NEW YORK (
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally poor debt management and premium valuation.
Highlights from the ratings report include:
- RAM's very impressive revenue growth greatly exceeded the industry average of 36.9%. Since the same quarter one year prior, revenues leaped by 73.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 650.00% and other important driving factors, this stock has surged by 64.13% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, RAM ENERGY RESOURCES INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
- The debt-to-equity ratio is very high at 11.50 and currently higher than the industry average, implying that there is very poor management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.37, which clearly demonstrates the inability to cover short-term cash needs.
RAM Energy Resources, Inc., an independent oil and natural gas company, together with its subsidiaries, engages in the acquisition, development, exploitation, exploration, and production of oil and natural gas properties in Texas, Oklahoma, and Louisiana. The company has a P/E ratio of 37.9, below the average energy industry P/E ratio of 43.3 and above the S&P 500 P/E ratio of 17.7. RAM Energy has a market cap of $238.8 million and is part of the
industry. Shares are down 3.5% year to date as of the close of trading on Friday.
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