New Lifetime High Reached: MarkWest Energy Partners (MWE)

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 MarkWest Energy Partners ( MWE) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified MarkWest Energy Partners as such a stock due to the following factors:

  • MWE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $42.3 million.
  • MWE has traded 666,870 shares today.
  • MWE is trading at a new lifetime high.

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More details on MWE:

Markwest Energy Partners, L.P., together with its subsidiaries, engages in the gathering, processing, and transportation of natural gas the United States. The stock currently has a dividend yield of 4.6%. MWE has a PE ratio of 152.4. Currently there are 9 analysts that rate MarkWest Energy Partners a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for MarkWest Energy Partners has been 805,700 shares per day over the past 30 days. MarkWest Energy has a market cap of $10.5 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.86 and a short float of 1.9% with 4.32 days to cover. Shares are up 43.4% year to date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates MarkWest Energy Partners as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Net operating cash flow has significantly increased by 90.73% to $92.55 million when compared to the same quarter last year. In addition, MARKWEST ENERGY PARTNERS LP has also vastly surpassed the industry average cash flow growth rate of -20.04%.
  • The gross profit margin for MARKWEST ENERGY PARTNERS LP is rather high; currently it is at 52.18%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, MWE's net profit margin of 20.16% significantly outperformed against the industry.
  • Compared to its closing price of one year ago, MWE's share price has jumped by 38.94%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • MWE, with its decline in revenue, slightly underperformed the industry average of 5.5%. Since the same quarter one year prior, revenues slightly dropped by 6.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • MWE's debt-to-equity ratio of 1.00 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.74 is weak.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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