If Cash Is King, Is Sundance Energy Australia Limited (ASX:SEA)’s 38.89% Enough?

Sundance Energy Australia Limited (ASX:SEA) has seen year over year cash flow change of 38.89%.  This is calculated as the one year percentage growth of the firm’s cash flow from operations from their publicly filed statement of cash flows.  Cash reserves are an important element for an investor to consider when analyzing a stock.  A continued reduction in cash flow could spell trouble for a firm while on the other hand solid continued cash flow growth should translate into stock growth.

In taking a look at some other key growth stats we note that the one year Growth EBIT ratio stands at -18.78% for Sundance Energy Australia Limited (ASX:SEA) and is a calculation of one year growth in earnings before interest and taxes. The one year EBITDA growth number stands at 3.38% which is calculated similarly to EBIT Growth with just the addition of amortization.

Taking even a further look we note that the 1 year Free Cash Flow (FCF) Growth is at 16.06%. The one year growth in Net Profit after Tax is 22.09% and lastly sales growth was 32.52%.

In looking at some key ratios we note that the Piotroski F Score stands at 5 (1 to 10 scale) and the ERP5 rank holds steady at 13148. The Q.I. Value of Sundance Energy Australia Limited (ASX:SEA) currently reads 62 on the Quant scale. The Free Cash Flow score of 1.525402 is also swinging some momentum at investors. The Australia based firm is currently valued at 1561.

Some other notable ratios include the Accrual Ratio of -0.188105, the Altman Z score of 0.893523, a Montier C-Score of 2 and a Value Composite rank of 45.

Investor Target Weight

Sundance Energy Australia Limited (ASX:SEA) has a present suggested portfolio ownership rate of 0.0194 (as a decimal) ownership. Target weight is the volatility adjusted recommended position size for a stock in your portfolio. The maximum target weight is 7% for any given holding. The indicator is based off of the 100 day volatility reading and calculates a target weight accordingly. The more recent volatility of a stock, the lower the target weight will be. The 3-month volatility stands at 61.7008 (decimal). This is the normal returns and standard deviation of the stock price over three months annualized.

Diving down into some additional near-term indicators we see that the Capex to PPE ratio stands at 0.272669 for Sundance Energy Australia Limited (ASX:SEA). The Capex to PPE ratio shows you how capital intensive a company is. Stocks with an increasing (year over year) ratio may be moving to be more capital intensive and often underperform the market. Higher Capex also often means lower Free Cash Flow (Operating cash flow – Capex) generation and lower dividends as companies don’t have the cash to pay dividends if they are investing more in the business.

In addition to Capex to PPE we can look at Cash Flow to Capex. This ration compares a stock’s operating cash flow to its capital expenditure and can identify if a firm can generate enough cash to meet investment needs. Investors are looking for a ratio greater than one, which indicates that the firm can meet that need. Comparing to other firms in the same industry is relevant for this ratio. Sundance Energy Australia Limited (ASX:SEA)’s Cash Flow to Capex stands at 0.680055.