Fundamentals in Focus for Concho Resources Inc. (CXO)

Concho Resources Inc. (NYSE:CXO) is one of the more popular stocks investors are adding into their watchlist. Now trading with a market value of 19.77B, the company has a mix of catalysts and obstacles that spring from the nature of its operations. Everyone seems to have their own opinion of this stock. But what do the numbers really say? We think it’s a great time to take a fresh look.

Concho Resources Inc. (NYSE:CXO) 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., which is offset by 72 million in current liabilities. The trend over time is important to note. In this case, the company’s debt has been growing. The company also has 14.38 billion in total assets, balanced by 4.64 billion in total liabilities, which should give you a sense of the viability of the company under any number of imagined business contexts.

Perhaps most importantly where cash movements are concerned, the company saw about 488 million in net operating cash flow.

Concho Resources Inc. (NYSE:CXO) 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 947 million in total revenues. That represents a quarterly year/year change in revenues of 0.55 in sequential terms, the CXO saw sales decline by 0.21.

But what about the bottom line? After all, that’s what really matters in the end. Concho Resources Inc. (CXO) is intriguing when broken down to its core data. The cost of selling goods last quarter was 548 million, yielding a gross basic income of 399 million. For shareholders, given the total diluted outstanding shares of 148.46 million, this means overall earnings per share of 5.58. Note, this compares with a consensus analyst forecast of 1.13 in earnings per share for its next fiscal quarterly report.

Is Concho Resources Inc. (NYSE:CXO) Valuation Attractive

Looking ahead at valuations, according to the consensus, the next fiscal year is forecast to bring about 5.98 in total earnings per share. If we consider a median price to earnings ratio on the stock, that corresponds with a stock price of 21.40. 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 Concho Resources Inc..

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