NEW YORK ( TheStreet) -- Ivanhoe Energy (Nasdaq: IVAN) has been downgraded by TheStreet Ratings from hold to sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself. Highlights from the ratings report include:
- Net operating cash flow has slightly increased to -$4.00 million or 3.09% when compared to the same quarter last year. In addition, IVANHOE ENERGY INC has also modestly surpassed the industry average cash flow growth rate of 0.88%.
- The gross profit margin for IVANHOE ENERGY INC is rather high; currently it is at 52.60%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -148.60% is in-line with the industry average.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, IVANHOE ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Oil, Gas & Consumable Fuels industry average. The net income increased by 23.1% when compared to the same quarter one year prior, going from -$11.92 million to -$9.16 million.
- IVAN has underperformed the S&P 500 Index, declining 16.62% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.