- The debt-to-equity ratio is very high at 2.48 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Energy Equipment & Services industry and the overall market, FORBES ENERGY SERVICES LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for FORBES ENERGY SERVICES LTD is rather low; currently it is at 24.70%. Regardless of FES's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, FES's net profit margin of -1.17% significantly underperformed when compared to the industry average.
- FORBES ENERGY SERVICES LTD has improved earnings per share by 46.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FORBES ENERGY SERVICES LTD swung to a loss, reporting -$0.63 versus $0.01 in the prior year. This year, the market expects an improvement in earnings (-$0.25 versus -$0.63).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Energy Equipment & Services industry average. The net income increased by 52.6% when compared to the same quarter one year prior, rising from -$2.73 million to -$1.29 million.
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. All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 61 points (0.4%) at 16,694 as of Thursday, May 29, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,757 issues advancing vs. 1,207 declining with 183 unchanged. The Energy industry as a whole closed the day up 0.8% versus the S&P 500, which was up 0.4%. Top gainers within the Energy industry included PostRock Energy ( PSTR), up 6.4%, WSP Holdings ( WH), up 16.6%, Forbes Energy Services ( FES), up 2.6%, Isramco ( ISRL), up 1.6% and New Concept Energy ( GBR), up 1.7%. TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today: Forbes Energy Services ( FES) is one of the companies that pushed the Energy industry higher today. Forbes Energy Services was up $0.10 (2.6%) to $4.00 on light volume. Throughout the day, 3,828 shares of Forbes Energy Services exchanged hands as compared to its average daily volume of 28,100 shares. The stock ranged in a price between $3.97-$4.03 after having opened the day at $3.98 as compared to the previous trading day's close of $3.90. Forbes Energy Services Ltd., an independent oilfield services contractor, provides a range of well site services for oil and natural gas drilling and producing companies to develop and enhance the production of oil and natural gas in the United States. Forbes Energy Services has a market cap of $85.7 million and is part of the basic materials sector. Shares are up 19.3% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Forbes Energy Services a buy, no analysts rate it a sell, and 1 rates it a hold. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings rates Forbes Energy Services as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity and poor profit margins. Highlights from TheStreet Ratings analysis on FES go as follows: