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 revenue growth, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 3.4%. Since the same quarter one year prior, revenues rose by 10.5%. 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 net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 126.9% when compared to the same quarter one year prior, rising from -$107.19 million to $28.83 million.
- 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 two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, PIONEER NATURAL RESOURCES CO reported lower earnings of $3.44 versus $6.37 in the prior year. This year, the market expects an improvement in earnings ($4.74 versus $3.44).
- 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.
- 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 0.54 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 $19.3 billion and is part of the basic materials sector and energy industry. The company has a P/E ratio of 642.00, above the S&P 500 P/E ratio of 18.00. Shares are up 32.5% 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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