EV Energy Partner LP Stock Downgraded (EVEP)

NEW YORK ( TheStreet) -- EV Energy Partner (Nasdaq: EVEP) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally poor debt management.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 22.7%. Since the same quarter one year prior, revenues rose by 38.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for EV ENERGY PARTNERS LP is rather high; currently it is at 64.90%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.50% is above that of the industry average.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, EV ENERGY PARTNERS LP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has declined marginally to $33.21 million or 0.52% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, EV ENERGY PARTNERS LP has marginally lower results.
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EV Energy Partners, L.P. engages in the acquisition, development, and production of oil and natural gas properties in the United States. The company has a P/E ratio of 26.7, below the average energy industry P/E ratio of 40.8 and above the S&P 500 P/E ratio of 17.7. EV Energy Partner has a market cap of $2.19 billion and is part of the basic materials sector and energy industry. Shares are up 9.4% year to date as of the close of trading on Friday.

You can view the full EV Energy Partner Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet Ratings Staff
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