Approach Resources, Inc., an independent energy company, focuses on the acquisition, exploration, development, and production of unconventional oil and gas reserves.
The last earnings update was 6 days ago.
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Approach Resources. This is due to cash flow or dividend data being
unavailable. The share price is
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Approach Resources's earnings available for a low price, and how does
this compare to other companies in the same industry?
Approach Resources is not considered high growth as it is expected to be loss making for the next 1-3 years.
Approach Resources's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Approach Resources's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
Oil and Gas
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Approach Resources's finances.
The net worth of a company is the difference between its assets and liabilities.
Approach Resources's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Approach Resources's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Approach Resources's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.1x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Sergei Krylov has been Chief Executive Officer of Approach Resources, Inc. since April 9, 2019 and as its Chief Financial Officer since January 03, 2014. He served as Executive Vice President of Approach Resources, Inc. from January 03, 2014 to April 9, 2019. Mr. Krylov has oil and gas industry finance experience from J.P. Morgan's Energy Investment Banking group. While at J.P. Morgan, he advised clients on strategic planning, mergers and acquisitions and capital market transactions. From 2000 to 2013, Mr. Krylov worked at J.P. Morgan Securities LLC in the Energy Investment Banking group, where he served as Managing Director. Mr. Krylov holds a Bachelor of Business Administration in Finance, summa cum laude, from Pace University.
Sergei's compensation has been consistent with company performance over the past year.
Sergei's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Approach Resources management team is about average.
CEO & CFO
Chief Administrative Officer
Chief Accounting Officer
VP, General Counsel & Corporate Secretary
Senior Vice President of Engineering
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Approach Resources board of directors is less than 3 years, this suggests a new board.
How Should Investors React To Approach Resources, Inc.'s (NASDAQ:AREX) CEO Pay?
First, this article will compare CEO compensation with compensation at similar sized companies. … Craft's Compensation Compare With Similar Sized Companies. … is worth US$86m, and total annual CEO compensation is US$2.4m.
Is Approach Resources, Inc.'s (NASDAQ:AREX) Balance Sheet A Threat To Its Future?
While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Companies operating in the Oil and Gas industry,. … Evaluating financial health as part of your investment thesis is
Do Directors Own Approach Resources, Inc. (NASDAQ:AREX) Shares?
The big shareholder groups in Approach Resources, Inc. … Approach Resources is not a large company by global standards. … Taking a look at the our data on the ownership groups (below), it's seems that.
How Much Did Approach Resources Inc's (NASDAQ:AREX) CEO Pocket Last Year?
This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … Craft's Compensation Compare With Similar Sized Companies. … According to our data, Approach Resources Inc has a market capitalization of US$139m, and pays its CEO total annual compensation worth US$2.4m?
Is Approach Resources Inc's (NASDAQ:AREX) Balance Sheet Strong Enough To Weather A Storm?
While small-cap stocks, such as Approach Resources Inc (NASDAQ:AREX) with its market cap of US$203.63m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.
With An ROE Of 3.49%, Can Approach Resources Inc (NASDAQ:AREX) Catch Up To The Industry?
The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to begin learning the link between company’s fundamentals and stock market performance. … Knowing these components can change your views on AREX's below-average returns.
Should You Be Tempted To Buy Approach Resources Inc (NASDAQ:AREX) Because Of Its PE Ratio?
The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to begin learning the link between Approach Resources Inc (NASDAQ:AREX)’s fundamentals and stock market performance. … While AREX might seem like an attractive stock to buy, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions.
When Should You Buy Approach Resources Inc (NASDAQ:AREX)?
Approach Resources Inc (NASDAQ:AREX), an energy company based in United States, saw a double-digit share price rise of over 10% in the past couple of months on the NasdaqGS. … The stock’s ratio of 0.41x is currently trading slightly below its industry peers’ ratio of 1.43x, which means if you buy Approach Resources today, you’d be paying a relatively fair price for it. … Will you have enough confidence to invest in the company should the price drop below its fair value?
When Will Approach Resources Inc (NASDAQ:AREX) Become Profitable?
Approach Resources Inc's (NASDAQ:AREX): Approach Resources, Inc., an independent energy company, focuses on the acquisition, exploration, development, and production of unconventional oil and gas reserves in the United States. … View our latest analysis for Approach Resources AREX is bordering on breakeven, according to analysts. … For a more comprehensive look at AREX, take a look at AREX’s company page on Simply Wall St.
Does Approach Resources Inc's (NASDAQ:AREX) -115.07% Earnings Drop Reflect A Longer Term Trend?
After reading Approach Resources Inc's (NASDAQ:AREX) most recent earnings announcement (31 December 2017), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … View our latest analysis for Approach Resources Was AREX's recent earnings decline indicative of a tough track record? … For the most up-to-date info, I use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data.
Approach Resources, Inc., an independent energy company, focuses on the acquisition, exploration, development, and production of unconventional oil and gas reserves. The company’s properties are primarily located in the Permian Basin in west Texas. It also owns interests in east Texas Basin. As of December 31, 2018, its estimated proved reserves were 180.1 million barrels of oil equivalent located in Crockett and Schleicher counties, Texas. The company also owned and operated 813 producing oil and gas wells in the Permian Basin. Approach Resources, Inc. was incorporated in 2002 and is headquartered in Fort Worth, Texas.
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