Aegean Marine Petroleum Network Inc. Stock Upgraded
Monday, 07 May 2012 | 14:30
Aegean Marine Petroleum Network has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and increase in net income. However, as a counter to these strengths, we also find weaknesses including generally poor debt management, disappointing return on equity and poor profit margins.
Highlights from the ratings report include:
• The revenue growth came in higher than the industry average of 5.8%. Since the same quarter one year prior, revenues rose by 19.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
• The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Transportation Infrastructure industry. The net income increased by 152.5% when compared to the same quarter one year prior, rising from -$11.99 million to $6.29 million.
• AEGEAN MARINE PETROLM NETWK reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AEGEAN MARINE PETROLM NETWK reported lower earnings of $0.23 versus $0.39 in the prior year. This year, the market expects an improvement in earnings ($0.71 versus $0.23).
• The debt-to-equity ratio of 1.48 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, ANW maintains a poor quick ratio of 0.97, which illustrates the inability to avoid short-term cash problems.
• 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. Compared to other companies in the Transportation Infrastructure industry and the overall market on the basis of return on equity, AEGEAN MARINE PETROLM NETWK underperformed against that of the industry average and is significantly less than that of the S&P 500.
Aegean Marine Petroleum Network, Inc., together with its subsidiaries, operates as a marine fuel logistics company that supplies and markets refined marine fuel and lubricants to ships at ports, sea, and rivers. The company has a P/E ratio of 32.5, equal to the average wholesale industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Aegean Marine Petroleum Network has a market cap of $330.5 million and is part of the services sector and wholesale industry.
Source: Seeking Alpha
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