Concho Resources Stock Analysis, Valuation (NYSE:CXO)
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 2018 Q2 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 54.7% in 2018-03.
- Long term revenue growth has been strong with a 5 year compounded annual growth of 9.2.
- The TTM operating margin was good at 35.43 for Concho Resources.
- Net margins stood at a healthy 39.1% (average) for Concho Resources in the Trailing Twelve Months.
- With its debt/equity ratio of 0.25, Concho Resources has a lower debt burden when compared to the Oils-Energy average.
- Concho Resources's return on invested capital of 5.8 is good.
- The LTM ROE of 12.8 for Concho Resources is attractive.
- The company has a healthy free cash flow margin of 27.8.
Should you sell CXO stock?
- The company has an operating cash flow which is 0.5844 times the net income. This is not a healthy sign.
- The CXO stock currently trades at a PE of 40.3, which is expensive, compared to the sector average of 20.8.
- The company is trading at a price to sales multiple of 6.1, which is higher in comparison to the Oils-Energy sector average of 1.6, making CXO stock expensive.
Concho Resources Related Company Stock Videos
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.