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NEW YORK (TheStreet) -- Tengasco (TGC - Get Report) has been downgraded by TheStreet Ratings from Hold to Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TENGASCO INC (TGC) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, feeble growth in its earnings per share, generally disappointing historical performance in the stock itself and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 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. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, TENGASCO INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- TENGASCO INC reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, TENGASCO INC reported lower earnings of $0.05 versus $0.07 in the prior year.
- TGC's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 52.09%, which is also worse than the performance of the S&P 500 Index. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- Net operating cash flow has declined marginally to $2.28 million or 3.14% when compared to the same quarter last year. Despite a decrease in cash flow of 3.14%, TENGASCO INC is in line with the industry average cash flow growth rate of -12.15%.
- The change in net income from the same quarter one year ago has significantly exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has decreased by 11.4% when compared to the same quarter one year ago, dropping from $0.48 million to $0.43 million.
- You can view the full analysis from the report here: TGC Ratings Report