Vanguard Natural Resources (NYSE: VNR) shares currently have a dividend yield of 8.60%. Vanguard Natural Resources, LLC, through its subsidiaries, engages in the acquisition and development of oil and natural gas properties in the United States. The average volume for Vanguard Natural Resources has been 539,900 shares per day over the past 30 days. Vanguard Natural Resources has a market cap of $1.9 billion and is part of the energy industry. Shares are up 8.7% year to date as of the close of trading on Thursday. TheStreet Ratings rates Vanguard Natural Resources as a hold. Among the primary strengths of the company is its revenue growth. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity. Highlights from the ratings report include:
- VNR's very impressive revenue growth greatly exceeded the industry average of 1.3%. Since the same quarter one year prior, revenues leaped by 404.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- VANGUARD NATURAL RESOURCES has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, VANGUARD NATURAL RESOURCES swung to a loss, reporting -$2.76 versus $2.12 in the prior year. This year, the market expects an improvement in earnings ($1.41 versus -$2.76).
- In its most recent trading session, VNR has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- 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, VANGUARD NATURAL RESOURCES's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has declined marginally to $45.33 million or 4.00% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full Vanguard Natural Resources Ratings Report.
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