Atwood Oceanics (ATW) Falling In After-Hours Activity

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 Atwood Oceanics ( ATW) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Atwood Oceanics as such a stock due to the following factors:

  • ATW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $62.6 million.
  • ATW is down 3.2% today from today's close.

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More details on ATW:

Atwood Oceanics, Inc., an offshore drilling contractor, engages in the drilling and completion of exploratory and developmental oil and gas wells worldwide. The stock currently has a dividend yield of 2.7%. ATW has a PE ratio of 7.1. Currently there are 3 analysts that rate Atwood Oceanics a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Atwood Oceanics has been 1.5 million shares per day over the past 30 days. Atwood Oceanics has a market cap of $2.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.45 and a short float of 6.3% with 2.12 days to cover. Shares are down 32.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Atwood Oceanics as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 16.0%. Since the same quarter one year prior, revenues rose by 10.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for ATWOOD OCEANICS is rather high; currently it is at 59.01%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 34.69% significantly outperformed against the industry average.
  • ATW's debt-to-equity ratio of 0.69 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that ATW's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.97 is high and demonstrates strong liquidity.
  • Net operating cash flow has declined marginally to $101.37 million or 7.56% 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.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Energy Equipment & Services industry and the overall market, ATWOOD OCEANICS's return on equity is below that of both the industry average and the S&P 500.

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