Statoil, Air Products: Ratings Changes
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BOSTON (
) -- Here are three downgrades from
TheStreet's
quantitative stock model.
3.
The model downgraded oil and gas transporter
Enbridge Energy Partners
(EEP)
to "hold."
The numbers
: Fourth-quarter net income decreased 40% to $73 million, and earnings per share fell 54% to 48 cents, hurt by a larger float. Revenue dropped 12% to $1.6 billion. The operating margin narrowed from 9.5% to 7.9%. The partnership holds $143 million of cash and $4.1 billion of debt.
The stock
: Enbridge Energy Partners has advanced 82% in the past year, outperforming major U.S. indices. The stock trades at a price-to-projected-earnings ratio of 17, a premium to oil and gas peers. It offers a 7.7% distribution yield. Distributions are taxed differently than dividends.
2.
The model downgraded gas-seller
Air Products & Chemicals
(APD) - Get Report
to "hold."
The numbers
: Fiscal first-quarter net income nearly quadrupled to $252 million, and earnings per share almost tripled to $1.16. Revenue declined 1% to $2.2 billion. The operating margin expanded from 13% to 15%. Air Products & Chemicals possesses $323 million of cash and $4.4 billion of debt.
The stock
: Air Products & Chemicals has increased 50% over the past 12 months, more than the
Dow Jones Industrial Average
, but less than the
S&P 500 Index
. The stock trades at a price-to-projected-earnings ratio of 12, a discount to competitors.
1.
The model downgraded integrated oil and gas company
Statoil
(STO)
to "hold."
The numbers
: Statoil swung to a fourth-quarter profit of $1.2 billion, or 38 cents a share, from a loss of $802 million, or 26 cents, a year earlier. Revenue soared 156% to $21 billion. The operating margin widened from 14% to 27%. Statoil holds $5.5 billion of cash and $34 billion of debt.
The stock
: Statoil has appreciated 37% in the past year, lagging behind U.S. benchmarks. The stock trades at a price-to-projected-earnings ratio of 11, a discount to peers. Its PEG ratio, a measure of value relative to growth, of 0.3 represents a 72% discount to the industry average.
-- Reported by Jake Lynch in Boston.
