NEW YORK (
-- Atlas Energy
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, good cash flow from operations, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 23.0%. Since the same quarter one year prior, revenues rose by 36.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- ATLAS ENERGY LP has improved earnings per share by 42.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ATLAS ENERGY LP turned its bottom line around by earning $1.00 versus -$0.43 in the prior year. This year, the market expects an improvement in earnings ($1.93 versus $1.00).
- Net operating cash flow has significantly increased by 333.12% to $27.38 million when compared to the same quarter last year. In addition, ATLAS ENERGY LP has also vastly surpassed the industry average cash flow growth rate of 3.78%.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ATLAS ENERGY LP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
Atlas Energy, L.P., a midstream energy service company, engages in the gathering and processing of natural gas in the Mid-Continent and Appalachia regions. The company has a P/E ratio of 29.8, above the average utilities industry P/E ratio of 26.9 and above the S&P 500 P/E ratio of 17.7. Atlas Energy has a market cap of $1.3 billion and is part of the
industry. Shares are up 9.5% year to date as of the close of trading on Friday.
You can view the full
or get investment ideas from our
-- Written by a member of TheStreet RatingsStaff