Rentech Nitrogen Partners (NYSE: RNF) shares currently have a dividend yield of 6.10%. Rentech Nitrogen Partners, L.P. engages in the manufacture and sale of nitrogen fertilizer products for use in the United States. The company operates in two segments, East Dubuque and Pasadena. The company has a P/E ratio of 12.47. The average volume for Rentech Nitrogen Partners has been 406,300 shares per day over the past 30 days. Rentech Nitrogen Partners has a market cap of $1.3 billion and is part of the chemicals industry. Shares are down 12.5% year to date as of the close of trading on Friday. TheStreet Ratings rates Rentech Nitrogen Partners as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk and feeble growth in its earnings per share. Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Chemicals industry. The net income has decreased by 22.5% when compared to the same quarter one year ago, dropping from $19.37 million to $15.01 million.
- The debt-to-equity ratio is very high at 2.16 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
- RENTECH NITROGEN PARTNERS LP's earnings per share declined by 25.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, RENTECH NITROGEN PARTNERS LP increased its bottom line by earning $2.78 versus $0.36 in the prior year. For the next year, the market is expecting a contraction of 7.9% in earnings ($2.56 versus $2.78).
- 42.60% is the gross profit margin for RENTECH NITROGEN PARTNERS LP which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, RNF's net profit margin of 25.19% compares favorably to the industry average.
- Compared to its closing price of one year ago, RNF's share price has jumped by 39.64%, exceeding the performance of the broader market during that same time frame. Despite the fact that the stock's value has already enjoyed nice gains in the past year, we feel that the risks surrounding an investment in this stock outweigh any potential future returns.
- You can view the full Rentech Nitrogen Partners Ratings Report.
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