NEW YORK (
-- W&T Offshore
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels, expanding profit margins, good cash flow from operations and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 25.1%. Since the same quarter one year prior, revenues rose by 40.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 124.5% when compared to the same quarter one year prior, rising from $20.52 million to $46.07 million.
- The gross profit margin for W&T OFFSHORE INC is currently very high, coming in at 75.10%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.60% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 74.45% to $125.43 million when compared to the same quarter last year. In addition, W&T OFFSHORE INC has also vastly surpassed the industry average cash flow growth rate of -18.34%.
W&T Offshore, Inc. engages in the acquisition, exploitation, exploration, and development of oil and natural gas properties primarily in the Gulf of Mexico. As of April 26, 2011, it had working interests in approximately 68 fields in federal waters, state waters, and onshore. The company has a P/E ratio of 12.3, above the average energy industry P/E ratio of 11 and below the S&P 500 P/E ratio of 17.7. W&T has a market cap of $1.6 billion and is part of the
industry. Shares are up 16.8% year to date as of the close of trading on Friday.
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-- Written by a member of TheStreet RatingsStaff