Callon Petroleum Stock Analysis, Valuation (NYSE:CPE)

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$10.87 $0.01 (0.09%) CPE stock closing price Jul 17, 2018 (Closing)

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 2018 Q1 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 sales grew by 56.6% year on year in 2018-03.
  • Revenue growth has been tremendous with a compounded annual growth of 31.7 over the last 5 years.
  • Callon Petroleum had a healthy average operating margin of 41.25 over the last 4 quarters.
  • Net margins came in at average 31.3% for Callon Petroleum over the last twelve months.
  • Callon Petroleum has a lower debt burden than its peers in the Oils-Energy sector, with a debt/equity ratio of 0.35.
  • The company has an operating cash flow which is 1.6535 times the net income. We see this as a positive signal.
  • Callon Petroleum has an attractive ROIC (Return on Invested Capital) of 7.1

Should you sell CPE stock?

  • CPE stock is trading at a PS multiple of 5.3, which is a negative when compared to the Oils-Energy sector average multiple of 1.7.
  • Callon Petroleum has a negative FCF (Free Cash Flow) margin of -15.

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.