Stocks for Portfolio with Profitability Analysis: Chesapeake Energy (NYSE:CHK), Noble Energy (NYSE:NBL)

Chesapeake Energy Corporation (NYSE:CHK) need to consider for profitability analysis, in latest session share price swings at $6.36 with percentage change of -1.63%. Chesapeake Energy Corporation (CHK) reported that its Board of Directors has reinstated the payment of dividends on its outstanding convertible preferred stock.

For the current quarter, the Board of Directors also declared dividends on each series of its outstanding preferred stock, as stated below. Holders of outstanding 5.0% (Series 2005B), 5.75% and 5.75% (Series A) Convertible Preferred Stock on February 1, 2017 will receive current quarterly dividends on February 15, 2017. Holders of the 4.5% Convertible Preferred Stock on March 1, 2017 will receive current quarterly dividends on March 15, 2017.

The Co has negative -62.30% profit margins to find consistent trends in a firm’s earnings. Gross profit margin and operating profit margin are its sub parts that firm have 55.70% and -63.70% respectively. CHK has returns on investment of -145.70%. The returns on assets were -42.10% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 248.60%, which is measuring profitability by disclosing how much profit generates by CHK with the shareholders’ money.

The firm attains analyst recommendation of 3.00 on scale of 1-5 with week’s performance of -3.29%. The firm current ratio calculated as 0.30, this value is acceptable if it lies in 1.3% to 3%. But its varies industry to industry. To strengthen these views, active industry firm has Quick Ratio of 0.30, which indicates firm has sufficient short-term assets to cover its immediate liabilities.

Noble Energy, Inc. (NYSE:NBL) also making a luring appeal, share price swings at $39.29 with percentage change of -0.58% in most recent trading session.

Profitability Valuation

The profit margin can answer significantly to find consistent trends in a firm’s earnings, the Co has negative -83.40% profit margin that indicates every dollar of sales a firm actually keeps in earnings, and the larger number indicates improving and vise worse. Gross profit margin, operating profit margin are its sub parts that firm has 87.30% and -79.50% respectively. Moving toward returns ratio, NBL has returns on investment of -14.60% which indicates firm’s investment efficiency or to compare the efficiency of a number of different investments.

While returns on assets calculated as -12.00% hat gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of -28.00%, which is measuring a corporation’s profitability by revealing how much profit generates by NBL with the shareholders’ money. The firm attains analyst recommendation of 2.20 on scale of 1-5 with week’s performance of -0.63%.

Moving toward ratio analysis, it has current ratio of 1.80 and quick ratio was calculated as 1.80. The debt to equity ratio appeared as 0.83 for seeing its liquidity position. The firm attains analyst recommendation of 2.20 out of 1-5 scale with week’s performance of -0.63%.

 

About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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