PAA Natural Gas Storage L.P (NYSE: PNG) shares currently have a dividend yield of 7.10%. PAA Natural Gas Storage, L.P. engages in the ownership, acquisition, development, operation, and commercial management of natural gas storage facilities in the United States. The company has a P/E ratio of 19.86. The average volume for PAA Natural Gas Storage L.P has been 111,100 shares per day over the past 30 days. PAA Natural Gas Storage L.P has a market cap of $1.2 billion and is part of the utilities industry. Shares are up 2.8% year to date as of the close of trading on Friday. TheStreet Ratings rates PAA Natural Gas Storage L.P as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, increase in net income, growth in earnings per share and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 10.7%. Since the same quarter one year prior, revenues rose by 18.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- 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 12.2% when compared to the same quarter one year prior, going from $16.02 million to $17.97 million.
- PAA NATURAL GAS STORAGE LP has improved earnings per share by 9.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, PAA NATURAL GAS STORAGE LP increased its bottom line by earning $0.99 versus $0.83 in the prior year. For the next year, the market is expecting a contraction of 5.0% in earnings ($0.94 versus $0.99).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, PAA NATURAL GAS STORAGE LP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full PAA Natural Gas Storage L.P Ratings Report.
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