NEW YORK (
-- BreitBurn Energy Partners
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and disappointing return on equity.
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 263.8% when compared to the same quarter one year ago, falling from $57.84 million to -$94.75 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, BREITBURN ENERGY PARTNERS LP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has increased to $54.40 million or 21.87% when compared to the same quarter last year. Despite an increase in cash flow, BREITBURN ENERGY PARTNERS LP's average is still marginally south of the industry average growth rate of 22.77%.
- The gross profit margin for BREITBURN ENERGY PARTNERS LP is currently very high, coming in at 389.80%. It has increased significantly from the same period last year. Along with this, the net profit margin of 745.80% significantly outperformed against the industry average.
- Compared to its closing price of one year ago, BBEP's share price has jumped by 32.31%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
BreitBurn Energy Partners L.P. engages in the acquisition, exploitation, and development of oil and gas properties in the United States. BreitBurn Energy has a market cap of $1.2 billion and is part of the
industry. Shares are down 2.8% year to date as of the close of trading on Wednesday.
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