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. NEW YORK ( TheStreet) -- Equal Energy (NYSE: EQU) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share and deteriorating net income.
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- Compared to its closing price of one year ago, EQU's share price has jumped by 64.06%, exceeding the performance of the broader market during that same time frame.
- EQU's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, EQU has a quick ratio of 1.65, which demonstrates the ability of the company to cover short-term liquidity needs.
- Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, EQUAL ENERGY LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- EQUAL ENERGY LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, EQUAL ENERGY LTD reported lower earnings of $0.17 versus $0.82 in the prior year.
- 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 95.7% when compared to the same quarter one year ago, falling from $61.83 million to $2.65 million.