Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Southwestern Energy as such a stock due to the following factors:
- SWN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $183.3 million.
- SWN traded 27,570 shares today in the pre-market hours as of 9:09 AM.
- SWN is up 2.1% today from Friday's close.
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More details on SWN:
Southwestern Energy Company, an independent energy company, is engaged in the exploration, development and production of natural gas and oil in the United States. The company operates in two segments, Exploration and Production, and Midstream Services. SWN has a PE ratio of 19.2. Currently there are 6 analysts that rate Southwestern Energy a buy, 1 analyst rates it a sell, and 16 rate it a hold.
The average volume for Southwestern Energy has been 4.1 million shares per day over the past 30 days. Southwestern Energy has a market cap of $14.1 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.57 and a short float of 2.5% with 2.38 days to cover. Shares are up 1% year-to-date as of the close of trading on Friday.
rates Southwestern Energy as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 2.4%. Since the same quarter one year prior, revenues rose by 20.1%. 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.
- Net operating cash flow has increased to $585.13 million or 15.77% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -6.15%.
- The gross profit margin for SOUTHWESTERN ENERGY CO is rather high; currently it is at 57.70%. Regardless of SWN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SWN's net profit margin of 19.97% significantly outperformed against the industry.
- The current debt-to-equity ratio, 0.46, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that SWN's debt-to-equity ratio is low, the quick ratio, which is currently 0.60, displays a potential problem in covering short-term cash needs.
- 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. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, SOUTHWESTERN ENERGY CO has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full Southwestern Energy Ratings Report.