+ Watch CJES
on My Watchlist
Screen: Under $10B, Top 10% EBIT/EV, Z Score >1.81
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.
Rules of Thumb
Undervalued and should pick up with the natural gas market.
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.
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.
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..
Good financials, artificially depressed price
A reasonably priced stock in the oil and gas fracking business:Valuation Measures Market Cap (intraday)5: 1.07B Enterprise Value (Jan 11, 2012)3: 1.02B Trailing P/E (ttm, intraday): 8.31 Forward P/E (fye Dec 31, 2012)1: 4.83 PEG Ratio (5 yr expected)1: 0.35 Price/Sales (ttm): 1.72 Price/Book (mrq): 3.17
Ready to pop - recent 8K shows all 6 fleets under contract through Q2-2012 with last 2 just signed Q3/Q4 this year. Hitting Q4 $.90 EPS & FY $3.18 equates to $26.70 share price @current trailing PE=8.4. With conservative fwd growth and Street recognition (ie PE expansion), this is good bet for doubling + in 2012. Momentum building in this sector for a good Jan.
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