Rentech Nitrogen Partners (NYSE: RNF) shares currently have a dividend yield of 11.10%. 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 11.59. The average volume for Rentech Nitrogen Partners has been 191,900 shares per day over the past 30 days. Rentech Nitrogen Partners has a market cap of $1.2 billion and is part of the chemicals industry. Shares are down 14.7% year to date as of the close of trading on Monday. 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, weak operating cash flow 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. To add to this, RNF has a quick ratio of 0.63, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- Net operating cash flow has decreased to $22.17 million or 37.72% when compared to the same quarter last year. Despite a decrease in cash flow RENTECH NITROGEN PARTNERS LP is still fairing well by exceeding its industry average cash flow growth rate of -69.14%.
- 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 14.4% in earnings ($2.38 versus $2.78).
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Regardless of the rise in share value over the previous year, we feel that the risks involved in investing in this stock do not compensate for any future upside potential.
- You can view the full Rentech Nitrogen Partners Ratings Report.
- Our dividend calendar.
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