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NEW YORK ( TheStreet) -- Hallador Energy (Nasdaq: HNRG) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

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Highlights from the ratings report include:
  • HNRG's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.08, which clearly demonstrates the ability to cover short-term cash needs.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 35.5% when compared to the same quarter one year ago, falling from $5.47 million to $3.53 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, HALLADOR ENERGY CO's return on equity is significantly below that of the industry average and is below that of the S&P 500.

Hallador Energy Company, through its subsidiary, Sunrise Coal, LLC, is engaged in the mining, production, and sale of steam coal for the electric power generation industry in the United States. Hallador Energy has a market cap of $247.7 million and is part of the basic materials sector and metals & mining industry. Shares are up 8.2% year to date as of the close of trading on Thursday.

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

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