NEW YORK ( TheStreet) -- Tengasco (AMEX: TGC) 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, revenue growth, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • TENGASCO INC 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, TENGASCO INC turned its bottom line around by earning $0.09 versus -$0.04 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 173.6% when compared to the same quarter one year prior, rising from -$2.94 million to $2.16 million.
  • TGC's revenue growth trails the industry average of 25.7%. Since the same quarter one year prior, revenues rose by 13.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The gross profit margin for TENGASCO INC is rather high; currently it is at 65.30%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 50.50% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 83.33% to $2.11 million when compared to the same quarter last year. In addition, TENGASCO INC has also vastly surpassed the industry average cash flow growth rate of -3.72%.

Tengasco, Inc. engages in the acquisition, exploration, and development of oil and natural gas in North America. Its primary area of oil exploration and production is in Kansas, and gas production is the Swan Creek field in Tennessee. The company has a P/E ratio of 11.8, below the average energy industry P/E ratio of 11.9 and below the S&P 500 P/E ratio of 17.7. Tengasco has a market cap of $57.7 million and is part of the basic materials sector and energy industry. Shares are up 29.3% year to date as of the close of trading on Friday.

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-- Written by a member of TheStreet RatingsStaff