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 compelling growth in net income, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the company's revenue growth has not been good.
Highlights from the ratings report include:
- 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 75.9% when compared to the same quarter one year prior, rising from $26.17 million to $46.03 million.
- The gross profit margin for HELIX ENERGY SOLUTIONS GROUP is rather high; currently it is at 54.50%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 12.40% trails the industry average.
- Net operating cash flow has slightly increased to $100.56 million or 1.22% when compared to the same quarter last year. Despite an increase in cash flow of 1.22%, HELIX ENERGY SOLUTIONS GROUP is still growing at a significantly lower rate than the industry average of 65.95%.
- The revenue fell significantly faster than the industry average of 39.8%. Since the same quarter one year prior, revenues slightly dropped by 5.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Energy Equipment & Services industry and the overall market, HELIX ENERGY SOLUTIONS GROUP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
Helix Energy Solutions Group, Inc., together with its subsidiaries, operates as an offshore energy company. It provides reservoir development solutions and other contracting services to the energy market, as well as to its oil and gas properties. The company has a P/E ratio of 25.8, equal to the average energy industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Helix Energy Solutions Group has a market cap of $1.58 billion and is part of the
industry. Shares are up 32.1% year to date as of the close of trading on Tuesday.
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