Today is Wednesday, February 26, 2020, and this is your daily energy stocks roundup. Today we’re looking at the valuations of SEACOR Holdings (NYSE: CKH), Cabot Oil & Gas Corporation (NYSE: COG), and Comstock Resources (NYSE: CRK).
SEACOR Holdings (NYSE: CKH)
SEACOR Holdings (NYSE: CKH) is a $796.07 million company today with a one-year return of -18.64%. 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 32.07 is 36.35% higher than the industry average of 23.52. 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.
SEACOR Holdings’ enterprise-value-to-free-cash-flow (EV/FCF) ratio of 12.07 is 16.47% lower than its industry average of 14.45. 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 SEACOR Holdings has decreased by 47.68% 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.
SEACOR Holdings has scored favorably on 2 of our 3 valuation metrics. With this in mind, we believe the stock is a good value.
Cabot Oil & Gas Corporation (NYSE: COG)
Cabot Oil & Gas Corporation (NYSE: COG) is a $5.878 billion company today with a one-year return of -41.34%. 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 9.061 is 4.48% lower than the industry average of 9.486. That’s good.
Cabot Oil & Gas Corporation’s enterprise-value-to-free-cash-flow (EV/FCF) ratio of 8.852 is 51.89% lower than its industry average of 18.4. That’s good.
The debt-to-equity (D/E) ratio of Cabot Oil & Gas Corporation has decreased by 100.00% over the last year. That’s good.
Cabot Oil & Gas Corporation has scored favorably on 3 of our 3 valuation metrics. With this in mind, we believe the stock is a great value.
Comstock Resources (NYSE: CRK)
Comstock Resources (NYSE: CRK) is a $1.089 billion company today with a one-year return of -18.99%. 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 7.162 is 24.50% lower than the industry average of 9.486. That’s good.
Comstock Resources’ enterprise-value-to-free-cash-flow (EV/FCF) ratio of -861.82 is below zero. That’s not good.
The debt-to-equity (D/E) ratio of Comstock Resources has decreased by 33.41% over the last year. That’s good.
Comstock Resources 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 SEACOR Holdings (NYSE: CKH) is a good value, Cabot Oil & Gas Corporation (NYSE: COG) is a great value, and Comstock Resources (NYSE: CRK) is a good value.
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