NEW YORK ( TheStreet) -- Endeavor International Corporation (NYSE: END) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, unimpressive growth in net income, weak operating cash flow, generally weak debt management and feeble growth in its earnings per share. Highlights from the ratings report include:
- The share price of ENDEAVOUR INTERNATIONAL CORP has not done very well: it is down 15.83% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- 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 441.3% when compared to the same quarter one year ago, falling from -$11.69 million to -$63.29 million.
- Net operating cash flow has significantly decreased to -$4.75 million or 169.38% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Currently the debt-to-equity ratio of 1.94 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Regardless of the company's weak debt-to-equity ratio, END has managed to keep a strong quick ratio of 1.70, which demonstrates the ability to cover short-term cash needs.
- ENDEAVOUR INTERNATIONAL CORP 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ENDEAVOUR INTERNATIONAL CORP turned its bottom line around by earning $1.11 versus -$5.95 in the prior year. For the next year, the market is expecting a contraction of 200.0% in earnings (-$1.11 versus $1.11).