Permian Resources Corp. (CDEV) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Chesapeake Energy Corp.

Coterra Energy, Inc.

National Fuel Gas Co.

Permian Resources Corp.

Matador Resources Co.

Chord Energy Corp.

APA Corp.

Civitas Resources, Inc.

Hess Corp.

Southwestern Energy Co.

Denbury, Inc.

Why is Permian Resources Corp. ?

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 45.92% and Operating profit at 139.47%

The company has declared Positive results for the last 7 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 3,745.32 MM
DEBT-EQUITY RATIO (HY) Lowest at 39.25 %
DIVIDEND PAYOUT RATIO(Y) Highest at 53.69%

With ROCE of 14.13%, it has a very attractive valuation with a 1.12 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -2.33%, its profits have risen by 16%

Below par performance in long term as well as near term

Along with generating -2.33% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Permian Resources Corp. should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Permian Resources Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Permian Resources Corp.

48.01%

-0.15

43.92%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

49.78%

EBIT Growth (5y)

101.99%

EBIT to Interest (avg)

6.06

Debt to EBITDA (avg)

1.68

Net Debt to Equity (avg)

0.36

Sales to Capital Employed (avg)

0.38

Tax Ratio

19.95%

Dividend Payout Ratio

22.13%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

12.72%

ROE (avg)

13.41%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.61

EV to EBIT

12.08

EV to EBITDA

5.43

EV to Capital Employed

1.45

EV to Sales

3.79

PEG Ratio

Dividend Yield

1.34%

ROCE (Latest)

12.02%

ROE (Latest)

11.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 3,556.26 MM

INTEREST COVERAGE RATIO(Q)

Highest at 1,326.07

DIVIDEND PAYOUT RATIO(Y)

Highest at 184.28%

CASH AND EQV(HY)

Highest at USD 562.81 MM

DEBT-EQUITY RATIO (HY)

Lowest at 35.84 %

DIVIDEND PER SHARE(HY)

Highest at USD 10.27

-6What is not working for the Company

ROCE(HY)

Lowest at 8.58%

RAW MATERIAL COST(Y)

Grown by 7.59% (YoY

NET PROFIT(Q)

Lowest at USD 170.79 MM

EPS(Q)

Lowest at USD 0.08

Here's what is working for Permian Resources Corp.

Operating Cash Flow

Highest at USD 3,556.26 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Highest at 1,326.07

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Cash and Eqv

Highest at USD 562.81 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 35.84 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at USD 10.27

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 184.28%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 526.91 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Permian Resources Corp.

Net Profit

Lowest at USD 170.79 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.08

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Raw Material Cost

Grown by 7.59% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 0.45 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income