![]() The net income has significantly decreased by 297.6% when compared to the same quarter one year ago, falling from $17.41 million to -$34.41 million. 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.In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower. Net operating cash flow has decreased to $34.54 million or 10.32% when compared to the same quarter last year.Highlights from the ratings report include: However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and weak operating cash flow. The company's strengths can be seen in multiple areas, such as its solid stock price performance and expanding profit margins. The Motley Fool has a disclosure policy.) has been downgraded by TheStreet Ratings from buy to hold. Ĭopyright © 1995 - 2011 The Motley Fool, LLC. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. Motley Fool newsletter services have recommended buying shares of Enterprise Products Partners. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Got an opinion on the margins at Encore Energy Partners? Let us know in the comments below.Īdd Encore Energy Partners to My Watchlist.Īdd Enterprise Products Partners to My Watchlist.Īt the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. To stay ahead, learn more about how I use analysis like this to help me uncover the best returns in the stock market. If you take the time to read past the headlines and crack a filing now and then, you're probably ahead of 95% of the market's individual investors. With recent TTM operating margins below historical averages, Encore Energy Partners has some work to do. TTM net margin is -3.6%, 3,050 basis points worse than the five-year average. TTM operating margin is 4.7%, 2,700 basis points worse than the five-year average. TTM gross margin is 58.6%, 960 basis points worse than the five-year average. Net margin peaked at 77% and averaged 26.9%. Operating margin peaked at 79.6% and averaged 31.7%. Over the past five years, gross margin peaked at 73.9% and averaged 68.2%. Source: Capital IQ, a division of Standard & Poor's. You can't always reach a hard conclusion about your company's health, but you can better understand what to expect, and what to watch. That's why I like to look at five fiscal years' worth of margins, along with the results for the trailing 12 months (TTM), the last fiscal year, and last fiscal quarter (LFQ). Of course, over the short term, the kind of economic shocks we recently experienced can drastically affect a company's profitability. If it can't make up for this problem by cutting costs - and most companies can't - then both the business and its shares face a decidedly bleak outlook. ![]() Conversely, a company with gross margins that inch downward over time is often losing out to competition, and possibly engaging in a race to the bottom on prices. ![]() If it sells more units while keeping costs in check, its profitability increases. A company with rising gross and operating margins often fuels its growth by increasing demand for its products. Unfortunately, that table doesn't tell us much about where Encore Energy Partners has been, or where it's going. ![]()
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