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 B- . The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 22.9%. Since the same quarter one year prior, revenues rose by 40.9%. 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 increased to $499.68 million or 30.36% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 3.13%.
- PIONEER NATURAL RESOURCES CO has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, PIONEER NATURAL RESOURCES CO reported lower earnings of $3.47 versus $4.02 in the prior year. This year, the market expects an improvement in earnings ($5.51 versus $3.47).
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, the stock's 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 the other strengths this company displays justify these higher price levels.
- 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 238.3% when compared to the same quarter one year ago, falling from $80.34 million to -$111.15 million.
Pioneer Natural Resources Company engages in the exploration and production of oil and gas in the United States and South Africa. The company produces and sells oil, natural gas liquids (NGL), and gas. The company has a P/E ratio of 36.2, above the average energy industry P/E ratio of 34.5 and above the S&P 500 P/E ratio of 17.7. Pioneer Natural has a market cap of $13.11 billion and is part of the
industry. Shares are up 19% 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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