NEW YORK ( TheStreet) -- Nustar GP Holdings (NYSE: NSH) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, feeble growth in its earnings per share, deteriorating net income and weak operating cash flow.
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- The share price of NUSTAR GP HOLDINGS LLC has not done very well: it is down 16.27% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- NUSTAR GP HOLDINGS LLC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, NUSTAR GP HOLDINGS LLC reported lower earnings of $1.64 versus $1.70 in the prior year. For the next year, the market is expecting a contraction of 48.5% in earnings ($0.85 versus $1.64).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 250.5% when compared to the same quarter one year ago, falling from $22.06 million to -$33.21 million.
- Net operating cash flow has significantly decreased to -$12.40 million or 153.15% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- NSH, with its very weak revenue results, has greatly underperformed against the industry average of 6.2%. Since the same quarter one year prior, revenues plummeted by 241.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
-- Written by a member of TheStreet Ratings Staff