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 0th 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 compound free cash flow growth rate over the past 1.75 years comes in at -0.56%; that's greater than merely 1.8% of US stocks we're applying DCF forecasting to.
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 merely 4.95% 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 71.66% 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 CLR, CVI, EXTN, GLOG, and KLXE.
Cimarex Energy (XEC) has increased drilling activity and its production, which will decline in the second half of 2020, and will likely begin to recover towards the end of the year. Moreover, the company's earnings should also increase and it will likely generate strong levels of free cash flows as...
Sarfaraz A. Khan on Seeking Alpha | August 31, 2020
Cimarex Energy (XEC) declares $0.22/share quarterly dividend, in line with previous.Forward yield 3.11%Payable Dec. 1; for shareholders of record Nov. 13; ex-div Nov. 12.See XEC Dividend Scorecard, Yield Chart, & Dividend Growth....
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