Mid-Con Energy Partners LP Stock Upgraded (MCEP)

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.

NEW YORK ( TheStreet) -- Mid-Con Energy Partners (Nasdaq: MCEP) has been upgraded by TheStreet Ratings from hold to buy. Among the primary strengths of the company is its expanding profit margins over time. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • The gross profit margin for MID-CON ENERGY PARTNERS -LP is rather high; currently it is at 58.40%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, MCEP's net profit margin of 19.78% significantly outperformed against the industry.
  • MID-CON ENERGY PARTNERS -LP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, MID-CON ENERGY PARTNERS -LP reported lower earnings of $1.44 versus $1.63 in the prior year. This year, the market expects an improvement in earnings ($1.69 versus $1.44).
  • MCEP, with its decline in revenue, underperformed when compared the industry average of 1.3%. Since the same quarter one year prior, revenues fell by 14.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Net operating cash flow has declined marginally to $13.61 million or 6.86% when compared to the same quarter last year. Despite a decrease in cash flow of 6.86%, MID-CON ENERGY PARTNERS -LP is in line with the industry average cash flow growth rate of -6.88%.
  • 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 Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, MID-CON ENERGY PARTNERS -LP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

Mid-Con Energy Partners, LP is engaged in the acquisition, exploitation, development, and production of oil and natural gas properties in North America. Mid-Con Energy has a market cap of $486.3 million and is part of the basic materials sector and energy industry. Shares are down 1.2% year to date as of the close of trading on Wednesday.

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

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

More from Markets

Volkswagen's Audi CEO Arrested in Diesel Emissions Probe

Volkswagen's Audi CEO Arrested in Diesel Emissions Probe

China Trade War, Google, JD.com, Tesla, Brooks Koepka - 5 Things You Must Know

China Trade War, Google, JD.com, Tesla, Brooks Koepka - 5 Things You Must Know

Cryptocurrencies Could 'Bring the Internet to a Halt', Central Bank Agency Warns

Cryptocurrencies Could 'Bring the Internet to a Halt', Central Bank Agency Warns

Global Stocks Retreat as U.S.-China Trade War Intensifies

Global Stocks Retreat as U.S.-China Trade War Intensifies

Billionaire Investor Tim Draper Explains Why Bitcoin Will Hit $250,000 in 2022

Billionaire Investor Tim Draper Explains Why Bitcoin Will Hit $250,000 in 2022