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"We rate CARRIZO OIL & GAS INC (CRZO) a BUY. This is driven by a number of 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 stock price during the past year, increase in net income, good cash flow from operations 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:
- The revenue growth greatly exceeded the industry average of 6.7%. Since the same quarter one year prior, revenues rose by 36.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. 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.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 1753.3% when compared to the same quarter one year prior, rising from $4.52 million to $83.79 million.
- Net operating cash flow has significantly increased by 101.58% to $193.94 million when compared to the same quarter last year. In addition, CARRIZO OIL & GAS INC has also vastly surpassed the industry average cash flow growth rate of -2.53%.
- The gross profit margin for CARRIZO OIL & GAS INC is currently very high, coming in at 83.87%. Regardless of CRZO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CRZO's net profit margin of 42.70% significantly outperformed against the industry.
- You can view the full analysis from the report here: CRZO Ratings Report