+ Watch CJES
on My Watchlist
C&J Energy Services CJES is based out of Houston, Texas and they esentially make all the equipment for drilling ( hydraulic fracturing, coiled tubing services and focus on complex well completions). Over $1.1 Billion in sales, $126 Million in profit and a market cap of $1.15 Billion ( almost equal to revenue) Key Statistics PE: 9.2Profit Margin: 11.05% Return On Equity: 21% EPS: $2.30 Debt- Equity: .23 Expected earnings growth next five years: 20% Compared To Competitors Financial Strength: D-E indicates its been less aggressive with using debt to finance growth than 80% of it's peers.Valuation: PE ratio is lower than 86% of competitors Profitability: CJES 11% profit margin is better than industry average of 7% Management: ROE shows its able to reinvest its earnings more effectively than 91% of competitors. Essentially they are outperforming their peers in every aspect. An excellent company at fair price.
With rising oil prices a need for oil service companies increasing.
As demand for cheap energy continues to grow, C&J Energy services will provide the means to bring it out of the ground without the risk of owning the wells.
Solid PEG, natural gas has huge upside.
cheap comparison to the group
After about one hour of research this looks like a great green thumb on CAPS. Company should continue to do well with the development of shale fields, although I'm not sure how the market saturation will affect it. Still, with a P/E around 6 and an estimated 5 year growth rate of 20% the company sports a PEG ratio of just 0.32. That's pretty dirty, and enough for me to take a flyer on a company I otherwise know nothing about.
5 Star CAPS screen weighted with 'good' (GM and ROE) and 'Cheap' (PE and PB) factors. Plus operating cash flow looked solid.
Rules of Thumb
Undervalued and should pick up with the natural gas market.
C&J Energy Services has been delivering outstanding growth, has very little debt, has interesting international expansion opportunities and it is trading for only 5 times earnings. So why is it so cheap? Because the market hates the uncertainty surrounding fracking. This is a bet that fracking is here to stay. If so, CJES should do tremendously well over the next several years.Kudos to TMFDoodlebugger for sharing his thoughts on the company with me.Deej
Seems like all the oil stocks should rebound
Another service name that is going to surprise to the upside.
When the shorts cover CJES will take off. Long term, the feds will probably screw up the entire fracking industry, but for now it's a good value. In at $16.70.
To be honest I pulled the trigger a little earlier than I thought I would here...I just started exploring what appears to be some pretty solid historical numbers and didn't really weigh all of the risks against the upside potential. I have sold out of quite a few positions this week (stuff I was no longer comfortable with) and found this to be the lesser of the evils that I was considering in the biotech sector. IPO went off in the high 20's last year and I picked it up at 17.81...killer earnings and I love me a good short squeeze!
I put real money on this one today. Hydraulic fracturing is a transformative technology that is leading an energy revolution by allowing access to both oil and natural gas resources that were previously inaccessible (primarily natural gas in the US). While the excessive natural gas supply is laying the hurt on natural gas producers, the equipment makers/drillers are somewhat insulated from this. While equipment expenditures and new wells will likely fall somewhat because of the excess of natural gas, companies like Chesapeake are working to bring supply back in line with demand and wet wells are still being drilled. I see this as a rerun of the early oil industry. Incredible demand, low supply; low demand, incredible supply; and on and on. Right now, we should be heading for higher demand with natural gas vehicles and correction of production, while a company like C&J stays somewhat insulated from prices, but benefits from the booms in drilling. I like the great metrics on this company and how well it's run, as well as the rock-bottom valuation. Perhaps a dividend could emerge in a few years as well, but at this juncture putting earnings back into the company should give a higher return. Of course, the huge risk is a fracking ban, but I think some of this is already factored into the low valuation, and such a ban cannot be maintained in light of the energy security benefits of US natural gas production. Some sort of resolution of environmental concerns will be obtained.
A PE of around 7 is sure to go up with a huge boom of total revenue, net income, cash, equity all while their debt went away.
Very basic business model that makes money. For some reason, the street doesn't quite get that... yet. I am looking towards earnings to be a catalyst. this company went public 6 months ago at $32 and you can buy around $18, which is 7x trailing earnings and under 5x forward earnings. Toss in clean balance sheet and I am in with real money.
if you dont join the advance party on this voyage you will be extremely pi$$ed about it later. these guys will grow by leaps and bounds as more fracking is needed.. back up the truck ..get invested and get the frack out of here......the downward pressure on this stock is inexplicable and unsustainable..
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