Cimarex Energy Co. [XEC] is following downward trend in the market concluded with the last trading session. The shares of the Basic Materials sector company has a current value of $40.09 after XEC shares went down by -1.96% during the last trading session. One of the reasons why Basic Materials stocks may go bearish is decreased momentum in the press.

Cimarex Energy Co. [NYSE:XEC]: Analyst Rating and Earnings

Its stock price has been found in the range of 37.19 to 76.74. This is compared to its latest closing price of $40.89.

Keep your eyes on this company’s next financial results, which are scheduled to be made public on Wed 19 Feb (In 6 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 +41.75 and its Gross Margin at +51.54, this company’s Net Margin is now 8.50%. 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 22.01, and its Return on Invested Capital has reached 16.90%. Its Return on Equity is 26.48, and its Return on Assets is 14.06. These metrics suggest that this Cimarex Energy Co. 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.

Turning to investigate this organization’s capital structure, Cimarex Energy Co. [XEC] has generated a Total Debt to Total Equity ratio of 44.70. Similarly, its Total Debt to Total Capital is 30.89, while its Total Debt to Total Assets stands at 24.56. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 14.31, and its Long-Term Debt to Total Capital is 44.70.

What about valuation? This company’s Enterprise Value to EBITDA is 3.28 and its Total Debt to EBITDA Value is 0.95. The Enterprise Value to Sales for this firm is now 2.21, and its Total Debt to Enterprise Value stands at 0.23. Cimarex Energy Co. [XEC] has a Price to Book Ratio of 1.77, a Price to Cash Flow Ratio of 3.73 and P/E Ratio of 7.97. 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 $2,449,232 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.12 and its Total Asset Turnover is 0.42. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.93 and its Current Ratio is 2.01. 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.

Cimarex Energy Co. [XEC] has 103.35M shares outstanding, amounting to a total market cap of $4.23B. Its stock price has been found in the range of 37.19 to 76.74. At its current price, it has moved down by -47.76% from its 52-week high, and it has moved up 7.80% from its 52-week low.

This stock’s Beta value is currently 1.44, which indicates that it is 3.69% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 29.05. This stock, according to these metrics, is currently Oversold.

Conclusion: Is Cimarex Energy Co. [XEC] a Reliable Buy?

Cimarex Energy Co. [XEC] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.