Following my posts on value analysis I figured maybe I'll post a few of these here and if they get some interest I'll probably post more (feedback is useful here). PVAC is the Penn Virginia Corporation - a growing company whose business is primarily NGL and NG. I've been pouring over PVACs 10-Qs recently as the company came up on my screens for undervalued stocks. Starting off with some Graham-based analysis: The P/E ratio is relatively low compared to it's competing energy companies. When I entered the trade the P/B was 0.86. This is low even for the industry. It's important to compare P/B in-industry as each industry has different P/B characteristics based on the way they handle accounting. Few analysts cover it and never makes the news. This means banks aren't looking at it. Comparing their free cash flow to similar growth energy companies such as XOG and MR they are performing relatively well. While their FCF is still negative, they are expanding so this wasn't as much of an alarm. An interesting aspect of these companies is their involvement in derivative markets. I tend to look at their derivative investments as a sign of company health relative to their total sales. As an example of this comparison, MR appeared to derive most of their earnings from profits on derivatives, with their LNG/NG business lagging y/y. PVAC didn't seem remarkable in this regard. In fact, they've apparently derived most of their business from selling their product. Their quarter-by-quarter total revenue across each of their products is improving. I took a look at their Asset-To-Equity ratio. I find this ratio useful as it gives a gauge of how much stuff they own versus how much stuff they have. If the company liquidates, the ratio is useful to see just how much shareholders could see back. Interestingly enough their Asset-To-Equity ratio is around 2.34. So they are running around 2x leverage relative to what shareholders can get back. They are very slightly more leveraged than MR for example. However, what intrigued me was a few things. Their free cash flow, while still negative (indicating they are growing, but with debt) was significantly larger than their less leveraged partners. Additionally, while being more leveraged, they present (to me) less risk in total because they are deriving their income primarily from sales. This seemed to be reflected in the notes as well. Comparing them to MR, their accounting process was far more simple. MR used a new accounting method for their 10-Q that obscured some of the details which were not clarified in the notes. I always read the notes and take my own notes on them, and MR rubbed me the wrong way. Finally, PVACs return on invested capital is exceptionally high at 27.05%. While this number can't be totally trusted, this is a good indicator of a great value company in the presence of the other metrics above. In general, I think PVAC is a pretty good buy especially in the near term due to the increased demand on heating oil with the recent cold fronts. I don't have any problem saying they should not have a problem handling an increased demand. I've got a near term target of $33.71, but I would not be surprised if they went further in the next year. Their last earnings report missed EPS but crushed revenue. I am looking at LEAPS on PVAC. Obligatory this is not financial advice and not a trade recommendation.