Price to trailing twelve month operating cash flow for CPG is currently 0.5, higher than just 4.71% of US stocks with positive operating cash flow.
Of note is the ratio of Crescent Point Energy Corp's sales and general administrative expense to its total operating expenses; merely 2.72% of US stocks have a lower such ratio.
Crescent Point Energy Corp's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is 158.59%, greater than the shareholder yield of 97.51% of stocks in our set.
If you're looking for stocks that are quantitatively similar to Crescent Point Energy Corp, a group of peers worth examining would be LPI, RRC, XEC, SWN, and EQT.
Crescent Point Energy Corporation Ordinary Shares (Canada) (CPG) Company Bio
Crescent Point Energy acquires, explores, develops, and produces oil and natural gas properties in Western Canada and the United States. The company was founded in 2001 and is based in Calgary, Canada.
CPG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Crescent Point Energy Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Crescent Point Energy Corp ranked in the 92th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 2898.5%. As for the metrics that stood out in our discounted cash flow analysis of Crescent Point Energy Corp, consider:
25% of the company's capital comes from equity, which is greater than only 11.8% of stocks in our cash flow based forecasting set.
Crescent Point Energy Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -6. This coverage rate is greater than that of merely 8.83% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 15. This value is greater than 83.32% stocks in the Energy sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CPG, try WMB, PDS, PAGP, BPMP, and TALO.
With oil prices falling to zero, the share prices of the Birchcliff Energy stock and Crescent Point Energy stock might also drop to zilch. Both oil companies are standing on shaky ground that could give way at any moment. The post 2 Oil Stocks That Could Drop to $0 in 2020 appeared first on The Motley Fool Canada .