Linn Energy (NASDAQ: LINE) shares currently have a dividend yield of 12.60%. Linn Energy, LLC, an independent oil and natural gas company, engages in the acquisition and development of oil and natural gas properties. The average volume for Linn Energy has been 4,313,000 shares per day over the past 30 days. Linn Energy has a market cap of $5.8 billion and is part of the energy industry. Shares are down 29.7% year to date as of the close of trading on Friday. TheStreet Ratings rates Linn Energy as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and a generally disappointing performance in the stock itself. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 10.1%. Since the same quarter one year prior, revenues slightly increased by 7.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for LINN ENERGY LLC is currently very high, coming in at 83.34%. It has increased significantly from the same period last year. Along with this, the net profit margin of 41.14% significantly outperformed against the industry average.
- LINN ENERGY LLC has improved earnings per share by 22.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, LINN ENERGY LLC swung to a loss, reporting -$1.86 versus $2.21 in the prior year. This year, the market expects an improvement in earnings ($0.94 versus -$1.86).
- The debt-to-equity ratio of 1.48 is relatively high when compared with the industry average, suggesting a need for better debt level management.
- 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, LINN ENERGY LLC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Linn Energy Ratings Report.
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