Beach Energy Current Valuation vs. Cash Flow From Operations

BPT Stock   1.36  0.03  2.26%   
Based on the key profitability measurements obtained from Beach Energy's financial statements, Beach Energy may not be well positioned to generate adequate gross income at this time. It has a very high risk of underperforming in January. Profitability indicators assess Beach Energy's ability to earn profits and add value for shareholders.
For Beach Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Beach Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Beach Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Beach Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Beach Energy over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Beach Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Beach Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Beach Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Beach Energy Cash Flow From Operations vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Beach Energy's current stock value. Our valuation model uses many indicators to compare Beach Energy value to that of its competitors to determine the firm's financial worth.
Beach Energy is rated fourth in current valuation category among its peers. It is number one stock in cash flow from operations category among its peers making about  0.21  of Cash Flow From Operations per Current Valuation. The ratio of Current Valuation to Cash Flow From Operations for Beach Energy is roughly  4.80 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Beach Energy's earnings, one of the primary drivers of an investment's value.

Beach Current Valuation vs. Competition

Beach Energy is rated fourth in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Energy industry is currently estimated at about 54.94 Billion. Beach Energy holds roughly 3.71 Billion in current valuation claiming about 7% of equities under Energy industry.

Beach Cash Flow From Operations vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Beach Energy

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
3.71 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes, and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investors or analysts to check on the quality of a company's earnings.

Beach Energy

Operating Cash Flow

 = 

EBITDA

-

Taxes

 = 
774.1 M
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about the company having enough liquid resources to meet current and long term debt obligations.

Beach Cash Flow From Operations Comparison

Beach Energy is currently under evaluation in cash flow from operations category among its peers.

Beach Energy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Beach Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Beach Energy will eventually generate negative long term returns. The profitability progress is the general direction of Beach Energy's change in net profit over the period of time. It can combine multiple indicators of Beach Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income660.8 M693.8 M
Operating Income146.3 M121.3 M
Income Before Tax-654.4 M-621.7 M
Total Other Income Expense Net-800.7 M-760.7 M
Income Tax Expense-179.1 M-170.1 M
Net Loss-475.3 M-451.5 M
Net Income Applicable To Common Shares460.9 M484 M
Net Loss-475.3 M-451.5 M
Net Interest Income-33.3 M-35 M
Interest Income8.7 M9.1 M
Change To Netincome35.5 M37.3 M

Beach Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Beach Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Beach Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Beach Energy's important profitability drivers and their relationship over time.

Use Beach Energy in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Beach Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Beach Energy will appreciate offsetting losses from the drop in the long position's value.

Beach Energy Pair Trading

Beach Energy Pair Trading Analysis

The ability to find closely correlated positions to Beach Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Beach Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Beach Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Beach Energy to buy it.
The correlation of Beach Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Beach Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Beach Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Beach Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Beach Energy position

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Additional Tools for Beach Stock Analysis

When running Beach Energy's price analysis, check to measure Beach Energy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Beach Energy is operating at the current time. Most of Beach Energy's value examination focuses on studying past and present price action to predict the probability of Beach Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Beach Energy's price. Additionally, you may evaluate how the addition of Beach Energy to your portfolios can decrease your overall portfolio volatility.