NEW YORK (TheStreet) -- Shares of Dejour Energy Inc. (DEJ - Get Report) are higher 5.56% to $0.285 on Wednesday after the company announced gross production at its Woodrush oil project in British Colombia increased 60%.
The independent oil and natural gas exploration company said gross daily production at Woodrush is currently 540 boepd, compared to the 316 boepd produced daily during Q4 2013.
TheStreet Ratings team rates DEJOUR ENERGY INC as a Sell with a ratings score of E+. TheStreet Ratings Team has this to say about their recommendation:
Must Read: Why MediWound (MDWD) Stock Is Up Today
"We rate DEJOUR ENERGY INC (DEJ) a SELL. This is based on several weak investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 240.1% when compared to the same quarter one year ago, falling from -$1.37 million to -$4.64 million.
- The debt-to-equity ratio of 1.40 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with this, the company manages to maintain a quick ratio of 0.13, which clearly demonstrates the inability to cover short-term cash needs.
- 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, DEJOUR ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- DEJOUR ENERGY INC 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. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, DEJOUR ENERGY INC continued to lose money by earning -$0.07 versus -$0.09 in the prior year.
- The gross profit margin for DEJOUR ENERGY INC is rather high; currently it is at 57.83%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -236.71% is in-line with the industry average.
- You can view the full analysis from the report here: DEJ Ratings Report