The morning has been bad for the market. The Nasdaq is down 0.2%; the S&P 500 is trading down 0.3%; and the Dow has slipped 0.4%.The Oil and Gas Operations sector (DIG) is currently lagging behind the overall market, down 0.9%, and its current biggest movers are:
|Company||Market Cap||Percentage Change|
|Solazyme Inc (Nasdaq: SZYM)||$670.8 million||+5%|
|Clayton Williams Energy, Inc. (Nasdaq: CWEI)||$701.2 million||-4.2%|
|Newfield Exploration (NYSE: NFX)||$3.94 billion||-3.8%|
|Matador Resources Co (NYSE: MTDR)||$555.1 million||+3.7%|
|Ferrellgas Partners, L.P. (NYSE: FGP)||$1.36 billion||+3.7%|
|Energy XXI (Bermuda) Limited (Nasdaq: EXXI)||$2.3 billion||-3.3%|
|Concho Resources Inc. (NYSE: CXO)||$9.6 billion||-2.9%|
Forex Broker Summary: UFXMarkets
Solazyme (Nasdaq: SZYM) is up 5% to reach a current price of $11.67 per share. So far today, 202,976 shares have changed hands, while it was 285,935 shares yesterday. A stock's volume conveys how excited investors are about it.
Margin analysis is a great way to understand the profitability of companies. SZYM's operating profit margin is -126.2%. In other words, the company reported a net operating loss in the most recent quarter.
A wide array of ratios can be used by investors to estimate the attractiveness of a potential or existing investment and get an idea of its valuation. The debt ratio shows the proportion of assets that a company is financing through debt. The debt ratio for SZYM is a low 13.2%. A low debt ratio means the company has more available cash flow. However, one thing to note with this ratio: it isn't a pure measure of a company's debt (or indebtedness), as it also includes operational liabilities, such as accounts payable and taxes payable.
Clayton Williams Energy (Nasdaq: CWEI) is currently trading at a share price of $55.23, a 4.2% decline. So far today, the company's volume is 29,907 shares. Price change alone is not enough to know how a stock is doing. Volume is an important secondary indicator used to confirm trends suggested by price movement.
Margin analysis tells us how effectively management can wring profits from sales and how much room a company has to withstand a downturn, fend off competition and make mistakes. The gross profit margin for CWEI is 67.1%. Investors in growth stocks or short-term traders may be less interested in the operating margin ratio. CWEI's operating profit margin is 24.6%. A high net profit margin indicates a highly profitable company, and a low profit margin indicates the opposite. Net profit margin for the company is 25.8%.
Valuation ratios include the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. The debt-equity (D/E) ratio is a leverage ratio. CWEI has a D/E ratio of 178%, which is relatively high. Companies in capital-intensive industries usually have higher D/E ratios because they need to buy more property, plants, and equipment to operate. This easy-to-calculate ratio provides a general indication of a company's equity-liability relationship and is helpful to investors looking for a quick take on a company's leverage.
Newfield Exploration (NYSE: NFX) has fallen 3.8% and is currently trading at $28.08 per share. At 654,825 shares, the company's volume so far today is 0.2 times its average over the past three months. Volume is used to evaluate how meaningful the price movement of a stock is.
Profit-margin ratios measure how much money a company squeezes from its total revenue or total sales. Investors can look at a company's gross profit margin, operating profit margin and net margin to understand a company's profitability. NFX has a gross profit margin of 68.2%. Operating profit gives investors an opportunity to do profit-margin comparisons between companies that do not issue a separate disclosure of their cost of goods sold figures (which are needed to do gross margin analysis). Operating profit margin for NFX is 29.1%. Net profit margin is calculated by dividing net income by sales; the higher the net profit margin, the better. The company has a net profit margin of 25.8%.
Understanding investment valuation ratios allows the investor to assess the true value of an individual stock. The capitalization ratio measures the debt component of the capital structure, or capitalization of a company (i.e., the sum of long-term debt liabilities and shareholder equity) to support operations and growth. NFX's capitalization ratio is 41.9%. The capitalization ratio is one of the more meaningful debt ratios because it focuses on the relationship of debt liabilities as a component of a company's total capital base, which is the capital raised by shareholders and lenders.
Matador (NYSE: MTDR) is currently trading at $10.37 per share, a 3.7% increase. The company's volume for the morning is 45,684 shares. This is 0.4 times the average daily volume. The trading volume for a stock indicates the level of investor interest.
Profit-margin ratios can give investors deeper insight into management efficiency than earnings alone can provide. Gross profit margin, operating profit margin and net margin are commonly used margins. MTDR has a gross profit margin of 87.5%, which is on the high end. A high gross profit margin generally means that the company can make a reasonable profit on sales, provided that overhead costs do not increase. Relative to its gross profit margin, MTDR's operating profit margin of 24.3% and net profit margin of 25.6% are high.
Valuation ratios like the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield are useful in determining how attractive a potential or existing investment is. The price/book value ratio, often expressed simply as "price-to-book", provides investors a way to compare the market value, or what they are paying for each share, to a conservative measure of the value of the firm. The P/B ratio for MTDR is 1.39, indicating that the stock is trading for more than its book value. This implies that investors expect management to create more value from a given set of assets and/or that the market value of the firm's assets is significantly higher than their accounting value. P/B value comparisons should be made among companies in the same industry rather than across industries.
SEE: Investment Valuation Ratios: Price/Book Value Ratio
After rising 3.7%, Ferrellgas Partners (NYSE: FGP) is currently trading at a share price of $17.88. At 252,639 shares, the company's volume so far today is lighter than yesterday's volume of 1.2 million shares. In technical analysis, trading volume is used to determine the strength of a market indicator.
There are many tools investors can use to evaluate a stock, including margins. Margins, quite simply, are earnings expressed as a ratio, or a percentage of sales, and this allows investors to compare the profitability of different companies, while net earnings, which are presented as an absolute number, cannot. FGP has a low gross profit margin of 13.4%. Investors should track gross profit margin ratios over several years in order to see if earnings are consistent, growing or declining. Operating margin for FGP is 7.4% and net margin is -1.3%, both low relative to its gross margin.
Investors can make use of valuation ratios to estimate whether a stock is fairly valued. Dividend yield measures the income that a stock will generate for an investor. Dividend yield for FGP is a high 11.6%. This could be a sign that the company is a "dividend trap" as companies with high dividends can be risky investments. To calculate the dividend yield, divide the level of dividends by the stock price; the higher the yield, the more attractive the security.
SEE: Investment Valuation Ratios: Dividend Yield
Slipping 3.3%, Energy (Nasdaq: EXXI) is currently trading at $28.16 per share. So far today, 470,093 shares have changed hands. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is.
Profit-margin ratios help us to keep score, as measured over time, of management's ability to generate profits and manage costs and expenses. There are three key profit-margin ratios: gross profit margin, operating profit margin and net profit margin. The gross profit margin for EXXI is 72.8%. Net profit margin is calculated by dividing net income by sales. Net margin is 13.1%, which is high relative to its gross profit margin. A company with a high profit margin has a greater capability to maintain strong earnings during a recession than does a company with a low profit margin, providing investors with a greater margin of safety. As with other margin ratios, the operating margin is a percentage, which allows for more standardized comparison across time and among different companies of different sizes. EXXI's operating profit margin is 35.8%.
Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. EXXI's P/S ratio of 1.64 is on the high side. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. A limitation of the P/S ratio is that the price component measures only stock market captialization, while sales are a function of the entire capital structure, potentially leading to wide differences between levered and unlevered companies.
Concho Resources (NYSE: CXO) is trading at $89.58 per share, down 2.9%. With 287,792 shares changing hands so far today, the company's volume is 0.3 times the current three-month average. Volume indicates the level of interest that investors have in a company at its current price.
Margin analysis is a great way to understand the profitability of companies. CXO has a high gross profit margin of 81.3%. This may indicate that the company is over-pricing its products and/or services. Operating margin for CXO is 17.2% and net margin is 28.4%, both high relative to its gross margin.
A company's investment value can be estimated using valuation ratios such as the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. The easy-to-calculate debt ratio is helpful to investors looking for a quick take on the leverage for a company. The debt ratio for CXO is 58.8%. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. It is important to weigh current activity against historical performance when making any investment decisions. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.
- gross profit margin
- gross profit margin
- gross profit margin
- gross margin
- Gross profit margin
- gross profit margin
- gross profit margin
- gross profit margin