NEW YORK ( TheStreet) -- Genesis Energy (NYSE: GEL) 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, good cash flow from operations, increase in net income and increase in stock price during the past year. 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:
  • GEL's very impressive revenue growth exceeded the industry average of 38.1%. Since the same quarter one year prior, revenues leaped by 67.1%. 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 significantly increased by 547.30% to $11.53 million when compared to the same quarter last year. In addition, GENESIS ENERGY -LP has also vastly surpassed the industry average cash flow growth rate of 39.19%.
  • GENESIS ENERGY -LP's earnings per share declined by 6.9% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, GENESIS ENERGY -LP reported lower earnings of $0.49 versus $0.51 in the prior year. This year, the market expects an improvement in earnings ($1.07 versus $0.49).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Oil, Gas & Consumable Fuels industry average, but is greater than that of the S&P 500. The net income increased by 21.9% when compared to the same quarter one year prior, going from $14.24 million to $17.36 million.
  • After a year of stock price fluctuations, the net result is that GEL's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

Genesis Energy, L.P., together with its subsidiaries, operates in the midstream segment of the oil and gas industry in the Gulf Coast area of the United States. The company operates through three divisions: Pipeline Transportation, Refinery Services, and Supply and Logistics. The company has a P/E ratio of 51.2, above the S&P 500 P/E ratio of 17.7. Genesis Energy has a market cap of $1.9 billion and is part of the basic materials sector and energy industry. Shares are down 0.9% year to date as of the close of trading on Monday.

You can view the full Genesis Energy Ratings Report or get investment ideas from our investment research center.