Cimarex Energy Co. [NYSE:XEC]: Analyst Rating and Earnings
Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. For Cimarex Energy Co. [XEC], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in December. On average, stock market experts give XEC an Outperform rating. Its stock price has been found in the range of 20.50 to 43.63. This is compared to its latest closing price of $72.27.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Cimarex Energy Co. [XEC] is sitting at 2.04. This is compared to 1 month ago, when its average rating was 1.92.
For the quarter ending in Sep-18 Cimarex Energy Co. [XEC] generated $0.59 billion in sales. That’s 6.17% higher than the average estimate of $0.56 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.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Wed 20 Feb (In 8 Days).
Fundamental Analysis of Cimarex Energy Co. [XEC]
Now let’s turn to look at profitability: with a current Operating Margin for Cimarex Energy Co. [XEC] sitting at +38.10 and its Gross Margin at +48.32, this company’s Net Margin is now 28.80%. These measurements indicate that Cimarex Energy Co. [XEC] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 18.49, and its Return on Invested Capital has reached 11.70%. Its Return on Equity is 19.71, and its Return on Assets is 9.54. These metrics all suggest that Cimarex Energy Co. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Cimarex Energy Co. [XEC] has generated a Total Debt to Total Equity ratio of 57.90. Similarly, its Total Debt to Total Capital is 36.67, while its Total Debt to Total Assets stands at 29.49. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 57.90, and its Long-Term Debt to Total Capital is 36.67. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 6.57 and its Total Debt to EBITDA Value is 1.25. The Enterprise Value to Sales for this firm is now 3.46, and its Total Debt to Enterprise Value stands at 0.12. Cimarex Energy Co. [XEC] has a Price to Book Ratio of 4.53, a Price to Cash Flow Ratio of 10.40 and P/E Ratio of 11.76. These metrics all suggest that Cimarex Energy Co. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Cimarex Energy Co. [XEC] earns $2,107,966 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.22 and its Total Asset Turnover is 0.38. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.30 and its Current Ratio is 1.38. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Cimarex Energy Co. [XEC] has 97.03M shares outstanding, amounting to a total market cap of $7.01B. Its stock price has been found in the range of 55.62 to 103.91. At its current price, it has moved by -29.47% from its 52-week high, and it has moved 31.77% from its 52-week low.
This stock’s Beta value is currently 1.38, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 50.15. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Cimarex Energy Co. [XEC] a Reliable Buy?
Shares of Cimarex Energy Co. [XEC], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.