Ring Energy, Inc. [NYSE:REI]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding Ring Energy, Inc. [REI], the latest average analyst recommendation we can see is from the quarter closing in December. On average, stock market experts give REI an Outperform rating. Its stock price has been found in the range of 101.42 to 133.31. This is compared to its latest closing price of $5.70.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Ring Energy, Inc. [REI] is sitting at 2.00. This is compared to 1 month ago, when its average rating was 2.00.
For the quarter ending in Sep-18 Ring Energy, Inc. [REI] generated $0.03 billion in sales. That’s 5.57% higher than the average estimate of $0.03 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Thu 21 Mar (In 38 Days).
Fundamental Analysis of Ring Energy, Inc. [REI]
Now let’s turn to look at profitability: with a current Operating Margin for Ring Energy, Inc. [REI] sitting at +23.94 and its Gross Margin at +39.70, this company’s Net Margin is now 10.00%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 4.93, and its Return on Invested Capital has reached 3.40%. Its Return on Equity is 0.54, and its Return on Assets is 0.46. These metrics suggest that this Ring Energy, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
What about valuation? This company’s Enterprise Value to EBITDA is 9.27. The Enterprise Value to Sales for this firm is now 2.97. Ring Energy, Inc. [REI] has a Price to Book Ratio of 2.11, a Price to Cash Flow Ratio of 17.15 and P/E Ratio of 30.37. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Ring Energy, Inc. [REI] earns $1,802,695 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 7.50 and its Total Asset Turnover is 0.18. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.60 and its Current Ratio is 0.60. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Let’s now turn our attention to trading performance: Ring Energy, Inc. [REI] has 60.86M shares outstanding, amounting to a total market cap of $345.08M. Its stock price has been found in the range of 4.01 to 17.35. At its current price, it has moved by -67.32% from its 52-week high, and it has moved 41.40% from its 52-week low.
This stock’s Beta value is currently 1.41, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 45.24. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Ring Energy, Inc. [REI] a Reliable Buy?
Shares of Ring Energy, Inc. [REI], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.