NEW YORK ( TheStreet) -- Pyramid Oil Company (AMEX: PDO) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- PYRAMID OIL CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, PYRAMID OIL CO increased its bottom line by earning $0.23 versus $0.05 in the prior year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 1374.1% when compared to the same quarter one year prior, rising from -$0.03 million to $0.34 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 26.0%. Since the same quarter one year prior, revenues rose by 18.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- PDO's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 9.34, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for PYRAMID OIL CO is rather high; currently it is at 57.50%. It has increased significantly from the same period last year. Along with this, the net profit margin of 24.60% significantly outperformed against the industry average.
-- Written by a member of TheStreet RatingsStaff