U.S. Energy Corp. Stock Upgraded (USEG)

NEW YORK ( TheStreet) -- U.S. Energy (Nasdaq: USEG) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.

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Highlights from the ratings report include:
  • Net operating cash flow has significantly increased by 291.23% to $3.35 million when compared to the same quarter last year. In addition, U S ENERGY CORP/WY has also vastly surpassed the industry average cash flow growth rate of -25.61%.
  • The share price of U S ENERGY CORP/WY has not done very well: it is down 9.22% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 1448.0% when compared to the same quarter one year ago, falling from -$0.38 million to -$5.90 million.
  • 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, U S ENERGY CORP/WY's return on equity significantly trails that of both the industry average and the S&P 500.

U.S. Energy Corp., an independent energy company, focuses on the acquisition and development of oil and gas producing properties in the continental United States. The company operates in two segments, Oil and Gas and Maintenance of Mineral Properties. U.S. Energy has a market cap of $57.3 million and is part of the basic materials sector and energy industry. Shares are up 38% year to date as of the close of trading on Tuesday.

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

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