- Net operating cash flow has significantly decreased to -$1.01 million or 197.34% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- LEI's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 48.52%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, LUCAS ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- LEI, with its decline in revenue, underperformed when compared the industry average of 3.2%. Since the same quarter one year prior, revenues fell by 29.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- LEI's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.46 is very weak and demonstrates a lack of ability to pay short-term obligations.
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. The Energy industry as a whole closed the day down 0.4% versus the S&P 500, which was unchanged. Laggards within the Energy industry included Sonde Resources ( SOQ), down 1.7%, CKX Lands ( CKX), down 3.7%, PostRock Energy ( PSTR), down 2.0%, Lucas Energy ( LEI), down 4.3% and Escalera Resources ( ESCR), down 1.6%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today: Lucas Energy ( LEI) is one of the companies that pushed the Energy industry lower today. Lucas Energy was down $0.02 (4.3%) to $0.56 on light volume. Throughout the day, 52,242 shares of Lucas Energy exchanged hands as compared to its average daily volume of 113,000 shares. The stock ranged in price between $0.55-$0.59 after having opened the day at $0.57 as compared to the previous trading day's close of $0.58. Lucas Energy, Inc. operates as an independent oil and gas company in Texas. Lucas Energy has a market cap of $19.4 million and is part of the basic materials sector. Shares are down 39.9% year-to-date as of the close of trading on Tuesday. 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 Lucas Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself. Highlights from TheStreet Ratings analysis on LEI go as follows: