Newpark Resources provides drilling fluids systems, and composite matting systems used in oilfield and other commercial markets. The company was founded in 1932 and is based in The Woodlands, Texas.
NR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Newpark Resources Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Newpark Resources Inc ranked in the 75th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for NR, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 65. Its equity weight surpasses that of 65.97% of free cash flow generating stocks in the Energy sector.
Newpark Resources Inc's weighted average cost of capital (WACC) is 13%; for context, that number is higher than 84.58% of tickers in our DCF set.
Newpark Resources Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -6.28. This coverage rate is greater than that of just 10.82% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
NGL, SHLX, TNP, TTI, and REGI can be thought of as valuation peers to NR, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
In this article you are going to find out whether hedge funds think Newpark Resources Inc (NYSE:NR) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks […]
Newpark Resources, Inc. (NYSE: NR) ("Newpark" or the "Company") announced today that it received written notification from the New York Stock Exchange (the "NYSE") that it has regained compliance with the NYSE continued listing standards.