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) -- Encana (NYSE: ECA) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
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- ECA's very impressive revenue growth greatly exceeded the industry average of 3.1%. Since the same quarter one year prior, revenues leaped by 78.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ENCANA CORP 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 two years. During the past fiscal year, ENCANA CORP turned its bottom line around by earning $0.31 versus -$3.79 in the prior year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 126.9% when compared to the same quarter one year prior, rising from -$431.00 million to $116.00 million.
- Net operating cash flow has significantly increased by 178.99% to $943.00 million when compared to the same quarter last year. In addition, ENCANA CORP has also vastly surpassed the industry average cash flow growth rate of 16.76%.
- The gross profit margin for ENCANA CORP is rather high; currently it is at 55.44%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 6.13% trails the industry average.