FieldPoint Petroleum Corporation Stock Upgraded (FPP)

NEW YORK ( TheStreet) -- FieldPoint Petroleum Corporation (AMEX: FPP) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, good cash flow from operations, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • FPP's very impressive revenue growth greatly exceeded the industry average of 11.9%. Since the same quarter one year prior, revenues leaped by 89.4%. 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 FIELDPOINT PETROLEUM CORP is currently very high, coming in at 71.50%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 24.30% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 88.36% to $1.31 million when compared to the same quarter last year. In addition, FIELDPOINT PETROLEUM CORP has also vastly surpassed the industry average cash flow growth rate of 10.31%.
  • 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 110.9% when compared to the same quarter one year prior, rising from $0.38 million to $0.80 million.
  • FPP's debt-to-equity ratio of 0.69 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that FPP's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.73 is high and demonstrates strong liquidity.

FieldPoint Petroleum Corporation engages in the acquisition, development, and operation of oil and natural gas properties in the United States. The company's properties are primarily located in Louisiana, New Mexico, Oklahoma, south central Texas, and Wyoming. The company has a P/E ratio of 27.3, equal to the average energy industry P/E ratio and above the S&P 500 P/E ratio of 17.7. FieldPoint has a market cap of $28.4 million and is part of the basic materials sector and energy industry. Shares are down 18.8% year to date as of the close of trading on Wednesday.

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