SRC Energy Inc. [NYSE:SRCI]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For SRC Energy Inc. [SRCI], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in December. On average, stock market experts give SRCI an Outperform rating. Its stock price has been found in the range of 4.01 to 13.32. This is compared to its latest closing price of $6.35.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for SRC Energy Inc. [SRCI] is sitting at 2.15. This is compared to 1 month ago, when its average rating was 2.15.
For the quarter ending in Dec-18 SRC Energy Inc. [SRCI] generated $0.19 billion in sales. That’s 2.34% higher than the average estimate of $0.19 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Wed 1 May (In 15 Days).
Fundamental Analysis of SRC Energy Inc. [SRCI]
Now let’s turn to look at profitability: with a current Operating Margin for SRC Energy Inc. [SRCI] sitting at +48.79 and its Gross Margin at +54.77, this company’s Net Margin is now 40.30%. These measurements indicate that SRC Energy Inc. [SRCI] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 15.11, and its Return on Invested Capital has reached 10.20%. Its Return on Equity is 17.97, and its Return on Assets is 10.76. These metrics all suggest that SRC Energy Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, SRC Energy Inc. [SRCI] has generated a Total Debt to Total Equity ratio of 46.33. Similarly, its Total Debt to Total Capital is 31.66, while its Total Debt to Total Assets stands at 26.68. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 46.33, and its Long-Term Debt to Total Capital is 31.66. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 4.26 and its Total Debt to EBITDA Value is 1.49. The Enterprise Value to Sales for this firm is now 3.26, and its Total Debt to Enterprise Value stands at 0.41. SRC Energy Inc. [SRCI] has a Price to Book Ratio of 0.72, a Price to Cash Flow Ratio of 2.19 and P/E Ratio of 6.00. These metrics all suggest that SRC Energy Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, SRC Energy Inc. [SRCI] earns $4,392,116 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.25 and its Total Asset Turnover is 0.27. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.66 and its Current Ratio is 0.66. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
SRC Energy Inc. [SRCI] has 242.68M shares outstanding, amounting to a total market cap of $1.56B. Its stock price has been found in the range of 4.01 to 13.32. At its current price, it has moved by -51.88% from its 52-week high, and it has moved 60.05% from its 52-week low.
This stock’s Beta value is currently 1.73, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 72.45. This RSI suggests that SRC Energy Inc. is currently Overbought.
Conclusion: Is SRC Energy Inc. [SRCI] a Reliable Buy?
Shares of SRC Energy Inc. [SRCI], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.