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NEW YORK (TheStreet) -- Transmontaigne Partners (TLP) has been downgraded by TheStreet Ratings from Buy to Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TRANSMONTAIGNE PARTNERS LP (TLP) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry average. The net income increased by 8.6% when compared to the same quarter one year prior, going from $6.00 million to $6.52 million.
- The gross profit margin for TRANSMONTAIGNE PARTNERS LP is rather high; currently it is at 52.70%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.26% significantly outperformed against the industry average.
- The debt-to-equity ratio is somewhat low, currently at 0.63, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.97 is somewhat weak and could be cause for future problems.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, TRANSMONTAIGNE PARTNERS LP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- TLP has underperformed the S&P 500 Index, declining 14.41% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- You can view the full analysis from the report here: TLP Ratings Report