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Antero Resources Receives Mixed Ratings from Investors' Model

Antero Resources Corp (AR) receives a 58% rating under the Price/Sales Investor model, indicating mixed fundamental strength. Investors may view the stock cautiously as it fails key ratios including long-term EPS growth.

Date: 
AI Rating:   5

Overview of Antero Resources Corp

Antero Resources Corp (AR), classified within the Oil & Gas Operations industry, holds a rating of 58% based on the Price/Sales Investor model developed by Kenneth Fisher. This strategy emphasizes the importance of low price/sales ratios alongside strong free cash flow and profit margin stability.

Key Metrics

The report highlights several critical metrics concerning AR's financial health. It fails on key points including:

  • Price/Sales Ratio: This metric is flagged as a fail, suggesting that the stock may not be favorably priced relative to its sales.
  • Long-Term EPS Growth Rate: The company also fails to meet expectations in this area, which is frequently critical for growth-oriented investors.

Conversely, it has positive ratings in other areas that could attract investor interest:

  • Total Debt/Equity Ratio: This passes, indicating a sound balance sheet overall.
  • Free Cash Per Share: This passes, indicating potential cash availability for dividends or reinvestment.
  • Three-Year Average Net Profit Margin: This is favorable, implying consistent profitability over time.

Given that free cash flow and stable profit margins are deemed essential, this could be a reason some investors may find potential in AR despite its shortcomings.

Conclusion

Stocks:  AR