This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

TSC Ratings' Updates: Marathon Oil

Revenue rose by 29% since the year-ago quarter, and EPS improved. We feel the company is poised for EPS growth in the coming year. First Mercury's debt-to-equity ratio of 0.2 is below the industry average, implying very successful management of debt levels. The 22.3% gross profit margin, however, is rather low, having decreased from the same quarter last year. Net operating cash flow declined marginally to $26.1 million.

We've upgraded Marathon Oil (MRO - Get Report) from hold to buy, driven by its attractive valuation levels, considering its current price compared to earnings, book value and other measures. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Revenue fell by 45.3% since the same quarter a year prior, and EPS decreased. Net income fell by 61.4% to $282 million but significantly outperformed the S&P 500 and the oil, gas and consumable fuels industry average. Marathon's gross profit margin of 16.3% is rather low, though it has increased from the year-ago period. The net profit margin of 3.1% trails the industry average. Net operating cash flow fell 32.5% to $555 million compared with the year-ago quarter but exceeded the industry average cash flow growth rate of -43.2%.

We've downgraded Starent Networks (STAR - Get Report) from buy to hold. Strengths include the company's robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, we find that we feel that the company's cash flow from its operations has been weak overall.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,461.51 -217.19 -1.23%
S&P 500 2,042.01 -15.08 -0.73%
NASDAQ 4,719.1180 -52.6450 -1.10%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs