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NEW YORK (TheStreet) -- Hallador Energy (HNRG - Get Report) 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 HALLADOR ENERGY CO (HNRG) 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 robust revenue growth and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- HNRG's very impressive revenue growth greatly exceeded the industry average of 20.4%. Since the same quarter one year prior, revenues leaped by 85.1%. 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.
- Compared to its closing price of one year ago, HNRG's share price has jumped by 38.90%, exceeding the performance of the broader market during that same time frame. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
- Currently the debt-to-equity ratio of 1.89 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Even though the debt-to-equity ratio is weak, HNRG's quick ratio is somewhat strong at 1.37, demonstrating the ability to handle short-term liquidity needs.
- HALLADOR ENERGY CO 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, HALLADOR ENERGY CO reported lower earnings of $0.80 versus $0.83 in the prior year. For the next year, the market is expecting a contraction of 46.3% in earnings ($0.43 versus $0.80).
- 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 219.4% when compared to the same quarter one year ago, falling from $4.83 million to -$5.77 million.
- You can view the full analysis from the report here: HNRG Ratings Report