NEW YORK ( TheStreet) -- Tengasco (AMEX: TGC) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and feeble growth in its earnings per share. Highlights from the ratings report include:
- The gross profit margin for TENGASCO INC is rather high; currently it is at 57.30%. 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 -77.60% is in-line with the industry average.
- The current debt-to-equity ratio, 0.38, 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 0.75 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. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, TENGASCO INC's return on equity significantly trails that of both the industry average and the S&P 500.
- TENGASCO INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Stable Earnings per share over the past year indicate the company has sound management over its earnings and share float. During the past fiscal year, TENGASCO INC's EPS of -$0.04 remained unchanged from the prior years' EPS of -$0.04.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 170.2% when compared to the same quarter one year ago, falling from -$1.09 million to -$2.94 million.