Attractive stocks have exceptional fundamentals. In the case of Bonanza Creek Energy Inc (NYSE:BCEI), there’s is a financially-robust company with a a excellent growth outlook, not yet reflected in the share price. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Bonanza Creek Energy here.
High growth potential and good value
BCEI is currently trading at a price-to-equity ratio of 12.24x relative to the industry ratio of 14.04x and market ratio of 18.44x, which means it is relatively cheaper than its peers.
BCEI’s debt-to-equity ratio stands at 2.13%, which means its debt level is low. BCEI has plenty of financial flexibility, without large debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future. BCEI appears to have made good use of debt, producing operating cash levels of 0.53x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Bonanza Creek Energy, I’ve put together three pertinent aspects you should further examine:
- Historical Performance: What has BCEI’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Dividend Income vs Capital Gains: Does BCEI return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from BCEI as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BCEI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.