Isramco Inc. Stock Upgraded (ISRL)

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

NEW YORK ( TheStreet) -- Isramco (Nasdaq: ISRL) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 2.7%. Since the same quarter one year prior, revenues slightly increased by 9.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ISRAMCO 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, ISRAMCO INC turned its bottom line around by earning $2.72 versus -$1.02 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 91.4% when compared to the same quarter one year prior, rising from $1.30 million to $2.49 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ISRAMCO INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 49.00% is the gross profit margin for ISRAMCO INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.60% significantly outperformed against the industry average.

Isramco, Inc., an independent oil and natural gas company, together with its subsidiaries, engages in the acquisition, development, production, and exploration of onshore oil and natural gas properties in the United States. The company has a P/E ratio of 20.1, above the average energy industry P/E ratio of 19.6 and above the S&P 500 P/E ratio of 17.7. Isramco has a market cap of $283 million and is part of the basic materials sector and energy industry. Shares are up 21% year to date as of the close of trading on Thursday.

You can view the full Isramco Ratings Report or get investment ideas from our investment research center.

-- 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
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