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, expanding profit margins 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 7.1%. Since the same quarter one year prior, revenues rose by 21.1%. 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.
- The gross profit margin for PIONEER NATURAL RESOURCES CO is rather high; currently it is at 63.00%. Regardless of PXD's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.70% trails the industry average.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, PIONEER NATURAL RESOURCES CO increased its bottom line by earning $6.37 versus $3.97 in the prior year. For the next year, the market is expecting a contraction of 39.9% in earnings ($3.83 versus $6.37).
- PXD's debt-to-equity ratio of 0.63 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that PXD's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.65 is low and demonstrates weak liquidity.
Pioneer Natural Resources Company operates as an independent oil and gas exploration and production company in the United States and South Africa. The company produces and sells oil, natural gas liquid (NGL), and gas. Pioneer Natural has a market cap of $13.09 billion and is part of the basic materials sector and energy industry. The company has a P/E ratio of 48.3, above the S&P 500 P/E ratio of 17.7. Shares are up 18.7% year to date as of the close of trading on Wednesday.
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--Written by a member of TheStreet Ratings Staff.
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