Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a hold with a ratings score of C . The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.
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Highlights from the ratings report include:
- Net operating cash flow has slightly increased to $1,999.00 million or 8.81% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.70%.
- The gross profit margin for ANADARKO PETROLEUM CORP is rather high; currently it is at 66.00%. Regardless of APC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, APC's net profit margin of -2.80% significantly underperformed when compared to the industry average.
- 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 116.4% when compared to the same quarter one year ago, falling from $544.00 million to -$89.00 million.
- 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, ANADARKO PETROLEUM CORP's return on equity significantly trails that of both the industry average and the S&P 500.
Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of natural gas, crude oil, condensate, and natural gas liquids(NGLs) in the United States, Algeria, and internationally. Anadarko has a market cap of $36.07 billion and is part of the basic materials sector and energy industry. The company has a P/E ratio of -26.4, below the S&P 500 P/E ratio of 17.7. Shares are down 5.8% year to date as of the close of trading on Thursday.
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--Written by a member of TheStreet Ratings Staff.
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