Continental Resources Stock Analysis, Valuation (NYSE:CLR)
View the Continental Resources stock analysis video on Amigobulls. This is our analyst opinion covering the buy and sell arguments for CLR stock.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Continental Resources, Inc. Stock Rating 3.8/5
Amigobulls CLR stock analysis relies on business fundamentals such as Continental Resources revenue growth, profits and return on equity measures from the latest quarter 2018 Q2 earnings. We also use relative valuation metrics like PE ratio and price to sales ratio for Continental Resources valuation analysis. Our Continental Resources stock rating is based on company's fundamentals like balance sheet risk and cash flow position.
Should you buy CLR stock?
- The Year Over Year (YoY) revenue growth for Continental Resources was 66.5% in 2018-03.
- Long term revenue growth has been strong with a 5 year compounded annual growth of 4.4.
- The TTM operating margin was good at 21.05 for Continental Resources.
- The company has an operating cash flow which is 3.788 times the net income.
- Continental Resources's return on invested capital of 4.4 is good.
- The LTM ROE of 21.9 for Continental Resources is attractive.
- The company has a healthy free cash flow margin of 76.8.
Should you sell CLR stock?
- With a debt/equity ratio of 1.15, Continental Resources is highly leveraged in comparison to Oils-Energy peers.
- The CLR stock currently trades at a PE of 33, which is expensive, compared to the sector average of 20.8.
- The company is trading at a price to sales multiple of 5.8, which is higher in comparison to the Oils-Energy sector average of 1.6, making CLR stock expensive.
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Amigobulls Continental Resources stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of CLR stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.
While doing a study of the company financials, Continental Resources revenue growth and profit or net income are two main metrics which help in identifying whether CLR stock is overvalued or undervalued. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Continental Resources stock.