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 downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally high debt management risk.
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Highlights from the ratings report include:
- 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 50.3% when compared to the same quarter one year ago, falling from $9.17 million to $4.56 million.
- Despite currently having a low debt-to-equity ratio of 0.56, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.44 is very low and demonstrates very weak liquidity.
- Compared to its closing price of one year ago, BXE's share price has jumped by 53.23%, exceeding the performance of the broader market during that same time frame. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
- BELLATRIX EXPLORATION LTD's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, BELLATRIX EXPLORATION LTD turned its bottom line around by earning $0.24 versus -$0.13 in the prior year.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 10.6%. Since the same quarter one year prior, revenues fell by 10.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
Bellatrix Exploration Ltd. engages in the acquisition, exploration, development, and production of oil and natural gas properties in Canada. It holds interests in properties located in Alberta, British Columbia, and Saskatchewan. The company has a P/E ratio of 107.2, above the S&P 500 P/E ratio of 17.7. Bellatrix has a market cap of $587.1 million and is part of the basic materials sector and energy industry. Shares are up 27.1% year to date as of the close of trading on Friday.
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-- Written by a member of TheStreet Ratings Staff
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