NEW YORK (
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including generally poor debt management, disappointing return on equity and poor profit margins.
Highlights from the ratings report include:
- GEL's very impressive revenue growth exceeded the industry average of 39.7%. Since the same quarter one year prior, revenues leaped by 67.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 547.30% to $11.53 million when compared to the same quarter last year. In addition, GENESIS ENERGY -LP has also vastly surpassed the industry average cash flow growth rate of 35.89%.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, GENESIS ENERGY -LP's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for GENESIS ENERGY -LP is currently extremely low, coming in at 6.40%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.30% trails that of the industry average.
Genesis Energy, L.P., together with its subsidiaries, operates in the midstream segment of the oil and gas industry in the Gulf Coast area of the United States. The company operates through three divisions: Pipeline Transportation, Refinery Services, and Supply and Logistics. The company has a P/E ratio of 44.2, above the S&P 500 P/E ratio of 17.7. Genesis Energy has a market cap of $1.6 billion and is part of the
industry. Shares are down 16.4% year to date as of the close of trading on Friday.
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