Concho Resources Inc. (NYSE:CXO): Commentary On Fundamentals
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Attractive stocks have exceptional fundamentals. In the case of Concho Resources Inc. (NYSE:CXO), there's is a company with great financial health as well as a an impressive track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Concho Resources here.
Solid track record with excellent balance sheet
Over the past few years, CXO has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did CXO outperformed its past performance, its growth also surpassed the Oil and Gas industry expansion, which generated a 61% earnings growth. This is an notable feat for the company. CXO's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that CXO manages its cash and cost levels well, which is a crucial insight into the health of the company. CXO appears to have made good use of debt, producing operating cash levels of 0.59x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For Concho Resources, I've put together three fundamental aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for CXO’s future growth? Take a look at our free research report of analyst consensus for CXO’s outlook.
Valuation: What is CXO worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CXO is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CXO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
