PDC ENERGY INC (PDCE)
US69327R1014 - Common Stock
We assign a fundamental rating of 6 out of 10 to PDCE. PDCE was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. PDCE scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on PDCE. With these ratings, PDCE could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
PDCE had positive earnings in the past year.
PDCE had a positive operating cash flow in the past year.
In multiple years PDCE reported negative net income over the last 5 years.
PDCE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PDCE has a Return On Assets of 22.14%. This is in the better half of the industry: PDCE outperforms 79.34% of its industry peers.
PDCE has a better Return On Equity (41.84%) than 76.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 30.10%, PDCE belongs to the top of the industry, outperforming 85.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PDCE is significantly below the industry average of 44.69%.
The 3 year average ROIC (15.55%) for PDCE is below the current ROIC(30.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.14% | ||
| ROE | 41.84% | ||
| ROIC | 30.1% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)15.55%
ROIC(5y)11.87%
1.3 Margins
The Profit Margin of PDCE (43.85%) is better than 81.22% of its industry peers.
PDCE has a Operating Margin of 58.61%. This is amongst the best in the industry. PDCE outperforms 87.32% of its industry peers.
In the last couple of years the Operating Margin of PDCE has grown nicely.
The Gross Margin of PDCE (87.02%) is better than 90.14% of its industry peers.
PDCE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.61% | ||
| PM (TTM) | 43.85% | ||
| GM | 87.02% |
OM growth 3Y123.77%
OM growth 5Y34.18%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.92%
GM growth 5Y-1.85%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PDCE is creating value.
The number of shares outstanding for PDCE has been reduced compared to 1 year ago.
PDCE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PDCE has an improved debt to assets ratio.
2.2 Solvency
PDCE has an Altman-Z score of 2.66. This is not the best score and indicates that PDCE is in the grey zone with still only limited risk for bankruptcy at the moment.
PDCE has a Altman-Z score of 2.66. This is in the better half of the industry: PDCE outperforms 65.73% of its industry peers.
The Debt to FCF ratio of PDCE is 1.41, which is an excellent value as it means it would take PDCE, only 1.41 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PDCE (1.41) is better than 74.65% of its industry peers.
PDCE has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
PDCE has a Debt to Equity ratio (0.34) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 2.66 |
ROIC/WACC3.69
WACC8.15%
2.3 Liquidity
PDCE has a Current Ratio of 0.49. This is a bad value and indicates that PDCE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.49, PDCE is doing worse than 87.32% of the companies in the same industry.
A Quick Ratio of 0.49 indicates that PDCE may have some problems paying its short term obligations.
PDCE has a Quick ratio of 0.49. This is amonst the worse of the industry: PDCE underperforms 83.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
PDCE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.96%.
The Earnings Per Share has been growing by 167.86% on average over the past years. This is a very strong growth
Looking at the last year, PDCE shows a very strong growth in Revenue. The Revenue has grown by 50.94%.
Measured over the past years, PDCE shows a very strong growth in Revenue. The Revenue has been growing by 33.07% on average per year.
EPS 1Y (TTM)-11.96%
EPS 3Y167.86%
EPS 5YN/A
EPS growth Q2Q-47.36%
Revenue 1Y (TTM)50.94%
Revenue growth 3Y49.28%
Revenue growth 5Y33.07%
Revenue growth Q2Q-23.42%
3.2 Future
Based on estimates for the next years, PDCE will show a small growth in Earnings Per Share. The EPS will grow by 7.15% on average per year.
Based on estimates for the next years, PDCE will show a small growth in Revenue. The Revenue will grow by 0.61% on average per year.
EPS Next Y-22.73%
EPS Next 2Y-1.16%
EPS Next 3Y7.15%
EPS Next 5YN/A
Revenue Next Year-13.82%
Revenue Next 2Y-3.94%
Revenue Next 3Y0.61%
Revenue Next 5YN/A
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.01, the valuation of PDCE can be described as very cheap.
PDCE's Price/Earnings ratio is a bit cheaper when compared to the industry. PDCE is cheaper than 69.01% of the companies in the same industry.
PDCE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.84.
With a Price/Forward Earnings ratio of 4.80, the valuation of PDCE can be described as very cheap.
Based on the Price/Forward Earnings ratio, PDCE is valued cheaply inside the industry as 86.85% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.35, PDCE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.01 | ||
| Fwd PE | 4.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PDCE indicates a rather cheap valuation: PDCE is cheaper than 87.79% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PDCE is valued a bit cheaper than the industry average as 73.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.02 | ||
| EV/EBITDA | 2.37 |
4.3 Compensation for Growth
The decent profitability rating of PDCE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.16%
EPS Next 3Y7.15%
5. Dividend
5.1 Amount
PDCE has a Yearly Dividend Yield of 2.17%.
Compared to an average industry Dividend Yield of 5.72, PDCE has a dividend in line with its industry peers.
PDCE's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
5.2 History
PDCE has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
10.55% of the earnings are spent on dividend by PDCE. This is a low number and sustainable payout ratio.
DP10.55%
EPS Next 2Y-1.16%
EPS Next 3Y7.15%
PDC ENERGY INC
NASDAQ:PDCE (8/4/2023, 7:23:12 PM)
After market: 73.85 0 (0%)73.85
-0.2 (-0.27%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.01 | ||
| Fwd PE | 4.8 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.14% | ||
| ROE | 41.84% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 58.61% | ||
| PM (TTM) | 43.85% | ||
| GM | 87.02% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-11.96%
EPS 3Y167.86%
EPS 5Y
EPS growth Q2Q
EPS Next Y-22.73%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)50.94%
Revenue growth 3Y49.28%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y