ANTERO RESOURCES CORP (AR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AR - US03674X1063 - Common Stock
35.12 USD
+1.12 (+3.29%)
35.39 USD
+0.27 (+0.77%)
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 decent growth rate and is not valued too expensively.
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.
In multiple years AR reported negative net income over the last 5 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 in line with its industry peers.
AR has a Return On Equity (7.46%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 4.84%, AR is in line with its industry, outperforming 41.90% of the companies in the same industry.
AR had an Average Return On Invested Capital over the past 3 years of 7.38%. This is significantly below the industry average of 21.41%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 7.46% | ||
| ROIC | 4.84% |
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 has a Profit Margin (10.88%) which is in line with its industry peers.
AR's Operating Margin of 13.47% 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.
With an excellent Gross Margin value of 71.08%, AR belongs to the best of the industry, outperforming 81.90% of the companies in the same industry.
In the last couple of years the Gross Margin of AR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.47% | ||
| 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
AR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for AR has been increased compared to 1 year ago.
The number of shares outstanding for AR has been increased compared to 5 years ago.
Compared to 1 year ago, AR has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.80, we must say that AR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.80, AR is in the better half of the industry, outperforming 65.24% of the companies in the same industry.
The Debt to FCF ratio of AR is 1.66, which is an excellent value as it means it would take AR, only 1.66 years of fcf income to pay off all of its debts.
AR has a better Debt to FCF ratio (1.66) than 86.67% of its industry peers.
AR has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
AR has a better Debt to Equity ratio (0.18) than 71.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 1.8 |
ROIC/WACC0.57
WACC8.56%
2.3 Liquidity
A Current Ratio of 0.31 indicates that AR may have some problems paying its short term obligations.
AR's Current ratio of 0.31 is on the low side compared to the rest of the industry. AR is outperformed by 91.90% 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.
The Quick ratio of AR (0.31) is worse than 91.43% 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.
AR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -37.61% yearly.
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
The Earnings Per Share is expected to grow by 44.92% on average over the next years. This is a very strong growth
AR is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 43.58% yearly.
EPS Next Y460.56%
EPS Next 2Y199.76%
EPS Next 3Y120.07%
EPS Next 5Y44.92%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.88, which indicates a rather expensive current valuation of AR.
AR's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.15, AR is valued a bit cheaper.
With a Price/Forward Earnings ratio of 11.50, the valuation of AR can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AR indicates a somewhat cheap valuation: AR is cheaper than 66.67% of the companies listed 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 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.88 | ||
| Fwd PE | 11.5 |
4.2 Price Multiples
AR's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, AR is valued a bit cheaper than the industry average as 65.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.68 | ||
| EV/EBITDA | 8.13 |
4.3 Compensation for Growth
AR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as AR's earnings are expected to grow with 120.07% in the coming years.
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 |
35.12
+1.12 (+3.29%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners88.24%
Inst Owner Change-2.12%
Ins Owners6.43%
Ins Owner Change0.01%
Market Cap10.83B
Revenue(TTM)5.03B
Net Income(TTM)547.74M
Analysts82.76
Price Target43.81 (24.74%)
Short Float %4.45%
Short Ratio2.81
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)-3.61%
PT rev (3m)-6.41%
EPS NQ rev (1m)-17.65%
EPS NQ rev (3m)-48.28%
EPS NY rev (1m)-9.28%
EPS NY rev (3m)-39.1%
Revenue NQ rev (1m)-5.3%
Revenue NQ rev (3m)-9.7%
Revenue NY rev (1m)-1.54%
Revenue NY rev (3m)-5.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.88 | ||
| Fwd PE | 11.5 | ||
| P/S | 2.15 | ||
| P/FCF | 13.68 | ||
| P/OCF | 7.04 | ||
| P/B | 1.47 | ||
| P/tB | 1.47 | ||
| EV/EBITDA | 8.13 |
EPS(TTM)1.86
EY5.3%
EPS(NY)3.06
Fwd EY8.7%
FCF(TTM)2.57
FCFY7.31%
OCF(TTM)4.99
OCFY14.2%
SpS16.31
BVpS23.81
TBVpS23.81
PEG (NY)0.04
PEG (5Y)N/A
Graham Number31.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 7.46% | ||
| ROCE | 5.88% | ||
| ROIC | 4.84% | ||
| ROICexc | 4.84% | ||
| ROICexgc | 4.84% | ||
| OM | 13.47% | ||
| PM (TTM) | 10.88% | ||
| GM | 71.08% | ||
| FCFM | 15.74% |
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 | 1.66 | ||
| Debt/EBITDA | 0.88 | ||
| Cap/Depr | 91.5% | ||
| Cap/Sales | 14.83% | ||
| Interest Coverage | 7.37 | ||
| Cash Conversion | 103% | ||
| Profit Quality | 144.59% | ||
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.31 | ||
| Altman-Z | 1.8 |
F-Score8
WACC8.56%
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 5Y44.92%
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 1Y310.18%
EBIT growth 3Y-22.98%
EBIT growth 5Y-31.11%
EBIT Next Year1040.14%
EBIT Next 3Y134.55%
EBIT Next 5Y56.83%
FCF growth 1Y3328.46%
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.