Today is Wednesday, March 11, 2020, and this is your daily energy stocks roundup. Today we’re looking at the valuations of Helix Energy Solutions Group (NYSE: HLX), ProPetro Holding Corporation (NYSE: PUMP), and Apergy Corporation (NYSE: APY).
Helix Energy Solutions Group (NYSE: HLX)
Helix Energy Solutions Group (NYSE: HLX) is a $364.41 million company today with a one-year return of -62.09%. 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 6.395 is 69.39% lower than the industry average of 20.89. 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.
Helix Energy Solutions Group’s enterprise-value-to-free-cash-flow (EV/FCF) ratio of 21.22 is 87.13% higher than its industry average of 11.34. 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 Helix Energy Solutions Group has decreased by 12.27% 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.
Helix Energy Solutions Group has scored favorably on 2 of our 3 valuation metrics. With this in mind, we believe the stock is a good value.
ProPetro Holding Corporation (NYSE: PUMP)
ProPetro Holding Corporation (NYSE: PUMP) is a $391.4 million company today with a one-year return of -80.42%. 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 1.835 is 91.22% lower than the industry average of 20.89. That’s good.
ProPetro Holding Corporation’s enterprise-value-to-free-cash-flow (EV/FCF) ratio of -29.79 is below zero. That’s not good.
The debt-to-equity (D/E) ratio of ProPetro Holding Corporation has decreased by 36.01% over the last year. That’s good.
ProPetro Holding Corporation has scored favorably on 2 of our 3 valuation metrics. With this in mind, we believe the stock is a good value.
Apergy Corporation (NYSE: APY)
Apergy Corporation (NYSE: APY) is a $643.19 million company today with a one-year return of -79.42%. 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 11.69 is 44.04% lower than the industry average of 20.89. That’s good.
Apergy Corporation’s enterprise-value-to-free-cash-flow (EV/FCF) ratio of 9.912 is 12.59% lower than its industry average of 11.34. That’s good.
The debt-to-equity (D/E) ratio of Apergy Corporation has decreased by 20.53% over the last year. That’s good.
Apergy Corporation has scored favorably on 3 of our 3 valuation metrics. With this in mind, we believe the stock is a great value.
To summarize, we believe Helix Energy Solutions Group (NYSE: HLX) is a good value, ProPetro Holding Corporation (NYSE: PUMP) is a good value, and Apergy Corporation (NYSE: APY) is a great value.
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