ANTERO RESOURCES CORP (AR) Stock Fundamental Analysis
USA - NYSE:AR - US03674X1063 - Common Stock
33.14 USD
+2.23 (+7.21%)
33.13 USD
-0.01 (-0.03%)
AR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. While AR is still in line with the averages on profitability rating, there are concerns on its financial health. AR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
AR had positive earnings in the past year.
In the past year AR had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: AR reported negative net income in multiple years.
AR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AR has a Return On Assets (4.24%) which is comparable to the rest of the industry.
AR has a Return On Equity (7.46%) which is comparable to the rest of the industry.
AR has a Return On Invested Capital (4.85%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for AR is significantly below the industry average of 21.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 7.46% | ||
| ROIC | 4.85% |
ROA(3y)5.12%
ROA(5y)0.87%
ROE(3y)10.6%
ROE(5y)1.31%
ROIC(3y)7.38%
ROIC(5y)N/A
1.3 Margins
AR's Profit Margin of 10.88% is in line compared to the rest of the industry. AR outperforms 58.57% of its industry peers.
AR's Operating Margin of 13.48% is in line compared to the rest of the industry. AR outperforms 45.71% of its industry peers.
AR's Operating Margin has declined in the last couple of years.
AR has a Gross Margin of 71.08%. This is amongst the best in the industry. AR outperforms 81.90% of its industry peers.
In the last couple of years the Gross Margin of AR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.48% | ||
| PM (TTM) | 10.88% | ||
| GM | 71.08% |
OM growth 3Y-21.28%
OM growth 5Y-30.85%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.22%
GM growth 5Y9.09%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AR is destroying value.
AR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AR has more shares outstanding
The debt/assets ratio for AR is higher compared to a year ago.
2.2 Solvency
AR has an Altman-Z score of 1.66. This is a bad value and indicates that AR is not financially healthy and even has some risk of bankruptcy.
AR has a Altman-Z score (1.66) which is comparable to the rest of the industry.
The Debt to FCF ratio of AR is 1.65, which is an excellent value as it means it would take AR, only 1.65 years of fcf income to pay off all of its debts.
AR has a better Debt to FCF ratio (1.65) than 85.24% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that AR is not too dependend on debt financing.
AR has a better Debt to Equity ratio (0.18) than 69.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 1.66 |
ROIC/WACC0.57
WACC8.53%
2.3 Liquidity
AR has a Current Ratio of 0.31. This is a bad value and indicates that AR is not financially healthy enough and could expect problems in meeting its short term obligations.
AR has a worse Current ratio (0.31) than 91.43% of its industry peers.
AR has a Quick Ratio of 0.31. This is a bad value and indicates that AR is not financially healthy enough and could expect problems in meeting its short term obligations.
AR's Quick ratio of 0.31 is on the low side compared to the rest of the industry. AR is outperformed by 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.31 |
3. Growth
3.1 Past
AR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18700.00%, which is quite impressive.
The earnings per share for AR have been decreasing by -37.61% on average. This is quite bad
Looking at the last year, AR shows a quite strong growth in Revenue. The Revenue has grown by 15.67% in the last year.
AR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.38% yearly.
EPS 1Y (TTM)18700%
EPS 3Y-37.61%
EPS 5YN/A
EPS Q2Q%225%
Revenue 1Y (TTM)15.67%
Revenue growth 3Y-2.17%
Revenue growth 5Y-0.38%
Sales Q2Q%15.72%
3.2 Future
AR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 43.23% yearly.
The Revenue is expected to grow by 43.58% on average over the next years. This is a very strong growth
EPS Next Y460.56%
EPS Next 2Y199.76%
EPS Next 3Y120.07%
EPS Next 5Y43.23%
Revenue Next Year19.3%
Revenue Next 2Y13.18%
Revenue Next 3Y9.51%
Revenue Next 5Y43.58%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.82, which indicates a rather expensive current valuation of AR.
Compared to the rest of the industry, the Price/Earnings ratio of AR is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.51, AR is valued a bit cheaper.
AR is valuated reasonably with a Price/Forward Earnings ratio of 10.85.
AR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AR is cheaper than 72.38% of the companies in the same industry.
AR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.53.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.82 | ||
| Fwd PE | 10.85 |
4.2 Price Multiples
AR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AR is cheaper than 60.95% of the companies in the same industry.
AR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AR is cheaper than 70.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.92 | ||
| EV/EBITDA | 7.27 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AR's earnings are expected to grow with 120.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y199.76%
EPS Next 3Y120.07%
5. Dividend
5.1 Amount
AR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
33.14
+2.23 (+7.21%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners88.24%
Inst Owner Change-1.97%
Ins Owners6.43%
Ins Owner Change-0.03%
Market Cap10.24B
Revenue(TTM)5.03B
Net Income(TTM)547.72M
Analysts82.76
Price Target44.77 (35.09%)
Short Float %4.33%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-34.09%
Min EPS beat(2)-45.15%
Max EPS beat(2)-23.03%
EPS beat(4)1
Avg EPS beat(4)1.27%
Min EPS beat(4)-45.15%
Max EPS beat(4)82.98%
EPS beat(8)3
Avg EPS beat(8)-5.09%
EPS beat(12)6
Avg EPS beat(12)2.98%
EPS beat(16)7
Avg EPS beat(16)-1.67%
Revenue beat(2)0
Avg Revenue beat(2)-3.23%
Min Revenue beat(2)-3.5%
Max Revenue beat(2)-2.96%
Revenue beat(4)0
Avg Revenue beat(4)-3.78%
Min Revenue beat(4)-5.41%
Max Revenue beat(4)-2.96%
Revenue beat(8)1
Avg Revenue beat(8)-2.06%
Revenue beat(12)4
Avg Revenue beat(12)1.78%
Revenue beat(16)7
Avg Revenue beat(16)3.89%
PT rev (1m)-2.7%
PT rev (3m)-6.5%
EPS NQ rev (1m)-46.82%
EPS NQ rev (3m)-58.43%
EPS NY rev (1m)-20.47%
EPS NY rev (3m)-32.87%
Revenue NQ rev (1m)-3.82%
Revenue NQ rev (3m)-9.1%
Revenue NY rev (1m)-0.76%
Revenue NY rev (3m)-5.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.82 | ||
| Fwd PE | 10.85 | ||
| P/S | 2.03 | ||
| P/FCF | 12.92 | ||
| P/OCF | 6.66 | ||
| P/B | 1.39 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 7.27 |
EPS(TTM)1.86
EY5.61%
EPS(NY)3.06
Fwd EY9.22%
FCF(TTM)2.57
FCFY7.74%
OCF(TTM)4.98
OCFY15.02%
SpS16.29
BVpS23.78
TBVpS23.78
PEG (NY)0.04
PEG (5Y)N/A
Graham Number31.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 7.46% | ||
| ROCE | 5.88% | ||
| ROIC | 4.85% | ||
| ROICexc | 4.85% | ||
| ROICexgc | 4.85% | ||
| OM | 13.48% | ||
| PM (TTM) | 10.88% | ||
| GM | 71.08% | ||
| FCFM | 15.75% |
ROA(3y)5.12%
ROA(5y)0.87%
ROE(3y)10.6%
ROE(5y)1.31%
ROIC(3y)7.38%
ROIC(5y)N/A
ROICexc(3y)7.38%
ROICexc(5y)N/A
ROICexgc(3y)7.38%
ROICexgc(5y)N/A
ROCE(3y)8.96%
ROCE(5y)N/A
ROICexgc growth 3Y-22.4%
ROICexgc growth 5Y-28.27%
ROICexc growth 3Y-22.4%
ROICexc growth 5Y-28.27%
OM growth 3Y-21.28%
OM growth 5Y-30.85%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.22%
GM growth 5Y9.09%
F-Score8
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.65 | ||
| Debt/EBITDA | 0.88 | ||
| Cap/Depr | 91.47% | ||
| Cap/Sales | 14.81% | ||
| Interest Coverage | 7.41 | ||
| Cash Conversion | 103.01% | ||
| Profit Quality | 144.72% | ||
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.31 | ||
| Altman-Z | 1.66 |
F-Score8
WACC8.53%
ROIC/WACC0.57
Cap/Depr(3y)131.55%
Cap/Depr(5y)118.34%
Cap/Sales(3y)17.99%
Cap/Sales(5y)18.9%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)18700%
EPS 3Y-37.61%
EPS 5YN/A
EPS Q2Q%225%
EPS Next Y460.56%
EPS Next 2Y199.76%
EPS Next 3Y120.07%
EPS Next 5Y43.23%
Revenue 1Y (TTM)15.67%
Revenue growth 3Y-2.17%
Revenue growth 5Y-0.38%
Sales Q2Q%15.72%
Revenue Next Year19.3%
Revenue Next 2Y13.18%
Revenue Next 3Y9.51%
Revenue Next 5Y43.58%
EBIT growth 1Y266.63%
EBIT growth 3Y-22.98%
EBIT growth 5Y-31.11%
EBIT Next Year1040.14%
EBIT Next 3Y134.55%
EBIT Next 5Y54.21%
FCF growth 1Y3331.43%
FCF growth 3Y-48.03%
FCF growth 5YN/A
OCF growth 1Y32.87%
OCF growth 3Y-20.02%
OCF growth 5Y11.91%
ANTERO RESOURCES CORP / AR FAQ
What is the ChartMill fundamental rating of ANTERO RESOURCES CORP (AR) stock?
ChartMill assigns a fundamental rating of 4 / 10 to AR.
Can you provide the valuation status for ANTERO RESOURCES CORP?
ChartMill assigns a valuation rating of 6 / 10 to ANTERO RESOURCES CORP (AR). This can be considered as Fairly Valued.
How profitable is ANTERO RESOURCES CORP (AR) stock?
ANTERO RESOURCES CORP (AR) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for AR stock?
The Earnings per Share (EPS) of ANTERO RESOURCES CORP (AR) is expected to grow by 460.56% in the next year.