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 good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.
Highlights from the ratings report include:
- Net operating cash flow has significantly increased by 307.79% to $1.52 million when compared to the same quarter last year. In addition, ROYALE ENERGY INC has also vastly surpassed the industry average cash flow growth rate of 35.50%.
- Although ROYL's debt-to-equity ratio of 0.26 is very low, it is currently higher than that of the industry average. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.89 is somewhat weak and could be cause for future problems.
- The gross profit margin for ROYALE ENERGY INC is currently very high, coming in at 72.10%. Regardless of ROYL'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 7.40% trails the industry average.
- 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 the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ROYALE ENERGY INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- 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 75.9% when compared to the same quarter one year ago, falling from $1.08 million to $0.26 million.
Royale Energy, Inc. operates as an independent oil and natural gas producer in the United States. The company has a P/E ratio of 31.6, below the average energy industry P/E ratio of 35.5 and above the S&P 500 P/E ratio of 17.7. Royale Energy has a market cap of $30.6 million and is part of the
industry. Shares are up 33.9% year to date as of the close of trading on Tuesday.
You can view the full
or get investment ideas from our