ANTERO RESOURCES CORP (AR) Stock Fundamental Analysis
NYSE:AR - New York Stock Exchange, Inc. - US03674X1063 - Common Stock
Overall AR gets a fundamental rating of 3 out of 10. We evaluated AR against 210 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of AR have multiple concerns. While showing a medium growth rate, AR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year AR has reported negative net income.
In the past year AR had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: AR reported negative net income in multiple years.
In the past 5 years AR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AR (0.34%) is worse than 75.24% of its industry peers.
With a Return On Equity value of 0.64%, AR is not doing good in the industry: 72.82% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 1.27%, AR is doing worse than 78.64% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AR is significantly below the industry average of 28.71%.
The 3 year average ROIC (7.59%) for AR is well above the current ROIC(1.27%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.34% | ||
| ROE | 0.64% | ||
| ROIC | 1.27% |
ROA(3y)4.63%
ROA(5y)0.4%
ROE(3y)9.45%
ROE(5y)0.3%
ROIC(3y)7.59%
ROIC(5y)N/A
1.3 Margins
AR has a Profit Margin of 1.03%. This is in the lower half of the industry: AR underperforms 72.33% of its industry peers.
AR has a Operating Margin of 4.25%. This is in the lower half of the industry: AR underperforms 73.30% of its industry peers.
AR's Operating Margin has declined in the last couple of years.
AR has a Gross Margin of 70.43%. This is in the better half of the industry: AR outperforms 77.18% of its industry peers.
In the last couple of years the Gross Margin of AR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.25% | ||
| PM (TTM) | 1.03% | ||
| GM | 70.43% |
OM growth 3YN/A
OM growth 5Y-4.85%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.86%
GM growth 5Y3.36%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AR is destroying value.
AR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AR has been reduced compared to 5 years ago.
AR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.61, we must say that AR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AR (1.61) is comparable to the rest of the industry.
AR has a debt to FCF ratio of 21.62. This is a negative value and a sign of low solvency as AR would need 21.62 years to pay back of all of its debts.
AR has a worse Debt to FCF ratio (21.62) than 61.16% of its industry peers.
AR has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of AR (0.23) is better than 65.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 21.62 | ||
| Altman-Z | 1.61 |
ROIC/WACC0.14
WACC9.01%
2.3 Liquidity
AR has a Current Ratio of 0.28. This is a bad value and indicates that AR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of AR (0.28) is worse than 94.66% of its industry peers.
AR has a Quick Ratio of 0.28. This is a bad value and indicates that AR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AR (0.28) is worse than 93.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
AR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -100.75%.
Measured over the past years, AR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.50% on average per year.
Looking at the last year, AR shows a very negative growth in Revenue. The Revenue has decreased by -21.93% in the last year.
The Revenue has been growing slightly by 2.49% on average over the past years.
EPS 1Y (TTM)-100.75%
EPS 3YN/A
EPS 5Y-14.5%
EPS Q2Q%-250%
Revenue 1Y (TTM)-21.93%
Revenue growth 3Y10.27%
Revenue growth 5Y2.49%
Sales Q2Q%-6.84%
3.2 Future
Based on estimates for the next years, AR will show a very strong growth in Earnings Per Share. The EPS will grow by 31.33% on average per year.
AR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.22% yearly.
EPS Next Y-81.04%
EPS Next 2Y108.86%
EPS Next 3Y80.75%
EPS Next 5Y31.33%
Revenue Next Year-6.17%
Revenue Next 2Y4.48%
Revenue Next 3Y6.03%
Revenue Next 5Y6.22%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for AR. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 17.27 indicates a rather expensive valuation of AR.
The rest of the industry has a similar Price/Forward Earnings ratio as AR.
AR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.27 |
4.2 Price Multiples
72.82% of the companies in the same industry are cheaper than AR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AR is valued a bit more expensive than 65.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 165.26 | ||
| EV/EBITDA | 16.22 |
4.3 Compensation for Growth
AR's earnings are expected to grow with 80.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y108.86%
EPS Next 3Y80.75%
5. Dividend
5.1 Amount
No dividends for AR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ANTERO RESOURCES CORP
NYSE:AR (1/21/2025, 8:04:00 PM)
After market: 39.42 -0.51 (-1.28%)39.93
-0.53 (-1.31%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners85.05%
Inst Owner Change-0.2%
Ins Owners5.8%
Ins Owner Change-0.02%
Market Cap12.42B
Analysts78.06
Price Target37.4 (-6.34%)
Short Float %2.85%
Short Ratio2.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-84.93%
Min EPS beat(2)-165.08%
Max EPS beat(2)-4.77%
EPS beat(4)2
Avg EPS beat(4)-11.45%
Min EPS beat(4)-165.08%
Max EPS beat(4)116.92%
EPS beat(8)5
Avg EPS beat(8)3.83%
EPS beat(12)6
Avg EPS beat(12)-2.65%
EPS beat(16)7
Avg EPS beat(16)-16.32%
Revenue beat(2)0
Avg Revenue beat(2)-1.63%
Min Revenue beat(2)-2.04%
Max Revenue beat(2)-1.21%
Revenue beat(4)1
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)2.32%
Revenue beat(8)4
Avg Revenue beat(8)4.56%
Revenue beat(12)7
Avg Revenue beat(12)6.45%
Revenue beat(16)8
Avg Revenue beat(16)-1.43%
PT rev (1m)5.34%
PT rev (3m)5.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)22.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-79.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.25%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.27 | ||
| P/S | 2.86 | ||
| P/FCF | 165.26 | ||
| P/OCF | 14.06 | ||
| P/B | 1.78 | ||
| P/tB | 1.78 | ||
| EV/EBITDA | 16.22 |
EPS(TTM)-0.01
EYN/A
EPS(NY)2.31
Fwd EY5.79%
FCF(TTM)0.24
FCFY0.61%
OCF(TTM)2.84
OCFY7.11%
SpS13.98
BVpS22.43
TBVpS22.43
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.34% | ||
| ROE | 0.64% | ||
| ROCE | 1.55% | ||
| ROIC | 1.27% | ||
| ROICexc | 1.27% | ||
| ROICexgc | 1.27% | ||
| OM | 4.25% | ||
| PM (TTM) | 1.03% | ||
| GM | 70.43% | ||
| FCFM | 1.73% |
ROA(3y)4.63%
ROA(5y)0.4%
ROE(3y)9.45%
ROE(5y)0.3%
ROIC(3y)7.59%
ROIC(5y)N/A
ROICexc(3y)7.59%
ROICexc(5y)N/A
ROICexgc(3y)7.59%
ROICexgc(5y)N/A
ROCE(3y)9.28%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y1.23%
ROICexc growth 3YN/A
ROICexc growth 5Y1.23%
OM growth 3YN/A
OM growth 5Y-4.85%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.86%
GM growth 5Y3.36%
F-Score3
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 21.62 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 116.92% | ||
| Cap/Sales | 18.58% | ||
| Interest Coverage | 1.5 | ||
| Cash Conversion | 100.82% | ||
| Profit Quality | 167.06% | ||
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 | ||
| Altman-Z | 1.61 |
F-Score3
WACC9.01%
ROIC/WACC0.14
Cap/Depr(3y)132.35%
Cap/Depr(5y)130.58%
Cap/Sales(3y)17.63%
Cap/Sales(5y)22.04%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-100.75%
EPS 3YN/A
EPS 5Y-14.5%
EPS Q2Q%-250%
EPS Next Y-81.04%
EPS Next 2Y108.86%
EPS Next 3Y80.75%
EPS Next 5Y31.33%
Revenue 1Y (TTM)-21.93%
Revenue growth 3Y10.27%
Revenue growth 5Y2.49%
Sales Q2Q%-6.84%
Revenue Next Year-6.17%
Revenue Next 2Y4.48%
Revenue Next 3Y6.03%
Revenue Next 5Y6.22%
EBIT growth 1Y-86.85%
EBIT growth 3YN/A
EBIT growth 5Y-2.48%
EBIT Next Year124.83%
EBIT Next 3Y70.45%
EBIT Next 5Y30.7%
FCF growth 1Y-96.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-71.04%
OCF growth 3Y10.58%
OCF growth 5Y-13.73%