NEW YORK ( TheStreet) -- Eastern American Natural Gas (NYSE: NGT) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- NGT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 9.11, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for EASTERN AMERN NATURAL GAS TR is currently very high, coming in at 85.50%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 74.50% significantly outperformed against the industry average.
- 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. In comparison to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, EASTERN AMERN NATURAL GAS TR has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
- The revenue fell significantly faster than the industry average of 23.8%. Since the same quarter one year prior, revenues slightly dropped by 6.8%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
-- Written by a member of TheStreet RatingsStaff