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- The gross profit margin for VENOCO INC is currently very high, coming in at 71.20%. Regardless of VQ's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VQ's net profit margin of 16.30% compares favorably to the industry average.
- VENOCO INC's earnings per share declined by 22.6% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, VENOCO INC reported lower earnings of $0.97 versus $1.24 in the prior year. This year, the market expects an improvement in earnings ($1.01 versus $0.97).
- VQ, with its decline in revenue, slightly underperformed the industry average of 2.7%. Since the same quarter one year prior, revenues slightly dropped by 3.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, VENOCO INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, VQ has underperformed the S&P 500 Index, declining 6.55% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it is one of the factors that makes this stock an attractive investment.
-- Written by a member of TheStreet Ratings Staff
Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model