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, expanding profit margins, good cash flow from operations, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 9.7%. Since the same quarter one year prior, revenues rose by 25.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for EQT CORP is rather high; currently it is at 63.10%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.78% is above that of the industry average.
- Net operating cash flow has increased to $305.24 million or 37.41% when compared to the same quarter last year. In addition, EQT CORP has also vastly surpassed the industry average cash flow growth rate of -23.08%.
- 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 39.2% when compared to the same quarter one year prior, rising from $72.04 million to $100.26 million.
- Powered by its strong earnings growth of 37.50% and other important driving factors, this stock has surged by 69.48% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
EQT Corporation, together with its subsidiaries, operates as an integrated energy company in the United States. It operates in three segments: EQT Production, EQT Midstream, and Distribution. EQT has a market cap of $12.1 billion and is part of the utilities sector and utilities industry. The company has a P/E ratio of 58.00, above the S&P 500 P/E ratio of 18.00. Shares are up 36.6% 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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