PrimeEnergy Revenue vs. Return On Equity

PNRG Stock  USD 183.05  33.05  15.29%   
Based on the key profitability measurements obtained from PrimeEnergy's financial statements, PrimeEnergy is performing exceptionally good at this time. It has a great risk to showcase excellent profitability results in January. Profitability indicators assess PrimeEnergy's ability to earn profits and add value for shareholders.
 
Total Revenue  
First Reported
1985-09-30
Previous Quarter
64.6 M
Current Value
69.5 M
Quarterly Volatility
13.9 M
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, PrimeEnergy's Days Of Sales Outstanding is most likely to slightly grow in the upcoming years. At this time, PrimeEnergy's Income Tax Expense is most likely to increase significantly in the upcoming years. The PrimeEnergy's current Income Before Tax is estimated to increase to about 35.9 M, while Interest Income is projected to decrease to roughly 395.6 K.
For PrimeEnergy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of PrimeEnergy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well PrimeEnergy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between PrimeEnergy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of PrimeEnergy over time as well as its relative position and ranking within its peers.
  

PrimeEnergy's Revenue Breakdown by Earning Segment

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For more detail on how to invest in PrimeEnergy Stock please use our How to Invest in PrimeEnergy guide.
Is Oil & Gas Exploration & Production space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of PrimeEnergy. If investors know PrimeEnergy will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about PrimeEnergy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.034
Earnings Share
23.21
Revenue Per Share
98.685
Quarterly Revenue Growth
1.178
Return On Assets
0.1202
The market value of PrimeEnergy is measured differently than its book value, which is the value of PrimeEnergy that is recorded on the company's balance sheet. Investors also form their own opinion of PrimeEnergy's value that differs from its market value or its book value, called intrinsic value, which is PrimeEnergy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because PrimeEnergy's market value can be influenced by many factors that don't directly affect PrimeEnergy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between PrimeEnergy's value and its price as these two are different measures arrived at by different means. Investors typically determine if PrimeEnergy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PrimeEnergy'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.

PrimeEnergy Return On Equity vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining PrimeEnergy's current stock value. Our valuation model uses many indicators to compare PrimeEnergy value to that of its competitors to determine the firm's financial worth.
PrimeEnergy is rated below average in revenue category among its peers. It is considered to be number one stock in return on equity category among its peers . The ratio of Revenue to Return On Equity for PrimeEnergy is about  429,905,726 . At this time, PrimeEnergy's Total Revenue is most likely to increase significantly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value PrimeEnergy by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

PrimeEnergy Revenue vs. Competition

PrimeEnergy is rated below average in revenue category among its peers. Market size based on revenue of Energy industry is at this time estimated at about 12.61 Billion. PrimeEnergy maintains roughly 123.12 Million in revenue contributing less than 1% to equities under Energy industry.

PrimeEnergy Return On Equity vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

PrimeEnergy

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
123.12 M
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

PrimeEnergy

Return On Equity

 = 

Net Income

Total Equity

 = 
0.29
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

PrimeEnergy Return On Equity Comparison

PrimeEnergy is currently under evaluation in return on equity category among its peers.

PrimeEnergy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in PrimeEnergy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, PrimeEnergy will eventually generate negative long term returns. The profitability progress is the general direction of PrimeEnergy's change in net profit over the period of time. It can combine multiple indicators of PrimeEnergy, 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
Operating Income25.1 M26.3 M
Net Income28.1 M29.5 M
Income Tax Expense6.1 M6.4 M
Income Before Tax34.2 M35.9 M
Total Other Income Expense Net9.2 M9.6 M
Net Income Applicable To Common Shares56 M58.8 M
Net Income From Continuing Ops35.6 M37.4 M
Non Operating Income Net Other1.8 K1.7 K
Interest Income515 K395.6 K
Net Interest Income-70 K-73.5 K
Change To Netincome-31.7 M-30.1 M
Net Income Per Share 15.19  15.95 
Income Quality 3.88  6.57 
Net Income Per E B T 0.82  0.86 

PrimeEnergy Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on PrimeEnergy. 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 PrimeEnergy 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 PrimeEnergy's important profitability drivers and their relationship over time.

Use PrimeEnergy 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 PrimeEnergy 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 PrimeEnergy will appreciate offsetting losses from the drop in the long position's value.

PrimeEnergy Pair Trading

PrimeEnergy Pair Trading Analysis

The ability to find closely correlated positions to PrimeEnergy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PrimeEnergy 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 PrimeEnergy - 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 PrimeEnergy to buy it.
The correlation of PrimeEnergy 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 PrimeEnergy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PrimeEnergy 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 PrimeEnergy 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 PrimeEnergy position

In addition to having PrimeEnergy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Asset Allocation ETFs Thematic Idea Now

Asset Allocation ETFs
Asset Allocation ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Asset Allocation ETFs theme has 146 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Asset Allocation ETFs Theme or any other thematic opportunities.
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When determining whether PrimeEnergy is a strong investment it is important to analyze PrimeEnergy's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact PrimeEnergy's future performance. For an informed investment choice regarding PrimeEnergy Stock, refer to the following important reports:
Check out Your Equity Center.
For more detail on how to invest in PrimeEnergy Stock please use our How to Invest in PrimeEnergy guide.
You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
To fully project PrimeEnergy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of PrimeEnergy at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include PrimeEnergy's income statement, its balance sheet, and the statement of cash flows.
Potential PrimeEnergy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although PrimeEnergy investors may work on each financial statement separately, they are all related. The changes in PrimeEnergy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on PrimeEnergy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.