NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, compelling growth in net income, revenue growth, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated.
Highlights from the ratings report include:
- PROVIDENT ENERGY LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, PROVIDENT ENERGY LTD increased its bottom line by earning $0.38 versus $0.02 in the prior year.
- 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 111.7% when compared to the same quarter one year prior, rising from -$344.88 million to $40.22 million.
- PVX's revenue growth trails the industry average of 38.5%. Since the same quarter one year prior, revenues rose by 13.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has significantly increased by 111.33% to $26.44 million when compared to the same quarter last year. In addition, PROVIDENT ENERGY LTD has also vastly surpassed the industry average cash flow growth rate of 38.28%.
- Powered by its strong earnings growth of 275.00% and other important driving factors, this stock has surged by 26.96% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
Provident Energy Ltd. engages in the natural gas liquids (NGLs) infrastructure and marketing business in Canada and the United States. The company involves in the extraction, processing, storage, transportation, and marketing of NGLs, as well as offers these services to third party customers. Provident Energy has a market cap of $2.3 billion and is part of the
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