What's Driving Crescent Point Energy Corp's Surprising 20% Stock Rally?

Over the past week, Crescent Point Energy Corp (CPG, Financial) has seen a gain of 3.62% in its stock price, and over the past three months, the stock has surged by an impressive 20.10%. Currently, the company's market cap stands at $4.37 billion, with a stock price of $8.18. According to the GF Value, which is currently at $7.41, the stock is fairly valued. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. This valuation is consistent with the stock's valuation three months ago, which also indicated that the stock was fairly valued.

Understanding Crescent Point Energy Corp

Crescent Point Energy Corp is a key player in the Oil & Gas industry. As an independent exploration and production company, it is primarily engaged in acquiring, developing, and holding interests in petroleum and natural gas properties and assets. The company's business model revolves around oil and gas sales, which generate the majority of its revenue. 1711400546016952320.png

Profitability Analysis

With a Profitability Rank of 4/10, Crescent Point Energy Corp demonstrates moderate profitability. The company's Operating Margin of 39.33% is better than 82.99% of companies in the same industry. Furthermore, the company's ROE, ROA, and ROIC, which stand at 5.88%, 3.88%, and 11.42% respectively, indicate a decent return on investments. Over the past 10 years, the company's profitability has been better than 41.13% of companies in the same industry. 1711400562349572096.png

Growth Prospects

Despite its moderate profitability, Crescent Point Energy Corp's Growth Rank of 2/10 indicates slow growth. The company's 3-year and 5-year revenue growth rates per share are 9.90% and 0.60% respectively. However, the company's future total revenue growth rate is estimated to be -8.98% over the next 3 to 5 years. 1711400579240034304.png

Major Stock Holders

The top two holders of Crescent Point Energy Corp's stock are Jim Simons (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio), who hold 565,587 and 147,638 shares respectively. This represents 0.11% and 0.03% of the company's total shares.

Competitive Landscape

In the Oil & Gas industry, Crescent Point Energy Corp faces stiff competition from PrairieSky Royalty Ltd, Enerplus Corp, and Baytex Energy Corp, which have market caps of $4.27 billion, $3.47 billion, and $3.41 billion respectively.

Conclusion

In conclusion, Crescent Point Energy Corp's stock performance has been impressive over the past three months, with a gain of 20.10%. The company's profitability is moderate, with an operating margin better than 82.99% of companies in the same industry. However, its growth prospects are slow, with a growth rank of 2/10. Despite the competition in the Oil & Gas industry, the company's future prospects look promising, given its decent return on investments and fair valuation.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.