Rating Change #9
Cloud Peak Energy Inc
has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and poor profit margins.
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Highlights from the ratings report include:
- CLD, with its decline in revenue, slightly underperformed the industry average of 3.2%. Since the same quarter one year prior, revenues slightly dropped by 6.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for CLOUD PEAK ENERGY INC is rather low; currently it is at 24.90%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 7.51% trails that of the industry average.
- Net operating cash flow has decreased to $45.40 million or 46.14% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
Cloud Peak Energy Inc., through its subsidiaries, engages in the coal mining operations in the Powder River Basin (PRB) and the United States. It produces and sells sub-bituminous thermal coal with low sulfur content primarily to electric utilities. The company has a P/E ratio of 5.9, below the S&P 500 P/E ratio of 17.7. Cloud Peak Energy has a market cap of $1.02 billion and is part of the basic materials sector and metals & mining industry. Shares are down 13.8% year to date as of the close of trading on Tuesday.
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