PERMIAN RESOURCES CORP (PR) Stock Fundamental Analysis
NYSE:PR - New York Stock Exchange, Inc. - US71424F1057 - Common Stock
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. There are concerns on the financial health of PR while its profitability can be described as average. PR has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
1. Profitability
1.1 Basic Checks
PR had positive earnings in the past year.
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's Return On Assets of 6.16% is in line compared to the rest of the industry. PR outperforms 57.28% of its industry peers.
Looking at the Return On Equity, with a value of 11.37%, PR is in line with its industry, outperforming 51.46% of the companies in the same industry.
PR has a better Return On Invested Capital (10.09%) than 66.50% 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 28.71%.
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's Profit Margin of 21.20% is fine compared to the rest of the industry. PR outperforms 68.45% 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 76.21% of the companies in the same industry.
PR's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 79.34%, PR belongs to the best of the industry, outperforming 89.32% of the companies in the same industry.
In the last couple of years the Gross Margin of PR has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PR is still creating some value.
The number of shares outstanding for PR has been increased compared to 1 year ago.
PR has more shares outstanding than it did 5 years ago.
PR has a worse debt/assets ratio than last year.
2.2 Solvency
PR has an Altman-Z score of 1.71. This is a bad value and indicates that PR is not financially healthy and even has some risk of bankruptcy.
PR has a Altman-Z score (1.71) which is in line with its industry peers.
The Debt to FCF ratio of PR is 3.09, which is a good value as it means it would take PR, 3.09 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PR (3.09) is better than 70.87% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that PR is not too dependend on debt financing.
PR has a Debt to Equity ratio (0.47) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.09 | ||
| Altman-Z | 1.71 |
ROIC/WACC1.21
WACC8.35%
2.3 Liquidity
A Current Ratio of 0.68 indicates that PR may have some problems paying its short term obligations.
PR has a Current ratio of 0.68. This is in the lower half of the industry: PR underperforms 79.61% of its industry peers.
PR has a Quick Ratio of 0.68. This is a bad value and indicates that PR is not financially healthy enough and could expect problems in meeting its short term obligations.
PR has a worse Quick ratio (0.68) than 72.82% 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.
The Earnings Per Share has been growing by 8.54% on average over the past years. This is quite good.
The Revenue has grown by 74.92% in the past year. This is a very strong growth!
Measured over the past years, PR shows a very strong growth in Revenue. The Revenue has been growing by 28.49% on average per year.
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
The Earnings Per Share is expected to grow by 2.09% on average over the next years.
The Revenue is expected to grow by 21.87% on average over the next years. This is a very strong growth
EPS Next Y27.24%
EPS Next 2Y14.3%
EPS Next 3Y10.65%
EPS Next 5Y2.09%
Revenue Next Year61.89%
Revenue Next 2Y31.34%
Revenue Next 3Y21.87%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.55 indicates a reasonable valuation of PR.
69.90% of the companies in the same industry are more expensive than PR, based on the Price/Earnings ratio.
PR is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.14, which indicates a very decent valuation of PR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PR indicates a somewhat cheap valuation: PR is cheaper than 66.99% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. PR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.55 | ||
| Fwd PE | 10.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PR is valued a bit cheaper than the industry average as 69.90% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PR indicates a somewhat cheap valuation: PR is cheaper than 71.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.3 | ||
| EV/EBITDA | 4.84 |
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)0.35
PEG (5Y)1.12
EPS Next 2Y14.3%
EPS Next 3Y10.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.79%, PR has a reasonable but not impressive dividend return.
PR's Dividend Yield is comparable with the industry average which is at 6.39.
Compared to an average S&P500 Dividend Yield of 2.28, PR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
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 2Y14.3%
EPS Next 3Y10.65%
PERMIAN RESOURCES CORP
NYSE:PR (1/21/2025, 8:21:29 PM)
After market: 15.88 +0.12 (+0.76%)15.76
-0.24 (-1.5%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners79.35%
Inst Owner Change0.25%
Ins Owners0.58%
Ins Owner Change-0.05%
Market Cap12.66B
Analysts83.57
Price Target19.27 (22.27%)
Short Float %5.43%
Short Ratio4.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
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)0.03%
PT rev (3m)-3.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-19.51%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.55 | ||
| Fwd PE | 10.14 | ||
| P/S | 2.62 | ||
| P/FCF | 9.3 | ||
| P/OCF | 3.74 | ||
| P/B | 1.41 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 4.84 |
EPS(TTM)1.65
EY10.47%
EPS(NY)1.55
Fwd EY9.87%
FCF(TTM)1.69
FCFY10.75%
OCF(TTM)4.22
OCFY26.75%
SpS6.01
BVpS11.2
TBVpS11.2
PEG (NY)0.35
PEG (5Y)1.12
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 | 1.71 |
F-Score4
WACC8.35%
ROIC/WACC1.21
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 Y27.24%
EPS Next 2Y14.3%
EPS Next 3Y10.65%
EPS Next 5Y2.09%
Revenue 1Y (TTM)74.92%
Revenue growth 3Y75.18%
Revenue growth 5Y28.49%
Sales Q2Q%60.25%
Revenue Next Year61.89%
Revenue Next 2Y31.34%
Revenue Next 3Y21.87%
Revenue Next 5YN/A
EBIT growth 1Y62.45%
EBIT growth 3YN/A
EBIT growth 5Y33.12%
EBIT Next Year225.15%
EBIT Next 3Y53.01%
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%