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
NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, expanding profit margins, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
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Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Oil, Gas & Consumable Fuels industry average. The net income increased by 47.7% when compared to the same quarter one year prior, rising from $245.81 million to $363.01 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 15.0%. Since the same quarter one year prior, revenues slightly increased by 6.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 37.26% is the gross profit margin for YACIMIENTOS PETE FISCALES SA which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.39% trails the industry average.
- Net operating cash flow has increased to $846.09 million or 14.85% when compared to the same quarter last year. Despite an increase in cash flow, YACIMIENTOS PETE FISCALES SA's cash flow growth rate is still lower than the industry average growth rate of 38.60%.
- 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. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, YACIMIENTOS PETE FISCALES SA has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
YPF Sociedad Anonima, an energy company, is engaged in the exploration, development, and production of crude oil, natural gas, and liquefied petroleum gas (LPG) in Argentina. YPF Sociedad Anonima has a market cap of $11.48 billion and is part of the basic materials sector and energy industry. Shares are down 11.8% year to date as of the close of trading on Thursday.
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