Rating Change #7
Brigham Exploration Company (BEXP) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- BEXP's very impressive revenue growth greatly exceeded the industry average of 38.6%. Since the same quarter one year prior, revenues leaped by 185.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- BRIGHAM EXPLORATION CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BRIGHAM EXPLORATION CO turned its bottom line around by earning $0.38 versus -$2.68 in the prior year. This year, the market expects an improvement in earnings ($1.39 versus $0.38).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 283.4% when compared to the same quarter one year prior, rising from $18.47 million to $70.84 million.
- The gross profit margin for BRIGHAM EXPLORATION CO is currently very high, coming in at 85.40%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 55.30% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 130.12% to $94.23 million when compared to the same quarter last year. In addition, BRIGHAM EXPLORATION CO has also vastly surpassed the industry average cash flow growth rate of 38.26%.
Brigham Exploration Company engages in the exploration, development, and production of onshore oil and natural gas reserves in the Rocky Mountains, the Gulf Coast, the Anadarko Basin, and west Texas. The company has a P/E ratio of 42.5, equal to the average energy industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Brigham has a market cap of $3.6 billion and is part of the basic materials sector and energy industry. Shares are up 12.2% year to date as of the close of trading on Tuesday.You can view the full Brigham Ratings Report or get investment ideas from our investment research center.