Perilous Reversal Stock: Southwestern Energy (SWN)
Trade-Ideas LLC identified Southwestern Energy ( SWN) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Southwestern Energy as such a stock due to the following factors:
- SWN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $286.2 million.
- SWN has traded 289,473 shares today.
- SWN is down 4.5% today.
- SWN was up 5.1% yesterday.
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More details on SWN: Southwestern Energy Company, an independent natural gas and oil company, explores for, develops, and produces natural gas and oil primarily in the United States. It operates through two segments, Exploration and Production and Midstream Services. Currently there is 1 analyst that rates Southwestern Energy a buy, 8 analysts rate it a sell, and 13 rate it a hold. The average volume for Southwestern Energy has been 20.9 million shares per day over the past 30 days. Southwestern Energy has a market cap of $5.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.17 and a short float of 25.7% with 4.00 days to cover. Shares are up 79.8% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Southwestern Energy as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk. Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 1551.3% when compared to the same quarter one year ago, falling from $78.00 million to -$1,132.00 million.
- 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, SOUTHWESTERN ENERGY CO's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for SOUTHWESTERN ENERGY CO is rather low; currently it is at 24.35%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -195.50% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to $92.00 million or 82.99% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- The debt-to-equity ratio is very high at 5.61 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 3.81, which shows the ability to cover short-term cash needs.
- You can view the full Southwestern Energy Ratings Report.
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