Energy XXI (Bermuda) Ltd. Stock Upgraded (EXXI)
NEW YORK (
)
-- Energy XXI
(Nasdaq:
) 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, solid stock price performance, compelling growth in net income, attractive valuation levels and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- EXXI's very impressive revenue growth greatly exceeded the industry average of 29.6%. Since the same quarter one year prior, revenues leaped by 95.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 788.0% when compared to the same quarter one year prior, rising from $10.93 million to $97.09 million.
- The gross profit margin for ENERGY XXI (BERMUDA) is currently very high, coming in at 76.90%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 28.50% significantly outperformed against the industry average.
Energy XXI (Bermuda) Limited, together with its subsidiaries, engages in the acquisition, exploration, development, production, and operation of oil and natural gas properties onshore in Louisiana and Texas, and offshore in the Gulf of Mexico. The company has a P/E ratio of 26.9, below the average energy industry P/E ratio of 28 and above the S&P 500 P/E ratio of 17.7. Energy XXI has a market cap of $2.55 billion and is part of the
sector and
industry. Shares are up 6.4% year to date as of the close of trading on Thursday.
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