Eagle Rock Energy Partners (NASDAQ: EROC) shares currently have a dividend yield of 10.10%. Eagle Rock Energy Partners, L.P., together with its subsidiaries, engages in gathering, compressing, treating, processing, transporting, marketing, and trading natural gas, as well as fractionating and transporting natural gas liquids (NGL). The average volume for Eagle Rock Energy Partners has been 1,197,700 shares per day over the past 30 days. Eagle Rock Energy Partners has a market cap of $949.6 million and is part of the energy industry. Shares are down 1.2% year-to-date as of the close of trading on Monday. TheStreet Ratings rates Eagle Rock Energy Partners as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself. Highlights from the ratings report include:
- Currently the debt-to-equity ratio of 1.57 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. To add to this, EROC has a quick ratio of 0.66, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, EAGLE ROCK ENERGY PARTNRS LP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has declined marginally to $47.12 million or 4.28% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, EAGLE ROCK ENERGY PARTNRS LP has marginally lower results.
- EROC's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 36.62%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- EAGLE ROCK ENERGY PARTNRS LP has improved earnings per share by 24.4% 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, EAGLE ROCK ENERGY PARTNRS LP swung to a loss, reporting -$1.11 versus $0.38 in the prior year. This year, the market expects an improvement in earnings (-$0.07 versus -$1.11).
- You can view the full Eagle Rock Energy Partners Ratings Report.
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