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TheStreet Ratings team rates HUGOTON ROYALTY TRUST as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate HUGOTON ROYALTY TRUST (HGT) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income increased by 0.9% when compared to the same quarter one year prior, going from $10.05 million to $10.14 million.
- HGT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign.
- Despite the weak revenue results, HGT has outperformed against the industry average of 19.6%. Since the same quarter one year prior, revenues slightly dropped by 2.4%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
- HUGOTON ROYALTY TRUST reported flat earnings per share in the most recent quarter. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, HUGOTON ROYALTY TRUST increased its bottom line by earning $0.87 versus $0.58 in the prior year.
- HGT has underperformed the S&P 500 Index, declining 16.46% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- You can view the full analysis from the report here: HGT Ratings Report