Today is Monday, March 16, 2020, and this is your daily energy stocks roundup. Today we're looking at the valuations of Southwestern Energy (NYSE: SWN), Dorian LPG (NYSE: LPG), and Plains All American Pipeline LP (NYSE: PAA).
Southwestern Energy (NYSE: SWN) is a $1.028 billion company today with a one-year return of -60.4%. Let's look at its price-to-earnings (P/E) ratio, its enterprise-value-to-free-cash-flow (EV/CF) ratio, and its debt-to-equity ratio to gauge whether or not it's a good investment.
The company's P/E ratio of 1.151 is 79.07% lower than the industry average of 5.498. That's good. A company's P/E ratio shows its price as a multiple of its earnings per share (EPS). A relatively low P/E ratio is generally an indicator that a company is undervalued.
Southwestern Energy's enterprise-value-to-free-cash-flow (EV/FCF) ratio of 3.314 is 76.65% lower than its industry average of 14.19. That's good.
A company's EV/FCF ratio measures its enterprise value (market cap adjusted for cash holdings and debt) against its free cash flow (how much money the company has after all of its cash outflows). A low EV/FCF ratio indicates that a company is performing efficiently, managing its debt well, and maintaining a strong cash position.
The debt-to-equity (D/E) ratio of Southwestern Energy has decreased by 29.62% over the last year. That's good.
A company's D/E ratio equals its total liabilities divided by its shareholder equity. It's a measure of a company's financial leverage. A declining D/E ratio indicates that a company is decreasing its debt burden over time, while a rising ratio indicates that a company is taking on more debt over time.
Southwestern Energy has scored favorably on 3 of our 3 valuation metrics. With this in mind, we believe the stock is a great value.
Dorian LPG (NYSE: LPG) is a $393.01 million company today with a one-year return of 62.34%. Judging by its price-to-earnings (P/E) ratio, its enterprise-value-to-free-cash-flow (EV/CF) ratio, and its debt-to-equity ratio, is it a good investment?
The company's P/E ratio of 5.984 is 38.28% lower than the industry average of 9.696. That's good.
Dorian LPG's enterprise-value-to-free-cash-flow (EV/FCF) ratio of 9.684 is 60.92% lower than its industry average of 24.78. That's good.
The debt-to-equity (D/E) ratio of Dorian LPG has decreased by 13.66% over the last year. That's good.
Dorian LPG has scored favorably on 3 of our 3 valuation metrics. With this in mind, we believe the stock is a great value.
Plains All American Pipeline LP (NYSE: PAA) is a $3.997 billion company today with a one-year return of -72.37%. Is it a good value based on its price-to-earnings (P/E) ratio, its enterprise-value-to-free-cash-flow (EV/CF) ratio, and its debt-to-equity ratio?
The company's P/E ratio of 2.08 is 78.55% lower than the industry average of 9.696. That's good.
Plains All American Pipeline LP's enterprise-value-to-free-cash-flow (EV/FCF) ratio of 11.08 is 55.29% lower than its industry average of 24.78. That's good.
The debt-to-equity (D/E) ratio of Plains All American Pipeline LP has decreased by 3.54% over the last year. That's good.
Plains All American Pipeline LP has scored favorably on 3 of our 3 valuation metrics. With this in mind, we believe the stock is a great value.
To summarize, we believe Southwestern Energy (NYSE: SWN) is a great value, Dorian LPG (NYSE: LPG) is a great value, and Plains All American Pipeline LP (NYSE: PAA) is a great value.
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