Parex Resources Inc.
Parex Resources Inc. Fundamental Analysis
Parex Resources Inc. (PARXF) shows moderate financial fundamentals with a PE ratio of 13.93, profit margin of 10.97%, and ROE of 5.88%. The company generates $1.0B in annual revenue with strong year-over-year growth of 10.12%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.9/100 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 PARXF's fundamental strength across five key dimensions:
Efficiency Score
WeakPARXF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPARXF trades at attractive valuation levels.
Growth Score
ModeratePARXF shows steady but slowing expansion.
Financial Health Score
ModeratePARXF shows balanced financial health with some risks.
Profitability Score
WeakPARXF struggles to sustain strong margins.
Key Financial Metrics
Is PARXF Expensive or Cheap?
P/E Ratio
PARXF trades at 13.93 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PARXF's PEG of -1.29 indicates potential undervaluation.
Price to Book
The market values Parex Resources Inc. at 0.81 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.69 times EBITDA. This is generally considered low.
How Well Does PARXF Make Money?
Net Profit Margin
For every $100 in sales, Parex Resources Inc. keeps $10.97 as profit after all expenses.
Operating Margin
Core operations generate 28.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.88 in profit for every $100 of shareholder equity.
ROA
Parex Resources Inc. generates $4.90 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Parex Resources Inc. generates strong operating cash flow of $380.08M, reflecting robust business health.
Free Cash Flow
Parex Resources Inc. generates strong free cash flow of $177.55M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.85 in free cash annually.
FCF Yield
PARXF converts 11.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.008
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.99
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How PARXF Stacks Against Its Sector Peers
| Metric | PARXF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.93 | 19.94 | Better (Cheaper) |
| ROE | 5.88% | 987.00% | Weak |
| Net Margin | 10.97% | -42983.00% (disorted) | Strong |
| Debt/Equity | 0.01 | -0.60 (disorted) | Distorted |
| Current Ratio | 0.99 | 4.67 | Weak Liquidity |
| ROA | 4.90% | -11498250.00% (disorted) | Weak |
PARXF 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 Parex Resources Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
90.20%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-73.30%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
125.33%
Industry Style: Cyclical, Value, Commodity
High Growth