Permian Resources Corporation
Permian Resources Corporation Fundamental Analysis
Permian Resources Corporation (PR) shows moderate financial fundamentals with a PE ratio of 15.52, profit margin of 15.65%, and ROE of 8.55%. The company generates $5.5B in annual revenue with strong year-over-year growth of 60.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.4/100 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 PR's fundamental strength across five key dimensions:
Efficiency Score
WeakPR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPR trades at attractive valuation levels.
Growth Score
ExcellentPR delivers strong and consistent growth momentum.
Financial Health Score
ModeratePR shows balanced financial health with some risks.
Profitability Score
ModeratePR maintains healthy but balanced margins.
Key Financial Metrics
Is PR Expensive or Cheap?
P/E Ratio
PR trades at 15.52 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PR's PEG of -0.53 indicates potential undervaluation.
Price to Book
The market values Permian Resources Corporation at 1.26 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.72 times EBITDA. This is generally considered low.
How Well Does PR Make Money?
Net Profit Margin
For every $100 in sales, Permian Resources Corporation keeps $15.65 as profit after all expenses.
Operating Margin
Core operations generate 31.21 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.55 in profit for every $100 of shareholder equity.
ROA
Permian Resources Corporation generates $4.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Permian Resources Corporation generates strong operating cash flow of $3.77B, reflecting robust business health.
Free Cash Flow
Permian Resources Corporation generates strong free cash flow of $3.20B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.30 in free cash annually.
FCF Yield
PR converts 22.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.53
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.56
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.37
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How PR Stacks Against Its Sector Peers
| Metric | PR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.52 | 20.19 | Better (Cheaper) |
| ROE | 8.55% | 1019.00% | Weak |
| Net Margin | 15.65% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.37 | -0.65 (disorted) | Distorted |
| Current Ratio | 0.67 | 4.60 | Weak Liquidity |
| ROA | 4.69% | -11655350.00% (disorted) | Weak |
PR 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 Permian Resources Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
117.64%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
2461.68%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
148.55%
Industry Style: Cyclical, Value, Commodity
High Growth