Callon Petroleum Stock Analysis, Valuation (NYSE:CPE)

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$14.01 $0.19 (1.37%) CPE stock closing price Apr 25, 2018 (Closing)
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Callon Petroleum
Updated on : Apr 25, 2018
previous close
CPE 14 (0%)
S&P 500 2639.4 (0%)
Closing Price On: Apr 25, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Oil and Gas-US exploration and production
Sector :
Oils-Energy
5 Quarter Revenue
Revenue Growth
2017-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
27%
Operating Profit
Operating Margin:
38.6%
Sector Average:
5.8%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
620.2M
Debt/Equity Ratio:
 0.33
Compared to the industry
Cash Flow
Operating cash flow:
$80.2M
Net Income:
$22.8M
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
Low Debt Burden
Cash Flow
FCF Margin
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
CPE PS :
7.7
Industry PS :
1.7
Sector:   Oils-Energy.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
6.5%
Return on Equity:
6.7%
Free Cash Flow Margin:
-43.9%
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Callon Petroleum Stock Analysis

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Watch the robo advisor video of Callon Petroleum stock analysis on Amigobulls. Our analyst opinion covering the buy and sell arguments for CPE stock is shown in the video.

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.

Callon Petroleum Company Stock Rating 3.2/5

Amigobulls CPE stock analysis uses latest quarter 2017 Q4 financial data like Callon Petroleum revenue growth, profit margins and cash flows. We also use relative valuation metrics like PE ratio and price to sales ratio for Callon Petroleum valuation analysis. Callon Petroleum stock rating is our opinion about the business fundamentals of the company.

Should you buy CPE stock?

  • Callon Petroleum's revenue growth came in at 71.1% in 2017 Q4.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 27%.
  • Callon Petroleum had a healthy average operating margin of 38.6% over the last 4 quarters.
  • Net margins stood at a healthy 32.9% (average) for Callon Petroleum in the Trailing Twelve Months.
  • With a debt/equity ratio of  0.33, Callon Petroleum is comparatively less leveraged than its peers in the Oils-Energy sector.
  • The company has an operating cash flow which is 3.5 times the net income. We see this as a positive signal.
  • Callon Petroleum has an attractive ROIC (Return on Invested Capital) of 6.5%

Should you sell CPE stock?

  • The company is trading at a price to sales multiple of 7.7, which is higher in comparison to the Oil and Gas-US exploration and production industry average of 1.7, making CPE stock expensive.
  • The company has a negative free cash flow margin of -43.9%.

Comments on this video and Callon Petroleum stock

Amigobulls Callon Petroleum stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of CPE stock. Fundamentals of a company give detailed information which helps in making invesment decisions.

While doing a study of the company financials, Callon Petroleum revenue growth and profit or net income are two main metrics which help in identifying whether CPE stock is overvalued or undervalued. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.