What To Hold: 3 Hold-Rated Dividend Stocks ETR, AINV, LINE
Linn Energy (NASDAQ: LINE) shares currently have a dividend yield of 9.30%. 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 1,749,200 shares per day over the past 30 days. Linn Energy has a market cap of $10.3 billion and is part of the energy industry. Shares are up 1.2% 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 and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 7.7%. Since the same quarter one year prior, revenues slightly increased by 9.7%. 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 slightly increased to $225.70 million or 9.31% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -23.43%.
- LINN ENERGY LLC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, LINN ENERGY LLC reported poor results of -$2.78 versus -$1.86 in the prior year. This year, the market expects an improvement in earnings ($1.58 versus -$2.78).
- Currently the debt-to-equity ratio of 1.52 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. 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.
- Our dividend calendar.
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