Resolute Energy Corp.

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REN : NYSE : Energy Minerals
$35.14 -0.48 | -1.35%
Today's Range: 34.54 - 36.49
Avg. Daily Volume: 628800.0
02/16/18 - 4:01 PM ET

Financial Analysis


RESOLUTE ENERGY CORP's gross profit margin for the third quarter of its fiscal year 2017 has significantly increased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. RESOLUTE ENERGY CORP has very weak liquidity. Currently, the Quick Ratio is 0.40 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 78.24% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q3 FY17 Q3 FY16
Net Sales ($mil)81.5547.42
EBITDA ($mil)33.152.8
EBIT ($mil)7.63-9.67
Net Income ($mil)-14.6-18.86


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)0.890.91
Total Assets ($mil)792.32294.87
Total Debt ($mil)645.19518.21
Equity ($mil)-73.77-339.14


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin52.3521.02
EBITDA Margin40.645.91
Operating Margin9.35-20.39
Sales Turnover0.350.44
Return on Assets-2.59-79.1
Return on Equity0.00.0
Debt Q3 FY17 Q3 FY16
Current Ratio0.420.81
Debt/Capital1.132.89
Interest Expense13.2213.62
Interest Coverage0.58-0.71


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)22.4915.46
Div / share0.00.0
EPS-0.71-1.24
Book value / share-3.28-21.93
Institutional Own % n/a n/a
Avg Daily Volume652018.0648457.0

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Along with this, the price-to-book ratio is also meaningless due to a negative book value for the company, making any comparisons useless. The current price-to-sales ratio is above both the S&P 500 average and the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
REN NM Peers 253.23   REN 6.14 Peers 9.01

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

REN's P/E is negative making this valuation measure meaningless.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

REN is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
REN 8.25 Peers 34.62   REN NA Peers 0.68

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

REN is trading at a valuation on par with its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
REN NM Peers 5.34   REN 90.57 Peers 282.80

Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

REN's P/B is negative making this valuation measure meaningless.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, REN is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
REN 2.46 Peers 2.02   REN 115.23 Peers 29.17

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

REN is trading at a premium to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

REN has a sales growth rate that significantly exceeds its peers.

 

 

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