Concho Resources Stock Analysis, Valuation (NYSE:CXO)

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$157.45 $0.62 (0.4%) CXO stock closing price Apr 19, 2018 (Closing)
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Concho Resources
Updated on : Apr 19, 2018
previous close
CXO 157.5 (0%)
S&P 500 2693.1 (0%)
Closing Price On: Apr 19, 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:
6.2%
Operating Profit
Operating Margin:
41.5%
Sector Average:
5.8%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
2.81B
Debt/Equity Ratio:
 0.32
Compared to the industry
Cash Flow
Operating cash flow:
$510M
Net Income:
$267M
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
Low Debt Burden
Cash Flow
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
CXO PS :
9
Industry PS :
1.8
Sector:   Oils-Energy.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
6.3%
Return on Equity:
11.3%
Free Cash Flow Margin:
112.4%
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Concho Resources Stock Analysis

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Watch the robo advisor video of Concho Resources stock analysis on Amigobulls. Our CXO analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

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.

Concho Resources Inc Stock Rating 3.5/5

Amigobulls CXO stock analysis takes into account various financial ratios like relative valuation, Concho Resources revenue, growth and return on equity based on latest quarter 2017 Q4 financial statements. We also check Concho Resources dividend performance. We also use relative valuation metrics like PE ratio and price to sales ratio for Concho Resources valuation analysis. Concho Resources stock rating is our opinion about the business fundamentals of the company.

Should you buy CXO stock?

  • The Year Over Year (YoY) revenue growth for Concho Resources was 48.7% in 2017 Q4.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 6.2%.
  • The TTM operating margin was good at 41.5% for Concho Resources.
  • Net margins came in at average 37% for Concho Resources over the last twelve months.
  • Concho Resources has a lower debt burden than its peers in the Oils-Energy sector, with a debt/equity ratio of  0.32.
  • The operating cash flow looks good at 1.9 times the net income.
  • Concho Resources generates a high return on invested capital of 6.3%.
  • The LTM ROE of 11.3% for Concho Resources is attractive.
  • Concho Resources has a healthy FCF (Free Cash Flow) margin of 112.4%.

Should you sell CXO stock?

  • CXO stock is trading at a PE ratio of 74.3, which is worse than the industry average multiple of 24.2.
  • The company is trading at a price to sales multiple of 9, which is overvalued in comparison to the Oil and Gas-US exploration and production industry average multiple of 1.8.

Comments on this video and Concho Resources stock

Investors can use Amigobulls Concho Resources stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Company's fundamentals remain one of the key driver of CXO stock and helps investors in making good buy and sell decision.

While doing a study of the company financials, Concho Resources revenue growth and profit or net income are two main metrics which help in identifying whether CXO stock is overvalued or undervalued. Investors could make use of CXO technical analysis to check whether the fundamental story is reflected in the market sentiment.