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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Cimarex Energy Co. To summarize, we found that Cimarex Energy Co ranked in the 28th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Cimarex Energy Co, consider:
Cimarex Energy Co's weighted average cost of capital (WACC) is 13%; for context, that number is higher than 85.2% 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 -23.5. This coverage rate is greater than that of only 4.73% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Cimarex Energy Co experienced a tax rate of about 14% over the past twelve months; relative to its sector (Energy), this tax rate is higher than 71.58% of stocks generating 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 XEC, try PARR, BTE, PBR, TGA, and NOV.
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