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Management s Discussion and Analysis of Financial Condition and Results of Operations and Part II, Item 7A. The Company undertakes no duty to publicly update these statements except as required by law. 4 PrimeEnergy Resources Corporation FORM 10-K ANNUAL REPORT For the Fiscal Year Ended December 31, 2025 PART I Item 1.
$187.36
+$0.85 (+0.46%)
Live · 08:53 PM
16.13% operating margin is respectable but not wide. ROIC at 12.44%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue declined 20.5% YoY. Margins deteriorated 13.8pp alongside, both lines moving the wrong way.
ROIC dropped from 30.11% to 12.44%, capital efficiency is deteriorating. Operating margin contracted 13.8pp YoY, cost discipline may be slipping.
20.9x earnings, 21.5x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$178M
▼ -20.5% YoY
Net Income (TTM)
$22M
▼ -52.5% YoY
Op. Margin
13.65%
▼ -13.8pp YoY
ROIC
9.93%
▼ -17.7pp YoY
Cash Flow & Balance Sheet
FCF (FY)
$21M
▲ +724.0% YoY
Op. Cash Flow (TTM)
$75M
▼ -16.5% YoY
Net Debt
-$19M
Net Cash Position
Cash & Equiv.
$19M
5Y CAGR: +26.5%
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At a P/E of 20.9 and a price-to-free-cash-flow of 21.5, PrimeEnergy Resources (PNRG) trades around a two-stage DCF intrinsic value of about $224.48 per share, so at $187.36 the stock looks around fair value (19.8% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, PrimeEnergy Resources scores 61/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $224.48 per share for PNRG, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $168.36. At today's $187.36, that puts the stock about 19.8% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
PrimeEnergy Resources scores 61 out of 100 on Intrinsiqq's quality score, a weighted blend of 7 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 13.6% operating margin and a 9.9% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
That depends on valuation and quality together, not either alone. PNRG currently trades around its estimated intrinsic value and scores 61/100 on quality (solid). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.