Energen Stock Analysis, Valuation (NYSE:EGN)
Take a look at Amigobulls Energen stock analysis video. This is our analyst opinion covering the buy and sell arguments for EGN 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.
Energen Corporation Stock Rating 3.3/5
Amigobulls EGN stock analysis uses latest quarter 2018 Q2 financial data like Energen revenue growth, profit margins and cash flows. Energen valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Based on a company's historical fundamentals we arrive at Energen stock rating which is indicative of the company's financial performance.
Should you buy EGN stock?
- Energen's revenue growth came in at 47.8% in 2018-03.
- Energen's average operating margin of 21.94 was exceptional.
- With a debt/equity ratio of 0.21, Energen is comparatively less leveraged than its peers in the Oils-Energy sector.
- The operating cash flow looks good at 2.151 times the net income.
- Energen generates a high return on invested capital of 4.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Energen at 11.9.
- The company has a good Free Cash Flow (FCF) margin of 16.
Should you sell EGN stock?
- The company saw an average annual sales decline of -7.7 in sales over the last 5 years.
- Trading at a PE ratio of 31.8, EGN stock is overvalued in comparison to sector average multiple of 20.4.
- The company is trading at a price to sales multiple of 6.1, which is overvalued in comparison to the Oils-Energy sector average multiple of 1.6.
Amigobulls Energen stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.
Among the financials of the company, Energen revenue growth along with the profit or net income give a clear picture of the financial health. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Energen stock.