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

Bonanza Creek Energy

(

BCEI

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Bonanza Creek Energy as such a stock due to the following factors:

  • BCEI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.9 million.
  • BCEI has traded 1.1 million shares today.
  • BCEI is trading at a new lifetime high.

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More details on BCEI:

Bonanza Creek Energy, Inc. operates as an independent oil and natural gas company in the United States. BCEI has a PE ratio of 45.1. Currently there are 9 analysts that rate Bonanza Creek Energy a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Bonanza Creek Energy has been 406,800 shares per day over the past 30 days. Bonanza Creek Energy has a market cap of $1.9 billion and is part of the basic materials sector and energy industry. Shares are up 65.7% year to date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Bonanza Creek Energy as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations 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:

  • BCEI's very impressive revenue growth greatly exceeded the industry average of 6.4%. Since the same quarter one year prior, revenues leaped by 64.3%. 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 $49.54 million or 28.00% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -15.70%.
  • The current debt-to-equity ratio, 0.49, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.94 is somewhat weak and could be cause for future problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, BONANZA CREEK ENERGY INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The change in net income from the same quarter one year ago has exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has significantly decreased by 31.6% when compared to the same quarter one year ago, falling from $21.51 million to $14.72 million.

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