Today is Thursday, July 9, 2020, and this is your daily energy stocks roundup. Today we're looking at the valuations of QEP Resources (NYSE: QEP), CONSOL Energy (NYSE: CEIX), and Penn Virginia Corporation (NASDAQ: PVAC).
QEP Resources (NYSE: QEP) is a $285.78 million company today with a one-year return of -82.34%. Let's look at its price-to-earnings (P/E) ratio, its enterprise-value-to-free-cash-flow (EV/CF) ratio, and its debt-to-equity ratio to gauge whether or not it's a good investment.
The company's P/E ratio of 0.7284 is 93.20% lower than the industry average of 10.71. That's good. A company's P/E ratio shows its price as a multiple of its earnings per share (EPS). A relatively low P/E ratio is generally an indicator that a company is undervalued.
QEP Resources' enterprise-value-to-free-cash-flow (EV/FCF) ratio of 30.02 is 44.12% higher than its industry average of 20.83. Not a good sign. A company's EV/FCF ratio measures its enterprise value (market cap adjusted for cash holdings and debt) against its free cash flow (how much money the company has after all of its cash outflows). A high EV/FCF ratio could indicate that a company is performing inefficiently, has too much debt, or is starved for cash.
The debt-to-equity (D/E) ratio of QEP Resources has decreased by 19.56% over the last year. That's good.
A company's D/E ratio equals its total liabilities divided by its shareholder equity. It's a measure of a company's financial leverage. A declining D/E ratio indicates that a company is decreasing its debt burden over time, while a rising ratio indicates that a company is taking on more debt over time.
QEP Resources has scored favorably on 2 of our 3 valuation metrics. With this in mind, we believe the stock is a good value.
CONSOL Energy (NYSE: CEIX) is a $134.83 million company today with a one-year return of -79.28%. Judging by its price-to-earnings (P/E) ratio, its enterprise-value-to-free-cash-flow (EV/CF) ratio, and its debt-to-equity ratio, is it a good investment?
The company's P/E ratio of 2.217 is 64.22% lower than the industry average of 6.196. That's good.
CONSOL Energy's enterprise-value-to-free-cash-flow (EV/FCF) ratio of 16.95 is 468.79% higher than its industry average of 2.98. Not a good sign.
The debt-to-equity (D/E) ratio of CONSOL Energy has decreased by 10.26% over the last year. That's good.
CONSOL Energy has scored favorably on 2 of our 3 valuation metrics. With this in mind, we believe the stock is a good value.
Penn Virginia Corporation (NASDAQ: PVAC) is a $129.3 million company today with a one-year return of -67.22%. Is it a good value based on its price-to-earnings (P/E) ratio, its enterprise-value-to-free-cash-flow (EV/CF) ratio, and its debt-to-equity ratio?
The company's P/E ratio of 0.4747 is 95.57% lower than the industry average of 10.71. That's good.
Penn Virginia Corporation's enterprise-value-to-free-cash-flow (EV/FCF) ratio of -45.6 is below zero. That's not good.
The debt-to-equity (D/E) ratio of Penn Virginia Corporation has decreased by 31.38% over the last year. That's good.
Penn Virginia Corporation has scored favorably on 2 of our 3 valuation metrics. With this in mind, we believe the stock is a good value.
To summarize, we believe QEP Resources (NYSE: QEP) is a good value, CONSOL Energy (NYSE: CEIX) is a good value, and Penn Virginia Corporation (NASDAQ: PVAC) is a good value.
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