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 B . The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, expanding profit margins, good cash flow from operations and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
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Highlights from the ratings report include:
- ESV's very impressive revenue growth greatly exceeded the industry average of 11.6%. 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.
- Powered by its strong earnings growth of 149.15% and other important driving factors, this stock has surged by 25.48% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ESV should continue to move higher despite the fact that it has already enjoyed a very nice gain 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 -49.70%.
- 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. Ensco has a market cap of $13.73 billion and is part of the basic materials sector and energy industry. The company has a P/E ratio of 12.8, below the S&P 500 P/E ratio of 17.7. Shares are up 26.2% year to date as of the close of trading on Tuesday.
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--Written by a member of TheStreet Ratings Staff.
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