Rating Change #9
VAALCO 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 largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
- EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.
Highlights from the ratings report include:
- EGY has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.22, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has increased to $49.16 million or 39.47% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 20.33%.
- The gross profit margin for VAALCO ENERGY INC is currently very high, coming in at 83.70%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -35.32% is in-line with the industry average.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 28.30%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 313.33% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, VAALCO ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
VAALCO Energy, Inc., an independent energy company, engages in the acquisition, exploration, development, and production of crude oil and natural gas. The company has a P/E ratio of 728, above the S&P 500 P/E ratio of 17.7. VAALCO Energy has a market cap of $421.6 million and is part of the basic materials sector and energy industry. Shares are down 18.8% year to date as of the close of trading on Thursday.
You can view the full
VAALCO Energy Ratings Report
or get investment ideas from our
investment research center