Cimarex Energy operates as an independent oil and gas exploration and production company primarily in Texas, Oklahoma, and New Mexico. The company was founded in 2002 and is based in Denver, Colorado.
XEC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Cimarex Energy Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Cimarex Energy Co ranked in the 42th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for XEC, they are:
The company's balance sheet shows it gets 55% of its capital from equity, and 45% of its capital from debt. Its equity weight surpasses that of 65.42% of free cash flow generating stocks in the Energy sector.
Cimarex Energy Co's weighted average cost of capital (WACC) is 12%; for context, that number is higher than 86.96% of tickers in our DCF set.
Cimarex Energy Co's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -9.15. This coverage rate is greater than that of merely 7.27% 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
Want more companies with a valuation profile/forecast similar to that of Cimarex Energy Co? See EQNR, COG, CLMT, OIS, and ENSV.