Why PetroChina (PTR) Stock Is Up Today

NEW YORK (TheStreet) -- Shares of PetroChina Co.  (PTR) are up 0.99% to $139.71 after it was earlier reported that China's largest energy firm is reviewing its multi-billion-dollar effort to produce liquefied natural gas to fuel trucks and ships in place of diesel, as it shut two loss-making gas liquefaction plants, sources told Reuters.

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

"We rate PETROCHINA CO LTD (PTR) a BUY. This is driven by several positive factors, 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 attractive valuation levels, good cash flow from operations, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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

  • Net operating cash flow has increased to $3,307.54 million or 20.18% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -6.58%.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • PETROCHINA CO LTD's earnings per share declined by 5.0% 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, PETROCHINA CO LTD increased its bottom line by earning $11.70 versus $10.11 in the prior year. This year, the market expects an improvement in earnings ($11.76 versus $11.70).
  • The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.21 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • You can view the full analysis from the report here: PTR Ratings Report
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