Trade-Ideas: Statoil ASA (STO) Is Today's Pre-Market Mover With Heavy Volume Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Statoil ASA ( STO) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Statoil ASA as such a stock due to the following factors:

  • STO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $37.2 million.
  • STO traded 235,041 shares today in the pre-market hours as of 8:44 AM, representing 14.5% of its average daily volume.

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More details on STO:

Statoil ASA, an integrated energy company, engages in the exploration, production, transportation, refining, and marketing of petroleum and petroleum-derived products in Norway and internationally. The stock currently has a dividend yield of 3.8%. STO has a PE ratio of 7.5. Currently there are 3 analysts that rate Statoil ASA a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Statoil ASA has been 1.5 million shares per day over the past 30 days. Statoil ASA has a market cap of $72.0 billion and is part of the basic materials sector and energy industry. Shares are down 9.8% year to date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Statoil ASA as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.38, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.86 is somewhat weak and could be cause for future problems.
  • 38.09% is the gross profit margin for STATOIL ASA which we consider to be strong. Regardless of STO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.93% trails the industry average.
  • STO, with its decline in revenue, underperformed when compared the industry average of 6.4%. Since the same quarter one year prior, revenues fell by 22.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 on the basis of return on equity, STATOIL ASA has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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