Tuesday, March 30, 2010

Quick Analysis: Southwestern Energy Co (SWN)

SWN: Southwestern Energy Co

Recent Range: $31/share – $52/share (Current Price: 40.73, as of close of 3/29/10)

Price/Sales (P/S) = 6.08 (6.84, Industry)
Price/Book (P/B) = 5.59 (2.32)
Gross Margin = 69.4% (63.2%)
Pre-Tax Margin = -2.4% (-39.0%)
Debt/Equity Ratio = 0.44 (0.49)
Current Ratio = 1.1 (1.5)
Return on Equity = -1.5% (2.0%)
Return on Assets = -0.8% (1.8%)
Return on Capital = -0.9% (2.5%)

Analysis: Unimpressed.

This company’s financials seems to be about average within its industry. It seems like that it might benefit from having less costly overhead than some of its competitors. The company does not have a lot of cash flow.

If you feel like gambling, you can play with this stock’s volatility, but to me, it seems like it’s too expensive for what you get.

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