Today is Monday, February 3, 2020, and this is your daily energy stocks roundup. Today we’re looking at the valuations of Calumet Specialty Products Partners LP (NASDAQ: CLMT), HighPoint Resources Corporation (NYSE: HPR), and Clean Energy Fuels Corporation (NASDAQ: CLNE).
Calumet Specialty Products Partners LP (NASDAQ: CLMT)
Calumet Specialty Products Partners LP (NASDAQ: CLMT) is a $324.98 million company today with a one-year return of 29.6%. 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 26.19 is 253.54% higher than the industry average of 7.408. That’s not good. A company’s P/E ratio shows its price as a multiple of its earnings per share (EPS). A relatively high P/E ratio is generally an indicator that a company is overvalued.
Calumet Specialty Products Partners LP’s enterprise-value-to-free-cash-flow (EV/FCF) ratio of 7.138 is 71.17% lower than its industry average of 24.76. That’s good.
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 low EV/FCF ratio indicates that a company is performing efficiently, managing its debt well, and maintaining a strong cash position.
The debt-to-equity (D/E) ratio of Calumet Specialty Products Partners LP has increased by 578.95% over the last year. That’s not 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.
Calumet Specialty Products Partners LP has scored favorably on 1 of our 3 valuation metrics. With this in mind, we believe the stock is slightly overvalued.
HighPoint Resources Corporation (NYSE: HPR)
HighPoint Resources Corporation (NYSE: HPR) is a $243.59 million company today with a one-year return of -58.57%. 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 1.781 is 75.96% lower than the industry average of 7.408. That’s good.
HighPoint Resources Corporation’s enterprise-value-to-free-cash-flow (EV/FCF) ratio of -4.183 is below zero. That’s not good.
The debt-to-equity (D/E) ratio of HighPoint Resources Corporation has increased by 12.47% over the last year. That’s not good.
HighPoint Resources Corporation has scored favorably on 1 of our 3 valuation metrics. With this in mind, we believe the stock is slightly overvalued.
Clean Energy Fuels Corporation (NASDAQ: CLNE)
Clean Energy Fuels Corporation (NASDAQ: CLNE) is a $483.15 million company today with a one-year return of 21.05%. 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 16.73 is 31.63% higher than the industry average of 12.71. That’s not good.
Clean Energy Fuels Corporation’s enterprise-value-to-free-cash-flow (EV/FCF) ratio of -47.6 is below zero. That’s not good.
The debt-to-equity (D/E) ratio of Clean Energy Fuels Corporation has decreased by 66.04% over the last year. That’s good.
Clean Energy Fuels Corporation has scored favorably on 1 of our 3 valuation metrics. With this in mind, we believe the stock is slightly overvalued.
To summarize, we believe Calumet Specialty Products Partners LP (NASDAQ: CLMT) is slightly overvalued, HighPoint Resources Corporation (NYSE: HPR) is slightly overvalued, and Clean Energy Fuels Corporation (NASDAQ: CLNE) is slightly overvalued.
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