Callon Petroleum Company
Callon Petroleum Company Fundamental Analysis
Callon Petroleum Company (CPE) shows moderate financial fundamentals with a PE ratio of 5.77, profit margin of 17.12%, and ROE of 11.34%. The company generates $2.4B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CPE's fundamental strength across five key dimensions:
Efficiency Score
WeakCPE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCPE trades at attractive valuation levels.
Growth Score
ModerateCPE shows steady but slowing expansion.
Financial Health Score
ModerateCPE shows balanced financial health with some risks.
Profitability Score
WeakCPE struggles to sustain strong margins.
Key Financial Metrics
Is CPE Expensive or Cheap?
P/E Ratio
CPE trades at 5.77 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CPE's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values Callon Petroleum Company at 0.58 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.35 times EBITDA. This is generally considered low.
How Well Does CPE Make Money?
Net Profit Margin
For every $100 in sales, Callon Petroleum Company keeps $17.12 as profit after all expenses.
Operating Margin
Core operations generate 32.37 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.34 in profit for every $100 of shareholder equity.
ROA
Callon Petroleum Company generates $5.67 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Callon Petroleum Company generates strong operating cash flow of $1.12B, reflecting robust business health.
Free Cash Flow
Callon Petroleum Company generates weak or negative free cash flow of $-169.01M, restricting financial flexibility.
FCF Per Share
Each share generates $-2.54 in free cash annually.
FCF Yield
CPE converts -6.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.58
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.48
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How CPE Stacks Against Its Sector Peers
| Metric | CPE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.77 | 20.19 | Better (Cheaper) |
| ROE | 11.34% | 1019.00% | Weak |
| Net Margin | 17.12% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.48 | -0.65 (disorted) | Distorted |
| Current Ratio | 0.39 | 4.60 | Weak Liquidity |
| ROA | 5.67% | -11655350.00% (disorted) | Weak |
CPE 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 Callon Petroleum Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Commodity
EPS CAGR
N/A
Industry Style: Cyclical, Value, Commodity
FCF CAGR
N/A
Industry Style: Cyclical, Value, Commodity