PNRGPrimeEnergy Resources Corporation
Is the business good?
The checks split: earnings fully cash-backed (4.0×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is PNRG?
PrimeEnergy Resources Corporation earns 12% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 2.7 points above what the capital costs: growth creates value
- Operating margin
- 16%
Operating margin · Oil & Gas E&P median 25% · 12 months to Q2 2026
- Cash conversion
- 3.96×
Cash conversion · 2.85× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −2.2%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −1.7% |
| FY2021 | 6.8% |
| FY2022 | 38% |
| FY2023 | 26% |
| FY2024 | 30% |
| FY2025 | 16% |
Details›
- Gross margin12 months to Q2 2026
- 97%
- Operating margin12 months to Q2 2026
- 16%
- Net margin12 months to Q2 2026
- 14%
- Free cash flow margin
- 28%
- Revenue, trailing twelve months
- $179M
- Free cash flow, trailing twelve months
- $50M
- Net income, trailing twelve months
- $25M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 12%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.