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 buy with a ratings score of A-. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
- EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass
Highlights from the ratings report include:
- ESV's revenue growth has slightly outpaced the industry average of 7.8%. Since the same quarter one year prior, revenues slightly increased by 8.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.36, which illustrates the ability to avoid short-term cash problems.
- ENSCO PLC has improved earnings per share by 5.0% 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, ENSCO PLC increased its bottom line by earning $5.23 versus $2.91 in the prior year. This year, the market expects an improvement in earnings ($6.69 versus $5.23).
- The gross profit margin for ENSCO PLC is rather high; currently it is at 51.70%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 20.22% is above that of the industry average.
- Net operating cash flow has significantly increased by 81.50% to $599.50 million when compared to the same quarter last year. In addition, ENSCO PLC has also vastly surpassed the industry average cash flow growth rate of 28.40%.
Ensco plc provides offshore contract drilling services to the oil and gas industry worldwide. The company operates through three segments: Floaters, Jackups, and Other. Ensco PLC Class A has a market cap of $12.4 billion and is part of the basic materials sector and energy industry. The company has a P/E ratio of 10.00, below the S&P 500 P/E ratio of 18.00. Shares are down 8.9% year to date as of the close of trading on Monday.
You can view the full
or get investment ideas from our
--Written by a member of TheStreet Ratings Staff.
Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.