Parsley Energy Inc (NYSE:PE) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of PE, it is a company with robust financial health as well as a excellent future outlook. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the full report on Parsley Energy here.
High growth potential with adequate balance sheet
PE’s outstanding revenue growth of 89.9% forecasted for the near future is certainly eye-catching for investors on the hunt for growth, supported by its outstanding capacity to churn out cash from operating activities, which is predicted to more than double over the next year. This indicates that revenue is driven by high-quality cash from PE’s day-to-day business as opposed to one-off income. With a debt-to-equity ratio of 35.8%, PE’s debt level is reasonable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future. PE appears to have made good use of debt, producing operating cash levels of 0.39x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Parsley Energy, there are three relevant aspects you should further examine:
- Historical Performance: What has PE’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.
- Valuation: What is PE 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 PE is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PE? 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.