RE:Is PXT Undervalued? Here are my reason for believing PXT isI agree, I believe that Parex is undervalued, but for different reasons.
My view is that EPS and P/E is important, but not as important as FFO for a company like Parex which is returning a majority of their earnings to shareholders in the form of a healthy Dividend and Agressive Share Buyback program.
There are companies that have a lower EPS than Dividend payout, yet they can sustain their dividend as long as their Cashflow and FFO provide a payout ratio under 100%.
Another huge indicator is that Parex is funding almost 100% of their CapEx from operations and hence has almost Zero debt.
Some have indicated that Parex has not been having good drilling success. That is a falacy and/or misleading information. Parex has been drilling between 40 to 60 plus gross wells per year.
A poster, can't recall who, tried to stipulate that they are 0 for 5 in past drilling success. Total rubbish. Anyway, as long as the company continues purchasing their own shares, they believe their shares are undervalued. I believe they are too.