Devon Energy Corporation
Devon Energy Corporation (NYSE: DVN) is North America's major independent oil and gas exploration and production company. DVN's assets are scattered across onshore North America, with exposure to the Delaware, STACK, Eagle Ford, Powder River Basin, and Bakken play among them.
Key Highlights:
- The company reported a significant increase in total revenues to USD 12.21 billion in FY21 (ended December 31, 2021) compared to USD 4.83 billion in FY20.
- DVN reported an increase in net earnings to USD 2.83 billion in FY21 from a loss of USD 2.67 billion in FY20.
- The company's debt/equity ratio improved to 0.73x at the end of FY21 from 1.58x at the end of FY20, although it remains higher than the industry norm of 0.61x.
- The company's gross margins increased significantly from 35.0% in FY20 to 47.8% in FY21, but it remains below the industry median of 56.2%.
- The stock is currently trading far above its key short-term (50-day) and long-term (200-day) DMA support levels, with the RSI Index at 67.35, indicating an overbought zone.
- It is leaning towards the higher band of the 52-week range of USD 19.39 to USD 60.74.
- The stock price has surged 44.61% and 109.87% in the past three and six months, respectively.
Conclusion: Considering the company's strong topline and bottom-line performance, below industry margins, macroeconomic headwinds, and overbought technical indicators, we will wait for the energy prices to come down and recommend a "Watch" rating on the stock at the current price of USD 59.39, up 0.92% as of March 04, 2022., at 2:30 PM ET.
Three-Year Technical Price Chart (as of March 04, 2022, at 2:30 PM ET). Source: REFINITIV, Analysis by Kalkine Group
*The reference data in this report has been partly sourced from REFINITIV.
LendingClub Corporation
LendingClub Corporation (NYSE: LC) operates an online lending marketplace platform that links borrowers and investors for providing a loan facility. Interested investors can apply for personal, education, and patient finance loans and small business and auto loans through the company's platform. The platform's role in accepting and deciding applications on behalf of bank partners to enable loan originations produces most of its revenues.
Key Highlights:
- The company reported total net revenues of USD 818.63 million in FY21 (ended December 31, 2021) compared to USD 318.08 million in FY20, due to a significant increase in marketplace revenues.
- LC reported an increase in consolidated net income to USD 18.58 million in FY21 from a loss of USD 187.54 million in FY20.
- Due to the origination of unsecured personal loans retained as held for investment (HFI) at amortized cost and the impact of applying Current Expected Credit Losses (CECL) to the HFI portfolio, the company's provision for credit losses grew to USD 138.80 million in FY21 from USD 3.38 million in FY20.
- The company's EBITDA margins improved from -13.4% in FY20 to 9.7% in FY21, but it remains below the industry median of 35.7%.
- Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, indicating a bearish indicator.
- The stock is leaning towards the lower band of its 52-week range of USD 9.50 to USD 49.21.
- LC's stock price has fallen 46.03% and 49.16% in the past three and six months, respectively.
Conclusion: Considering the topline growth, industry lagging margins, increase in provision for credit losses, and other technical indicators, we recommend a "Watch" rating on the stock at the current price of USD 15.78, down 7.67%, as of March 04, 2022, 2:33 PM ET.
Three-Year Technical Price Chart (as of March 04, 2022, at 2:33 PM ET). Source: REFINITIV, Analysis by Kalkine Group
*The reference data in this report has been partly sourced from REFINITIV.
Harsco Corporation
Harsco Corporation (NYSE: HSC) supplies steel and nonferrous metal producers in more than 30 countries, including the United States, with industrial mill services. It also provides international gas-control and gas-containment products, scaffolding services for industrial maintenance and construction, and railway maintenance-of-way equipment and services.
Key Highlights:
- The company's reported a 20.49% increase in total revenues to USD 1.85 billion in FY21 (ended December 31, 2021) from USD 1.53 billion in FY20.
- HSC reported an increase in net income to USD 2.73 million in FY21 from a loss of USD 21.98 million in FY20.
- The company's operating margins improved from -0.3% in FY20 to 4.5% in FY21, but it remains below the industry median of 8.6%.
- The company's long-term debt to total capital ratio was 62.3% in FY21, compared to a 34.3% industry median, indicating a highly leveraged balance sheet.
- Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, indicating a bearish indicator.
- Stock is leaning towards the lower-band of the 52-week range of USD 10.42 to USD 23.73.
- HSC's stock price has fallen 30.52% and 45.06% in the past six and nine months, respectively.
Conclusion: Considering the improvement in topline and bottom-line performance, leveraged balance sheet, industry lagging margins, and other technical indicators, we recommend a "Watch" rating on the stock at the current price of USD 12.68, down 2.16% as of March 04, 2022, 2:38 PM ET.
Three-Year Technical Price Chart (as of March 04, 2022, at 2:38 PM ET). Source: REFINITIV, Analysis by Kalkine Group
*The reference data in this report has been partly sourced from REFINITIV.
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