Berry is an energy exploration company based in Dallas, Texas, focusing on oil and natural gas reserves in California and Utah, employing 1,282 staff since its IPO on July 14, 2017. It operates through exploration and production, as well as well servicing and abandonment segments, with several subsidiaries.
Based on our analysis, Berry has received an undervalued rating of 4 out of 5 stars from Cashu due to several key financial ratios that indicate strong performance relative to its sector.
The Price-to-Earnings (PE) ratio for Berry stands at 4.11, significantly lower than the sector average of 9.62. A lower PE ratio suggests that the stock may be undervalued compared to its earnings, implying potential for price appreciation.
Berry's Price-to-Book (PB) ratio of 0.70 also highlights this undervaluation, as it is well below the sector average of 1.56. This indicates that the stock is trading for less than its book value, suggesting investors may be overlooking its intrinsic worth.
The company's net profit margin of 4.14% contrasts sharply with the sector's -2.44%, demonstrating that Berry is generating profits while many peers are operating at a loss. This profitability is further underscored by a return on equity (ROE) of 4.93%, compared to the sector's -3.61%, signaling efficient management and effective use of shareholder funds.
Berry also boasts an impressive dividend yield of 18.25%, far exceeding the sector average of 3.48%. This high yield reflects the company's commitment to returning value to shareholders.
Finally, Berry's return on assets (ROA) of 2.35% is markedly higher than the sector's -4.30%, indicating effective asset utilization to generate earnings.
These financial metrics collectively suggest that Berry is currently undervalued in the market, presenting a potential opportunity for investors.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Energy
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