DVN: Devon Energy Corp
Recent Range: $50/share – $75/share (Current Price: 64.57, as of close of 3/29/10)
Price/Sales (P/S) = 3.52 (6.84, Industry)
Price/Book (P/B) = 1.81 (2.32)
Gross Margin = 79.2% (63.2%)
Pre-Tax Margin = -56.5% (-39.0%)
Debt/Equity Ratio = 0.47 (0.49)
Current Ratio = 0.8 (1.5)
Return on Equity = -16.9% (2.0%)
Return on Assets = -8.9% (1.8%)
Return on Capital = -10.1% (2.5%)
Analysis: DON’T BUY.
ECA: EnCana Corp
Recent Range: $24/share – $35/share (Current Price: 30.34, as of close of 3/29/10)
Price/Sales (P/S) = 2.00 (1.14, Industry)
Price/Book (P/B) = 1.22 (1.77)
Gross Margin = 17.5% (11.7%)
Pre-Tax Margin = -56.5% (-39.0%)
Debt/Equity Ratio = 0.47 (0.25)
Current Ratio = 1.4 (1.1)
Return on Equity = 9.3% (13.1%)
Return on Assets = 4.5% (6.4%)
Return on Capital = 5.0% (8.7%)
Analysis: OK—NOT GREAT.
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.
Recent Range: $19/share – $28/share (Current Price: 19.97, as of close of 3/29/10)
Price/Sales (P/S) = 5.43 (6.84, Industry)
Price/Book (P/B) = 1.77 (2.32)
Gross Margin = 57.9% (63.2%)
Pre-Tax Margin = -164.3% (-39.0%)
Debt/Equity Ratio = 0.79 (0.49)
Current Ratio = 0.6 (1.5)
Return on Equity = -30.5% (2.0%)
Return on Assets = -15.1% (1.8%)
Return on Capital = -16.9% (2.5%)
Analysis: DO NOT BUY!!! SELL IF YOU HAVE IT.
