Penn West Petroleum (NYSE: PWE) shares currently have a dividend yield of 12.10%. Penn West Petroleum Ltd., an exploration and production company, engages in acquiring, exploring, developing, exploiting, and holding interests in petroleum and natural gas properties and related assets in western Canada. The company has a P/E ratio of 23.51. The average volume for Penn West Petroleum has been 2,539,300 shares per day over the past 30 days. Penn West Petroleum has a market cap of $4.2 billion and is part of the energy industry. Shares are down 17.1% year to date as of the close of trading on Wednesday. TheStreet Ratings rates Penn West Petroleum as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 1.1%. Since the same quarter one year prior, revenues rose by 21.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry average. The net income increased by 14.5% when compared to the same quarter one year prior, going from -$62.00 million to -$53.00 million.
- The current debt-to-equity ratio, 0.30, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.40 is very weak and demonstrates a lack of ability to pay short-term obligations.
- The gross profit margin for PENN WEST PETROLEUM LTD is rather low; currently it is at 22.60%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -7.96% is significantly below that of the industry average.
- Net operating cash flow has declined marginally to $441.00 million or 8.88% 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 Penn West Petroleum Ratings Report.
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