PrimeEnergy Resources Corporation Fundamental Analysis
PrimeEnergy Resources Corporation Fundamental Analysis
PrimeEnergy Resources Corporation (PNRG) shows moderate financial fundamentals with a PE ratio of 13.97, profit margin of 12.10%, and ROE of 10.10%. The company generates $0.2B in annual revenue with weak year-over-year growth of -20.52%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PNRG's fundamental strength across five key dimensions:
Efficiency Score
WeakPNRG struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPNRG trades at attractive valuation levels.
Growth Score
WeakPNRG faces weak or negative growth trends.
Financial Health Score
ExcellentPNRG maintains a strong and stable balance sheet.
Profitability Score
WeakPNRG struggles to sustain strong margins.
Key Financial Metrics
Is PNRG Expensive or Cheap?
P/E Ratio
PNRG trades at 13.97 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PNRG's PEG of -0.25 indicates potential undervaluation.
Price to Book
The market values PrimeEnergy Resources Corporation at 1.38 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.17 times EBITDA. This is generally considered low.
How Well Does PNRG Make Money?
Net Profit Margin
For every $100 in sales, PrimeEnergy Resources Corporation keeps $12.10 as profit after all expenses.
Operating Margin
Core operations generate 14.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.10 in profit for every $100 of shareholder equity.
ROA
PrimeEnergy Resources Corporation generates $6.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PrimeEnergy Resources Corporation generates strong operating cash flow of $73.94M, reflecting robust business health.
Free Cash Flow
PrimeEnergy Resources Corporation generates strong free cash flow of $31.53M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $19.48 in free cash annually.
FCF Yield
PNRG converts 10.63% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.97
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.25
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How PNRG Stacks Against Its Sector Peers
| Metric | PNRG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.97 | 21.16 | Better (Cheaper) |
| ROE | 10.10% | 984.00% | Weak |
| Net Margin | 12.10% | -59500.00% (disorted) | Strong |
| Debt/Equity | 0.03 | -0.48 (disorted) | Distorted |
| Current Ratio | 1.06 | 4.98 | Neutral |
| ROA | 6.68% | -11018321.00% (disorted) | Weak |
PNRG outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews PrimeEnergy Resources Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
326.05%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
1465.28%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
609.74%
Industry Style: Cyclical, Value, Commodity
High Growth