Today is Saturday, May 9, 2020, and this is your daily energy stocks roundup. Today we’re looking at the valuations of California Resources Corporation (NYSE: CRC), Altus Midstream (NASDAQ: ALTM), and CONSOL Energy (NYSE: CEIX).
California Resources Corporation (NYSE: CRC)
California Resources Corporation (NYSE: CRC) is a $115.5 million company today with a one-year return of -89.02%. 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 1.55 is 76.77% lower than the industry average of 6.671. 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.
California Resources Corporation’s enterprise-value-to-free-cash-flow (EV/FCF) ratio of 7.636 is 60.23% lower than its industry average of 19.2. 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 California Resources Corporation has decreased by 12.10% 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.
California Resources Corporation has scored favorably on 3 of our 3 valuation metrics. With this in mind, we believe the stock is a great value.
Altus Midstream (NASDAQ: ALTM)
Altus Midstream (NASDAQ: ALTM) is a $211.2 million company today with a one-year return of -87.15%. 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 0.08 is 99.25% lower than the industry average of 10.7. That’s good.
Altus Midstream’s enterprise-value-to-free-cash-flow (EV/FCF) ratio of -2.295 is below zero. That’s not good.
The debt-to-equity (D/E) ratio of Altus Midstream has decreased by 11590.00% over the last year. That’s good.
Altus Midstream 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)
CONSOL Energy (NYSE: CEIX) is a $186.89 million company today with a one-year return of -81.59%. 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 2.583 is 58.47% lower than the industry average of 6.22. That’s good.
CONSOL Energy’s enterprise-value-to-free-cash-flow (EV/FCF) ratio of 12.21 is 202.23% higher than its industry average of 4.04. Not a good sign.
The debt-to-equity (D/E) ratio of CONSOL Energy has decreased by 21.34% 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.
To summarize, we believe California Resources Corporation (NYSE: CRC) is a great value, Altus Midstream (NASDAQ: ALTM) is a good value, and CONSOL Energy (NYSE: CEIX) is a good value.
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