Rentech Nitrogen Partners (NYSE: RNF) shares currently have a dividend yield of 12.60%. 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 11.67. The average volume for Rentech Nitrogen Partners has been 178,800 shares per day over the past 30 days. Rentech Nitrogen Partners has a market cap of $1.1 billion and is part of the chemicals industry. Shares are down 29.7% year to date as of the close of trading on Wednesday. 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, weak operating cash flow, generally high debt management risk, generally disappointing historical performance in the stock itself 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 significantly decreased by 30.3% when compared to the same quarter one year ago, falling from $41.23 million to $28.72 million.
- Net operating cash flow has significantly decreased to $0.45 million or 97.41% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The debt-to-equity ratio is very high at 3.03 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, RNF has managed to keep a strong quick ratio of 2.06, which demonstrates the ability to cover short-term cash needs.
- The share price of RENTECH NITROGEN PARTNERS LP has not done very well: it is down 23.49% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- RENTECH NITROGEN PARTNERS LP's earnings per share declined by 31.5% 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 34.2% in earnings ($1.83 versus $2.78).
- You can view the full Rentech Nitrogen Partners Ratings Report.
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