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 Ensco as such a stock due to the following factors:
- ESV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $176.0 million.
- ESV traded 11,031 shares today in the pre-market hours as of 9:26 AM.
- ESV is up 4% today from yesterday's close.
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More details on ESV:
Ensco plc provides offshore contract drilling services to the oil and gas industry worldwide. The company operates through three segments: Floaters, Jackups, and Other. The stock currently has a dividend yield of 8%. ESV has a PE ratio of 19.4. Currently there is 1 analyst that rates Ensco a buy, 3 analysts rate it a sell, and 9 rate it a hold.
The average volume for Ensco has been 4.5 million shares per day over the past 30 days. Ensco has a market cap of $8.8 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.82 and a short float of 10.8% with 5.73 days to cover. Shares are down 31.9% year-to-date as of the close of trading on Tuesday.
rates Ensco as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.9%. Since the same quarter one year prior, revenues slightly increased by 6.4%. 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 $504.80 million or 14.18% when compared to the same quarter last year. Despite an increase in cash flow, ENSCO PLC's average is still marginally south of the industry average growth rate of 17.80%.
- The gross profit margin for ENSCO PLC is rather high; currently it is at 52.12%. Regardless of ESV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ESV's net profit margin of -97.48% significantly underperformed when compared to the industry average.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Energy Equipment & Services industry and the overall market, ENSCO PLC's return on equity significantly trails that of both the industry average and the S&P 500.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 28.47%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 281.75% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- You can view the full Ensco Ratings Report.