Cimarex Energy (XEC) Down In Post-Market Activity

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Cimarex Energy ( XEC) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Cimarex Energy as such a stock due to the following factors:

  • XEC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $136.3 million.
  • XEC is down 3.9% today from today's close.

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More details on XEC:

Cimarex Energy Co. operates as an independent oil and gas exploration and production company primarily in Texas, Oklahoma, and New Mexico. The company owns interests in 3,240 net productive oil and gas wells. The stock currently has a dividend yield of 0.6%. Currently there are 14 analysts that rate Cimarex Energy a buy, 2 analysts rate it a sell, and 7 rate it a hold.

The average volume for Cimarex Energy has been 1.2 million shares per day over the past 30 days. Cimarex Energy has a market cap of $10.1 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.93 and a short float of 5.3% with 3.38 days to cover. Shares are up 9.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Cimarex Energy as a hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.83 is somewhat weak and could be cause for future problems.
  • XEC, with its decline in revenue, slightly underperformed the industry average of 38.3%. Since the same quarter one year prior, revenues fell by 39.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The share price of CIMAREX ENERGY CO has not done very well: it is down 10.07% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CIMAREX ENERGY CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $113.17 million or 67.48% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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