Why GasLog (GLOG) Stock Is Still a 'Buy'

NEW YORK (TheStreet) -- TheStreet Ratings team reiterated its "buy" rating for GasLog (GLOG) Monday, making recent weaknesses a possible buying opportunity.

Shares of GasLog were falling -8.3% to $28.23.

More than 4.3 million shares of GasLog were traded Monday, more than double the average daily trading volume of about 1.5 million shares.

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TheStreet Ratings team rates GASLOG LTD as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate GASLOG LTD (GLOG) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, solid stock price performance 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."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • GLOG's very impressive revenue growth greatly exceeded the industry average of 3.2%. Since the same quarter one year prior, revenues leaped by 162.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income increased by 7.7% when compared to the same quarter one year prior, going from $5.89 million to $6.35 million.
  • Net operating cash flow has significantly increased by 412.38% to $16.05 million when compared to the same quarter last year. In addition, GASLOG LTD has also vastly surpassed the industry average cash flow growth rate of 17.65%.
  • Compared to its closing price of one year ago, GLOG's share price has jumped by 137.46%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • The gross profit margin for GASLOG LTD is currently very high, coming in at 70.31%. Regardless of GLOG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GLOG's net profit margin of 11.12% compares favorably to the industry average.
  • You can view the full analysis from the report here: GLOG Ratings Report

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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.

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Strong On High Volume: GasLog (GLOG)