Buru Energy Ltd looks the most expensive among 39 stocks in Australia's energy sector, data from Thomson Reuters StarMine shows.
The firm fares badly on the Relative Valuation model with a score of 1. The lower the score, the more expensive the stock. It also has a poor Value-Momentum (Val-Mo) score of 9. Combined with a low Earnings Quality (EQ) score of 1, this suggests that the stock is overvalued.
Buru also has a SmartHoldings score of 28 which is below average for the sector.
Its Gross Margin and Free Cash Flow as a percent of sales for 2012 lag industry average by 284 percent and 1927 percent respectively.
The data includes companies in the sector tracked by at least three analysts. All the three analysts tracking the stock give it a 'strong buy' or 'buy' rating.
The stock is down more than 22 percent since July 31, while the broader index is up 1 percent for the same period as of Thursday's close.
StarMine's Relative Valuation model combines six different ratios that measure a company's valuation and then ranks it compared with all other stocks in the same region.
StarMine's Val-Mo model provides a 1-100 percentile ranking of stocks and rates companies based on a combination of value and momentum metrics.
A low score on StarMine's Earnings Quality model signals poor earnings sustainability over the next 12 months based on a company's past operating performance.
StarMine's SmartHoldings model is a global stock selection model that ranks stocks based on expected future increase or decrease in institutional ownership. (Reporting By Reshma Apte; Editing by Gopakumar Warrier)