WPX Energy, Inc. (WPX): More In-Depth Monitoring is Needed

It is interesting to note that WPX Energy, Inc. (NYSE:WPX) is active and made a solid movement in the last trading day. Now trading with a market value of 4.39B, the company has a mix of catalysts and obstacles that spring from the nature of its operations. As the day-to-day narrative ebbs and flows for this company, it is more important than ever to step back and get a bird’s eye view of the fundamental reality under the surface of this story.

WPX Energy, Inc. (NYSE:WPX) Fundamentals That Matter

It’s generally a good idea to start with the most fundamental piece of the picture: the balance sheet. The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For WPX, the company currently has 8 million of cash on the books. The trend over time is important to note. In this case, the company’s debt has been growing. The company also has 7.96 billion in total assets, balanced by 3.66 billion in total liabilities, which should give you a sense of the viability of the company under any number of imagined business contexts.

WPX Energy, Inc. (WPX) saw -185 million in free cash flow last quarter, representing a quarterly net change in cash of -134 million. Perhaps most importantly where cash movements are concerned, the company saw about 120 million in net operating cash flow.

WPX Energy, Inc. (NYSE:WPX) Revenue Growth Potential

As far as key trends that demonstrate something of the future investment potential of this stock, we need to take a closer look at the top line, first and foremost. Last quarter, the company saw 297 million in total revenues. That represents a quarterly year/year change in revenues of 0.02 in sequential terms, the WPX saw sales decline by 0.15.

But what about the bottom line? After all, that’s what really matters in the end. WPX Energy, Inc. (WPX) is intriguing when broken down to its core data. The cost of selling goods last quarter was 274 million, yielding a gross basic income of 23 million. For shareholders, given the total diluted outstanding shares of 423.2 million, this means overall earnings per share of 0.17. Note, this compares with a consensus analyst forecast of -0.15 in earnings per share for its next fiscal quarterly report.

Is WPX Energy, Inc. (NYSE:WPX) Valuation Attractive

Looking ahead at valuations, according to the consensus, the next fiscal year is forecast to bring about -0.08 in total earnings per share. If we consider a median price to earnings ratio on the stock, that corresponds with a stock price of 9,999. However, one should always remember: the trends are more important than the forecasts. This continues to be an interesting story, and we look forward to updating it again soon on WPX Energy, Inc..

Previous ArticleNext Article

Related Post

Are Investors Buying or Selling Himax Technologies... Recent insider trends for Himax Technologies, Inc. (NASDAQ:HIMX) have caught the attention of investors. Insider activity is often a strong indicator ...
Are Gran Tierra Energy Inc. (GTE)’s Recent O... Recent insider trends for Gran Tierra Energy Inc. (NYSE:GTE) have caught the attention of investors. Insider activity is often a strong indicator of f...
Are Southwestern Energy Company (SWN)’s Rece... Recent insider trends for Southwestern Energy Company (NYSE:SWN) have caught the attention of investors. Patters in insider activity can help analysts...
Lowe’s Companies, Inc. (LOW) vs. Brixmor Pro... Lowe's Companies, Inc. (NYSE:LOW) shares are down more than -8.47% this year and recently increased 0.77% or $0.65 to settle at $85.07. Brixmor Proper...
Comparing Time Warner Inc. (TWX) and Peabody Energ... Time Warner Inc. (NYSE:TWX) shares are up more than 2.41% this year and recently decreased -2.71% or -$2.61 to settle at $93.67. Peabody Energy Corpor...