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Energy Stocks Roundup 02/11/2020: CCJ, CNX, COG

Written by Samuel Taube
Posted February 11, 2020

Today is Tuesday, February 11, 2020, and this is your daily energy stocks roundup. Today we’re looking at the valuations of Cameco Corporation (NYSE: CCJ), CNX Resources Corporation (NYSE: CNX), and Cabot Oil & Gas Corporation (NYSE: COG).

Cameco Corporation (NYSE: CCJ)

Cameco Corporation (NYSE: CCJ) is a $3.649 billion company today with a one-year return of -28.69%. Let’s look at its price-to-earnings (P/E) ratio, its enterprise-value-to-free-cash-flow (EV/CF) ratio, and its debt-to-equity ratio to gauge whether or not it’s a good investment.

The company's P/E ratio of 63.66 is 39.48% lower than the industry average of 105.18. That’s good. A company’s P/E ratio shows its price as a multiple of its earnings per share (EPS). A relatively low P/E ratio is generally an indicator that a company is undervalued.

Cameco Corporation's enterprise-value-to-free-cash-flow (EV/FCF) ratio of 10.08 is 36.16% lower than its industry average of 15.79. That’s good.

A company’s EV/FCF ratio measures its enterprise value (market cap adjusted for cash holdings and debt) against its free cash flow (how much money the company has after all of its cash outflows). A low EV/FCF ratio indicates that a company is performing efficiently, managing its debt well, and maintaining a strong cash position.

The debt-to-equity (D/E) ratio of Cameco Corporation has decreased by 33.36% over the last year. That's good.

A company’s D/E ratio equals its total liabilities divided by its shareholder equity. It’s a measure of a company’s financial leverage. A declining D/E ratio indicates that a company is decreasing its debt burden over time, while a rising ratio indicates that a company is taking on more debt over time.

Cameco Corporation has scored favorably on 3 of our 3 valuation metrics. With this in mind, we believe the stock is a great value.

CNX Resources Corporation (NYSE: CNX)

CNX Resources Corporation (NYSE: CNX) is a $1.161 billion company today with a one-year return of -34.97%. Judging by its price-to-earnings (P/E) ratio, its enterprise-value-to-free-cash-flow (EV/CF) ratio, and its debt-to-equity ratio, is it a good investment?

The company's P/E ratio of 24.46 is 204.04% higher than the industry average of 8.045. That’s not good.

CNX Resources Corporation's enterprise-value-to-free-cash-flow (EV/FCF) ratio of -22.29 is below zero. That’s not good. 

The debt-to-equity (D/E) ratio of CNX Resources Corporation has increased by 20.54% over the last year. That's not good.

CNX Resources Corporation has scored favorably on 0 of our 3 valuation metrics. With this in mind, we believe the stock is very overvalued.

Cabot Oil & Gas Corporation (NYSE: COG)

Cabot Oil & Gas Corporation (NYSE: COG) is a $5.811 billion company today with a one-year return of -38.83%. Is it a good value based on its price-to-earnings (P/E) ratio, its enterprise-value-to-free-cash-flow (EV/CF) ratio, and its debt-to-equity ratio?

The company's P/E ratio of 7.644 is 4.98% lower than the industry average of 8.045. That’s good.

Cabot Oil & Gas Corporation's enterprise-value-to-free-cash-flow (EV/FCF) ratio of 11.04 is 51.64% lower than its industry average of 22.83. That’s good.

The debt-to-equity (D/E) ratio of Cabot Oil & Gas Corporation has decreased by 10.26% over the last year. That's good.

Cabot Oil & Gas Corporation has scored favorably on 3 of our 3 valuation metrics. With this in mind, we believe the stock is a great value.

To summarize, we believe Cameco Corporation (NYSE: CCJ) is a great value, CNX Resources Corporation (NYSE: CNX) is very overvalued, and Cabot Oil & Gas Corporation (NYSE: COG) is a great value.

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