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 robust revenue growth, increase in stock price during the past year, expanding profit margins, good cash flow from operations and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
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Highlights from the ratings report include:
- ESV's very impressive revenue growth greatly exceeded the industry average of 13.1%. Since the same quarter one year prior, revenues leaped by 90.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The gross profit margin for ENSCO PLC is rather high; currently it is at 54.30%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 31.80% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 815.61% to $463.30 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 -50.73%.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 234.9% when compared to the same quarter one year prior, rising from $101.90 million to $341.30 million.
Ensco plc provides offshore contract drilling services to the oil and gas industry worldwide. The company has a P/E ratio of 12.5, below the average energy industry P/E ratio of 12.7 and below the S&P 500 P/E ratio of 17.7. Ensco has a market cap of $13.43 billion and is part of the
industry. Shares are up 23.4% 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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