Vanguard Natural Resources (NASDAQ: VNR) shares currently have a dividend yield of 8.90%. Vanguard Natural Resources, LLC, through its subsidiaries, engages in the acquisition and development of oil and natural gas properties in the United States. The average volume for Vanguard Natural Resources has been 448,800 shares per day over the past 30 days. Vanguard Natural Resources has a market cap of $2.2 billion and is part of the energy industry. Shares are up 7.9% year to date as of the close of trading on Thursday. TheStreet Ratings rates Vanguard Natural Resources as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, deteriorating net income 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 6.4%. Since the same quarter one year prior, revenues rose by 15.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $60.71 million or 17.92% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -15.63%.
- The gross profit margin for VANGUARD NATURAL RESOURCES is currently very high, coming in at 79.20%. Regardless of VNR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VNR's net profit margin of 46.36% significantly outperformed against the industry.
- In its most recent trading session, VNR has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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.
- 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, VANGUARD NATURAL RESOURCES's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Vanguard Natural Resources Ratings Report.
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