Trade-Ideas: Energy XXI (EXXI) Is Today's Post-Market Leader Stock

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.

Trade-Ideas LLC identified Energy XXI ( EXXI) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Energy XXI as such a stock due to the following factors:

  • EXXI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $79.1 million.
  • EXXI is up 2.4% today from today's close.

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More details on EXXI:

Energy XXI (Bermuda) Limited is engaged in the acquisition, exploration, development, production, and operation of oil and natural gas properties onshore in Louisiana and Texas, and offshore in the Gulf of Mexico. As of May 15, 2014, the company had proved reserves of 179 MMBOE. The stock currently has a dividend yield of 3%. EXXI has a PE ratio of 24.6. Currently there are 6 analysts that rate Energy XXI a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Energy XXI has been 2.1 million shares per day over the past 30 days. Energy XXI has a market cap of $1.5 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.38 and a short float of 24.6% with 2.44 days to cover. Shares are down 42.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Energy XXI as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from the ratings report include:
  • EXXI's revenue growth has slightly outpaced the industry average of 2.6%. Since the same quarter one year prior, revenues slightly increased by 3.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for ENERGY XXI (BERMUDA) is rather high; currently it is at 66.19%. Regardless of EXXI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -0.55% trails the industry average.
  • Net operating cash flow has decreased to $99.54 million or 46.65% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • ENERGY XXI (BERMUDA) 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 reported a trend of declining earnings per share over the past two years. During the past fiscal year, ENERGY XXI (BERMUDA) reported lower earnings of $0.61 versus $1.84 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 102.9% when compared to the same quarter one year ago, falling from $62.05 million to -$1.82 million.

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