PERMIAN RESOURCES CORP (PR) Stock Fundamental Analysis
NYSE:PR - New York Stock Exchange, Inc. - US71424F1057 - Common Stock - Currency: USD
Taking everything into account, PR scores 6 out of 10 in our fundamental rating. PR was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. PR has a medium profitability rating, but doesn't score so well on its financial health evaluation. PR is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
In the past year PR was profitable.
PR had a positive operating cash flow in the past year.
PR had positive earnings in 4 of the past 5 years.
In the past 5 years PR always reported a positive cash flow from operatings.
1.2 Ratios
PR has a Return On Assets (6.16%) which is comparable to the rest of the industry.
PR has a Return On Equity (11.37%) which is comparable to the rest of the industry.
PR's Return On Invested Capital of 10.09% is fine compared to the rest of the industry. PR outperforms 67.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PR is significantly below the industry average of 28.74%.
The last Return On Invested Capital (10.09%) for PR is above the 3 year average (9.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 11.37% | ||
| ROIC | 10.09% |
ROA(3y)4.29%
ROA(5y)-0.92%
ROE(3y)10.03%
ROE(5y)0.87%
ROIC(3y)9.34%
ROIC(5y)N/A
1.3 Margins
PR has a better Profit Margin (21.20%) than 69.95% of its industry peers.
PR's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 37.50%, PR is doing good in the industry, outperforming 75.86% of the companies in the same industry.
PR's Operating Margin has improved in the last couple of years.
PR has a better Gross Margin (79.34%) than 89.16% of its industry peers.
PR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.5% | ||
| PM (TTM) | 21.2% | ||
| GM | 79.34% |
OM growth 3YN/A
OM growth 5Y3.6%
PM growth 3YN/A
PM growth 5Y-7.42%
GM growth 3Y2.59%
GM growth 5Y-0.97%
2. Health
2.1 Basic Checks
PR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
PR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for PR has been increased compared to 5 years ago.
The debt/assets ratio for PR is higher compared to a year ago.
2.2 Solvency
PR has an Altman-Z score of 1.59. This is a bad value and indicates that PR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.59, PR is in line with its industry, outperforming 51.23% of the companies in the same industry.
PR has a debt to FCF ratio of 3.09. This is a good value and a sign of high solvency as PR would need 3.09 years to pay back of all of its debts.
PR has a Debt to FCF ratio of 3.09. This is in the better half of the industry: PR outperforms 68.97% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that PR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.47, PR is in line with its industry, outperforming 46.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.09 | ||
| Altman-Z | 1.59 |
ROIC/WACC1.2
WACC8.41%
2.3 Liquidity
A Current Ratio of 0.68 indicates that PR may have some problems paying its short term obligations.
The Current ratio of PR (0.68) is worse than 80.30% of its industry peers.
A Quick Ratio of 0.68 indicates that PR may have some problems paying its short term obligations.
PR's Quick ratio of 0.68 is on the low side compared to the rest of the industry. PR is outperformed by 74.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
PR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 75.53%, which is quite impressive.
Measured over the past years, PR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.54% on average per year.
Looking at the last year, PR shows a very strong growth in Revenue. The Revenue has grown by 74.92%.
The Revenue has been growing by 28.49% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)75.53%
EPS 3YN/A
EPS 5Y8.54%
EPS Q2Q%307.69%
Revenue 1Y (TTM)74.92%
Revenue growth 3Y75.18%
Revenue growth 5Y28.49%
Sales Q2Q%60.25%
3.2 Future
PR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.09% yearly.
The Revenue is expected to grow by 21.08% on average over the next years. This is a very strong growth
EPS Next Y26.94%
EPS Next 2Y18.63%
EPS Next 3Y11.9%
EPS Next 5Y2.09%
Revenue Next Year61.58%
Revenue Next 2Y31.46%
Revenue Next 3Y21.08%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
PR is valuated reasonably with a Price/Earnings ratio of 8.50.
Based on the Price/Earnings ratio, PR is valued a bit cheaper than the industry average as 71.92% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.62. PR is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.38, the valuation of PR can be described as reasonable.
Based on the Price/Forward Earnings ratio, PR is valued a bit cheaper than 73.40% of the companies in the same industry.
PR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.5 | ||
| Fwd PE | 8.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PR is valued a bit cheaper than the industry average as 72.41% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PR is valued a bit cheaper than the industry average as 75.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.28 | ||
| EV/EBITDA | 4.38 |
4.3 Compensation for Growth
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 PR may justify a higher PE ratio.
PEG (NY)0.32
PEG (5Y)1
EPS Next 2Y18.63%
EPS Next 3Y11.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.10%, PR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.67, PR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, PR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
5.2 History
PR has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
41.29% of the earnings are spent on dividend by PR. This is a bit on the high side, but may be sustainable.
DP41.29%
EPS Next 2Y18.63%
EPS Next 3Y11.9%
14.03
-0.6 (-4.1%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners89.11%
Inst Owner Change-70.43%
Ins Owners0.58%
Ins Owner Change-0.05%
Market Cap11.27B
Analysts83.33
Price Target19.77 (40.91%)
Short Float %5.06%
Short Ratio4.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
Yearly Dividend0.34
Dividend Growth(5Y)N/A
DP41.29%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)28.66%
Min EPS beat(2)-7.14%
Max EPS beat(2)64.46%
EPS beat(4)2
Avg EPS beat(4)18.81%
Min EPS beat(4)-34.25%
Max EPS beat(4)64.46%
EPS beat(8)2
Avg EPS beat(8)-10.98%
EPS beat(12)5
Avg EPS beat(12)-1.69%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.82%
Min Revenue beat(2)-3.53%
Max Revenue beat(2)-2.11%
Revenue beat(4)2
Avg Revenue beat(4)-1.24%
Min Revenue beat(4)-3.53%
Max Revenue beat(4)0.42%
Revenue beat(8)2
Avg Revenue beat(8)-3.37%
Revenue beat(12)6
Avg Revenue beat(12)1.08%
Revenue beat(16)10
Avg Revenue beat(16)3.65%
PT rev (1m)2.57%
PT rev (3m)4.14%
EPS NQ rev (1m)0.69%
EPS NQ rev (3m)-4.59%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)3.73%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-1.11%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.5 | ||
| Fwd PE | 8.38 | ||
| P/S | 2.33 | ||
| P/FCF | 8.28 | ||
| P/OCF | 3.33 | ||
| P/B | 1.25 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 4.38 |
EPS(TTM)1.65
EY11.76%
EPS(NY)1.67
Fwd EY11.94%
FCF(TTM)1.69
FCFY12.08%
OCF(TTM)4.22
OCFY30.04%
SpS6.01
BVpS11.2
TBVpS11.2
PEG (NY)0.32
PEG (5Y)1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 11.37% | ||
| ROCE | 11.8% | ||
| ROIC | 10.09% | ||
| ROICexc | 10.28% | ||
| ROICexgc | 10.28% | ||
| OM | 37.5% | ||
| PM (TTM) | 21.2% | ||
| GM | 79.34% | ||
| FCFM | 28.2% |
ROA(3y)4.29%
ROA(5y)-0.92%
ROE(3y)10.03%
ROE(5y)0.87%
ROIC(3y)9.34%
ROIC(5y)N/A
ROICexc(3y)9.39%
ROICexc(5y)N/A
ROICexgc(3y)9.39%
ROICexgc(5y)N/A
ROCE(3y)10.92%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y4.11%
ROICexc growth 3YN/A
ROICexc growth 5Y4.11%
OM growth 3YN/A
OM growth 5Y3.6%
PM growth 3YN/A
PM growth 5Y-7.42%
GM growth 3Y2.59%
GM growth 5Y-0.97%
F-Score4
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.09 | ||
| Debt/EBITDA | 1.21 | ||
| Cap/Depr | 122.17% | ||
| Cap/Sales | 41.95% | ||
| Interest Coverage | 6.95 | ||
| Cash Conversion | 97.65% | ||
| Profit Quality | 133.01% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 1.59 |
F-Score4
WACC8.41%
ROIC/WACC1.2
Cap/Depr(3y)146.64%
Cap/Depr(5y)144.71%
Cap/Sales(3y)39.15%
Cap/Sales(5y)52.8%
Profit Quality(3y)133.86%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)75.53%
EPS 3YN/A
EPS 5Y8.54%
EPS Q2Q%307.69%
EPS Next Y26.94%
EPS Next 2Y18.63%
EPS Next 3Y11.9%
EPS Next 5Y2.09%
Revenue 1Y (TTM)74.92%
Revenue growth 3Y75.18%
Revenue growth 5Y28.49%
Sales Q2Q%60.25%
Revenue Next Year61.58%
Revenue Next 2Y31.46%
Revenue Next 3Y21.08%
Revenue Next 5YN/A
EBIT growth 1Y62.45%
EBIT growth 3YN/A
EBIT growth 5Y33.12%
EBIT Next Year225.58%
EBIT Next 3Y52.29%
EBIT Next 5Y36.6%
FCF growth 1Y156.69%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y226.9%
OCF growth 3Y134.62%
OCF growth 5Y27%