NASDAQ:CHRD, an undervalued stock with good fundamentals.

Last update: Jul 25, 2024

Our stock screening tool has pinpointed CHORD ENERGY CORP (NASDAQ:CHRD) as an undervalued stock. NASDAQ:CHRD maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Unpacking NASDAQ:CHRD's Valuation Rating

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:CHRD scores a 7 out of 10:

The Price/Earnings ratio is 8.97, which indicates a very decent valuation of CHRD.
Based on the Price/Earnings ratio, CHRD is valued a bit cheaper than the industry average as 69.05% of the companies are valued more expensively.
CHRD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.43.
A Price/Forward Earnings ratio of 7.35 indicates a rather cheap valuation of CHRD.
Based on the Price/Forward Earnings ratio, CHRD is valued a bit cheaper than 73.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.38. CHRD is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, CHRD is valued a bit cheaper than 61.43% of the companies in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CHRD may justify a higher PE ratio.

Exploring NASDAQ:CHRD's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:CHRD, the assigned 6 is noteworthy for profitability:

With an excellent Return On Assets value of 13.13%, CHRD belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.
CHRD has a better Return On Equity (18.18%) than 61.90% of its industry peers.
CHRD's Return On Invested Capital of 16.17% is amongst the best of the industry. CHRD outperforms 83.81% of its industry peers.
The 3 year average ROIC (21.58%) for CHRD is well above the current ROIC(16.17%). The reason for the recent decline needs to be investigated.
CHRD has a better Profit Margin (22.59%) than 66.67% of its industry peers.
CHRD's Operating Margin of 29.93% is fine compared to the rest of the industry. CHRD outperforms 60.95% of its industry peers.
CHRD's Operating Margin has improved in the last couple of years.

Assessing Health Metrics for NASDAQ:CHRD

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:CHRD, the assigned 8 for health provides valuable insights:

An Altman-Z score of 4.86 indicates that CHRD is not in any danger for bankruptcy at the moment.
CHRD has a better Altman-Z score (4.86) than 88.10% of its industry peers.
CHRD has a debt to FCF ratio of 0.90. This is a very positive value and a sign of high solvency as it would only need 0.90 years to pay back of all of its debts.
The Debt to FCF ratio of CHRD (0.90) is better than 85.71% of its industry peers.
CHRD has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
CHRD has a better Debt to Equity ratio (0.08) than 79.52% of its industry peers.

A Closer Look at Growth for NASDAQ:CHRD

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:CHRD scores a 4 out of 10:

Measured over the past years, CHRD shows a quite strong growth in Revenue. The Revenue has been growing by 10.91% on average per year.
The Revenue is expected to grow by 13.81% on average over the next years. This is quite good.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Check the latest full fundamental report of CHRD for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.