Today is Thursday, May 7, 2020, and this is your daily energy stocks roundup. Today we're looking at the valuations of Baytex Energy Corporation (NYSE: BTE), PBF Logistics LP (NYSE: PBFX), and Diamond S Shipping (NYSE: DSSI).
Baytex Energy Corporation (NYSE: BTE) is a $168.2 million company today with a one-year return of -85.58%. 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 1.66 is 68.39% lower than the industry average of 5.251. 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.
Baytex Energy Corporation's enterprise-value-to-free-cash-flow (EV/FCF) ratio of 7.515 is 30.03% lower than its industry average of 10.74. 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 Baytex Energy Corporation has decreased by 9.66% 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.
Baytex Energy Corporation has scored favorably on 3 of our 3 valuation metrics. With this in mind, we believe the stock is a great value.
PBF Logistics LP (NYSE: PBFX) is a $504.5 million company today with a one-year return of -60.48%. 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 4.776 is 55.36% lower than the industry average of 10.7. That's good.
PBF Logistics LP's enterprise-value-to-free-cash-flow (EV/FCF) ratio of 10.95 is 68.35% lower than its industry average of 34.6. That's good.
The debt-to-equity (D/E) ratio of PBF Logistics LP has increased by 118.62% over the last year. That's not good.
PBF Logistics LP has scored favorably on 2 of our 3 valuation metrics. With this in mind, we believe the stock is a good value.
Diamond S Shipping (NYSE: DSSI) is a $439.62 million company today with a one-year return of -15.34%. 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 38.81 is 262.71% higher than the industry average of 10.7. That's not good.
Diamond S Shipping's enterprise-value-to-free-cash-flow (EV/FCF) ratio of -5.391 is below zero. That's not good.
The debt-to-equity (D/E) ratio of Diamond S Shipping has decreased by 5.93% over the last year. That's good.
Diamond S Shipping has scored favorably on 1 of our 3 valuation metrics. With this in mind, we believe the stock is slightly overvalued.
To summarize, we believe Baytex Energy Corporation (NYSE: BTE) is a great value, PBF Logistics LP (NYSE: PBFX) is a good value, and Diamond S Shipping (NYSE: DSSI) is slightly overvalued.
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