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"We rate PRIMEENERGY CORP (PNRG) a BUY. This is driven by multiple 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 solid stock price performance, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, PNRG's share price has jumped by 36.05%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, PNRG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Net operating cash flow has significantly increased by 228.20% to $17.95 million when compared to the same quarter last year. In addition, PRIMEENERGY CORP has also vastly surpassed the industry average cash flow growth rate of -1.59%.
- 47.86% is the gross profit margin for PRIMEENERGY CORP which we consider to be strong. Regardless of PNRG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PNRG's net profit margin of 11.03% compares favorably to the industry average.
- PNRG, with its decline in revenue, underperformed when compared the industry average of 6.3%. Since the same quarter one year prior, revenues fell by 21.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: PNRG Ratings Report