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) -- Bellatrix Exploration (AMEX: BXE) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.
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- BXE's very impressive revenue growth greatly exceeded the industry average of 1.1%. Since the same quarter one year prior, revenues leaped by 64.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 161.53% and other important driving factors, this stock has surged by 48.37% over the past year, outperforming the rise in the S&P 500 Index during the same period. Although BXE had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- BELLATRIX EXPLORATION LTD 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 year. During the past fiscal year, BELLATRIX EXPLORATION LTD turned its bottom line around by earning $0.24 versus -$0.13 in the prior year.
- In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, BELLATRIX EXPLORATION LTD's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- Despite currently having a low debt-to-equity ratio of 0.52, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.76 is weak.
-- Written by a member of TheStreet Ratings Staff