Rentech Nitrogen Partners

Dividend Yield: 9.90%

Rentech Nitrogen Partners (NYSE: RNF) shares currently have a dividend yield of 9.90%.

Rentech Nitrogen Partners, L.P. engages in the manufacture and sale of nitrogen fertilizer products for use in the United States. The company operates in two segments, East Dubuque and Pasadena. The company has a P/E ratio of 10.85.

The average volume for Rentech Nitrogen Partners has been 451,900 shares per day over the past 30 days. Rentech Nitrogen Partners has a market cap of $1.2 billion and is part of the chemicals industry. Shares are down 16.6% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Rentech Nitrogen Partners as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and poor profit margins.

Highlights from the ratings report include:
  • Currently the debt-to-equity ratio of 1.77 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with the unfavorable debt-to-equity ratio, RNF maintains a poor quick ratio of 0.92, which illustrates the inability to avoid short-term cash problems.
  • The gross profit margin for RENTECH NITROGEN PARTNERS LP is currently lower than what is desirable, coming in at 33.50%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 18.99% is above that of the industry average.
  • RENTECH NITROGEN PARTNERS LP 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, RENTECH NITROGEN PARTNERS LP increased its bottom line by earning $2.78 versus $0.36 in the prior year. For the next year, the market is expecting a contraction of 4.1% in earnings ($2.67 versus $2.78).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 422.6% when compared to the same quarter one year prior, rising from $3.36 million to $17.56 million.
  • Net operating cash flow has improved to $17.34 million from having none in the same quarter last year. Since the company had no net operating cash flow for the prior period, we cannot calculate a percent change in order to compare its growth rate with that of its industry average.

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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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