Antero Resources Corporation
Antero Resources Corporation Fundamental Analysis
Antero Resources Corporation (AR) shows moderate financial fundamentals with a PE ratio of 18.59, profit margin of 12.19%, and ROE of 8.63%. The company generates $5.2B in annual revenue with strong year-over-year growth of 28.09%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze AR's fundamental strength across five key dimensions:
Efficiency Score
WeakAR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAR trades at attractive valuation levels.
Growth Score
ExcellentAR delivers strong and consistent growth momentum.
Financial Health Score
ModerateAR shows balanced financial health with some risks.
Profitability Score
WeakAR struggles to sustain strong margins.
Key Financial Metrics
Is AR Expensive or Cheap?
P/E Ratio
AR trades at 18.59 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AR's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Antero Resources Corporation at 1.56 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.90 times EBITDA. This is generally considered low.
How Well Does AR Make Money?
Net Profit Margin
For every $100 in sales, Antero Resources Corporation keeps $12.19 as profit after all expenses.
Operating Margin
Core operations generate 17.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.63 in profit for every $100 of shareholder equity.
ROA
Antero Resources Corporation generates $4.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Antero Resources Corporation generates strong operating cash flow of $1.62B, reflecting robust business health.
Free Cash Flow
Antero Resources Corporation generates strong free cash flow of $1.36B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.42 in free cash annually.
FCF Yield
AR converts 11.59% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.008
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.68
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How AR Stacks Against Its Sector Peers
| Metric | AR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.59 | 22.11 | Better (Cheaper) |
| ROE | 8.63% | 950.00% | Weak |
| Net Margin | 12.19% | -62400.00% (disorted) | Strong |
| Debt/Equity | 0.68 | -0.46 (disorted) | Distorted |
| Current Ratio | 0.55 | 5.09 | Weak Liquidity |
| ROA | 4.44% | -11018380.00% (disorted) | Weak |
AR outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Antero Resources Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
50.48%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
144.01%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
95.01%
Industry Style: Cyclical, Value, Commodity
High Growth