Total SA Stock Buy Recommendation Reiterated (TOT)

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) -- Total (NYSE: TOT) has been reiterated by TheStreet Ratings as a buy with a ratings score of A- . The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, attractive valuation levels, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 3.4%. Since the same quarter one year prior, revenues rose by 29.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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 36.8% when compared to the same quarter one year prior, rising from $2,495.48 million to $3,413.92 million.
  • Net operating cash flow has significantly increased by 192.85% to $8,281.29 million when compared to the same quarter last year. In addition, TOTAL SA has also vastly surpassed the industry average cash flow growth rate of 19.00%.
  • TOTAL SA has improved earnings per share by 35.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TOTAL SA reported lower earnings of $6.22 versus $7.05 in the prior year. This year, the market expects an improvement in earnings ($6.99 versus $6.22).

TOTAL S.A., together with its subsidiaries, operates as an integrated oil and gas company worldwide. The company operates in three segments: Upstream, Downstream, and Chemicals. Total has a market cap of $113.85 billion and is part of the basic materials sector and energy industry. The company has a P/E ratio of 7.2, below the S&P 500 P/E ratio of 17.7. Shares are down 3% year to date as of the close of trading on Thursday.

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

--Written by a member of TheStreet Ratings Staff.

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE
null

If you liked this article you might like

Energy Takes a Backseat as Crude Oil Stabilizes Under $50

China Might Ban the Gas-Powered Car

France Is About to Ban Oil Production and No One Will Even Notice

Gasoline Prices Stabilizing as Some Refineries Get Back Up to Speed