TSC Ratings' Updates: Terra Industries
The following ratings changes were generated on Tuesday, March 17.
We've initiated coverage of specialty hardwood flooring retailer Lumber Liquidators (LL) at sell, driven by its feeble growth in its earnings per share.
Earnings per share improved significantly in the most recent quarter compared with the same quarter last year, but we anticipate underperformance in the coming year relative to its yearlong pattern of positive EPS growth. Lumber Liquidators' 35.2% gross profit margin is strong, having increased from the year-ago quarter. The net profit margin of 5.6% is above the industry average. Net operating cash flow improved to $11.8 million, compared with no net operating cash flow in the year-ago quarter.
Shares have risen over the past year, outperforming the S&P 500 over the same period, but we feel that the risks involved in investing this stock do not compensate for any future upside potential.We've initiated coverage on MSCI (MXB), which provides investment decision support tools, at sell, driven by premium valuation based on our review of its current price compared with such things as earnings and book value. Net income fell 29.7% compared with the year-ago quarter, from $18.2 million to $12.8 million, greatly outperforming the diversified financial services industry average. The 1.5 debt-to-equity ratio is high but is still below the industry average, suggesting that this level of debt is acceptable within the industry. The 1.2 quick ratio is sturdy. The gross profit margin of 62.9% is rather high, though it decreased from the year-ago quarter.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV