position it well within the fossil fuels industry. The company's effective cost management and reduced debt enhance its financial stability, despite slight revenue and cash flow challenges. Technical indicators suggest stable momentum. Overall, the stock presents a solid investment opportunity, driven by strong fundamentals and a favorable valuation.

Positive Factors

Production Performance

NuVista is one of the few E&P companies with 'permission to grow,' supported by top-quartile production rates and superior Montney results.

Profitability

NuVista's management added $0.25 in value for every dollar spent, indicating strong profitability.

Negative Factors

Infrastructure Delays

Despite a delay in third-party infrastructure, there was no change to guidance, which should please investors.

NuVista Energy Business Overview & Revenue Model

Company Description

NuVista Energy Ltd. (NVA) is a Canadian oil and natural gas company engaged in the exploration, development, and production of hydrocarbons. The company primarily operates in the Western Canadian Sedimentary Basin, with a focus on the Montney formation, one of the most prolific and resource-rich areas for natural gas and condensate production. NuVista Energy is committed to delivering sustainable energy solutions and creating value through strategic asset development and operational excellence.

How the Company Makes Money

NuVista Energy makes money by extracting and selling oil, natural gas, and natural gas liquids (NGLs) from its assets in the Montney formation. The company's primary revenue streams come from the sale of these hydrocarbons to various markets, which include domestic and international customers. NuVista Energy benefits from its strategic partnerships with infrastructure and midstream companies, which facilitate the efficient transportation and processing of its products. Additionally, the company's earnings are influenced by factors such as commodity prices, production volumes, and operational efficiencies. By focusing on cost management and maximizing the value of its resource base, NuVista Energy aims to enhance its profitability and shareholder value.

NuVista Energy Financial Statement Overview

Summary

NuVista Energy exhibits strong operational performance with solid margins and a healthy balance sheet. While revenue has slightly decreased, effective cost management keeps profitability stable. The reduction in debt enhances financial stability, though attention is needed on cash flow management due to declining Free Cash Flow.

Income Statement

NuVista Energy has shown a slight decrease in revenue in the latest year, with a Total Revenue of $1.215 billion compared to $1.263 billion the previous year. Gross Profit Margin remains robust, indicating effective cost management. The Net Profit Margin declined slightly, reflecting a drop in profitability. The absence of EBIT in the latest report is notable, but EBITDA remains strong, suggesting good operational performance.

Balance Sheet

The company's Debt-to-Equity ratio has improved, indicating a lower reliance on debt to finance operations, which reduces financial risk. The Return on Equity remains healthy, demonstrating effective use of shareholder funds. The Equity Ratio suggests a strong capital structure, with a significant portion of assets financed through equity.

Cash Flow

Operating Cash Flow remains strong, but Free Cash Flow has decreased, reflecting higher capital expenditures. The Free Cash Flow to Net Income Ratio indicates that the company generates sufficient cash to cover its net income. However, the Free Cash Flow Growth Rate has declined, which could impact future flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.22B	1.26B	1.75B	885.29M	424.64M
	Gross Profit
788.15M	804.36M	1.34B	819.33M	48.35M
	EBIT
0.00	513.69M	880.64M	471.14M	-239.52M
	EBITDA
729.79M	767.13M	1.07B	562.80M	-38.84M
	Net Income Common Stockholders
305.72M	367.68M	631.04M	264.67M	-197.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	0.00	41.89M	-122.03M	-125.96M
	Total Assets
3.45B	3.06B	2.82B	2.39B	2.16B
	Total Debt
288.07M	305.05M	332.12M	541.26M	706.36M
	Net Debt
288.07M	305.05M	290.23M	663.29M	832.32M
	Total Liabilities
1.10B	943.02M	886.17M	956.17M	1.00B
	Stockholders Equity
2.35B	2.12B	1.94B	1.44B	1.16B
Cash Flow		Free Cash Flow
105.98M	160.14M	428.64M	50.74M	-32.91M
	Operating Cash Flow
600.25M	721.34M	844.82M	338.58M	147.20M
	Investing Cash Flow
-499.58M	-531.59M	-442.09M	-176.26M	-201.43M
	Financing Cash Flow
-100.67M	-231.65M	-360.83M	-162.32M	54.23M

NuVista Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NVA, the sentiment is Positive. The current price of 13.6 is above the 20-day moving average (MA) of 12.44, above the 50-day MA of 12.66, and above the 200-day MA of 12.72, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 67.21 is Neutral, neither overbought nor oversold. The STOCH value of 80.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NVA.

NuVista Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOU	78 Outperform	C$25.51B	19.25	8.55%	1.94%	-8.29%	-30.52%
NVA	75 Outperform	C$2.75B	9.16	13.72%	―	-15.57%	-12.73%
PEY	73 Outperform	C$3.63B	12.72	10.37%	7.29%	-9.52%	-11.68%
ARX	71 Outperform	$16.88B	15.15	14.67%	2.55%	-9.83%	-27.76%
BIR	62 Neutral	$1.81B	31.89	2.51%	6.28%	-26.02%	464.95%
AAV	62 Neutral	$1.79B	80.41	1.37%	―	-2.31%	-78.23%
Sector *	58 Neutral	$9.08B	5.25	-7.99%	7.51%	0.47%	-64.07%

NuVista Energy Corporate Events

NuVista Energy Reports Record Reserves and Strong 2024 Financial Results

NuVista Energy Ltd. reported record reserves and strong financial results for the year ending December 31, 2024, with significant growth in production and reserves. The company achieved its highest-ever annual average production, increased capital expenditures, and maintained a strong financial position with low net debt. NuVista also expanded its natural gas portfolio by adding LNG sales and was recognized as part of the TSX30 for the third consecutive year, ranking sixth overall.