The firm said it lowered its rating on the company, which owns, operates, develops, and acquired crude oil and refined products logistics assets, based on a valuation call.
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Separately, TheStreet Ratings team rates TESORO LOGISTICS LP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TESORO LOGISTICS LP (TLLP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, good cash flow from operations, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- TLLP's very impressive revenue growth greatly exceeded the industry average of 3.1%. Since the same quarter one year prior, revenues leaped by 142.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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 138.2% when compared to the same quarter one year prior, rising from $18.68 million to $44.50 million.
- Net operating cash flow has significantly increased by 137.91% to $70.67 million when compared to the same quarter last year. In addition, TESORO LOGISTICS LP has also vastly surpassed the industry average cash flow growth rate of 17.43%.
- The gross profit margin for TESORO LOGISTICS LP is rather high; currently it is at 65.87%. Regardless of TLLP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TLLP's net profit margin of 35.58% significantly outperformed against the industry.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, TESORO LOGISTICS LP has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
- You can view the full analysis from the report here: TLLP Ratings Report