NEW YORK ( TheStreet Ratings) -- Every trading day TheStreet Ratings' stock model reviews the investment ratings on around 4,700 U.S. traded stocks for potential upgrades or downgrades based on the latest available financial results and trading activity.
TheStreet Ratings released rating changes on 70 U.S. common stocks for week ending January 20, 2012. 59 stocks were upgraded and 11 stocks were downgraded by our stock model.
Rating Change #10
Nutraceutical International Corporation (NUTR) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.9%. Since the same quarter one year prior, revenues slightly increased by 7.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has slightly increased to $4.99 million or 9.78% when compared to the same quarter last year. Despite an increase in cash flow of 9.78%, NUTRACEUTICAL INTL CORP is still growing at a significantly lower rate than the industry average of 86.42%.
- 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 Personal Products industry. The net income has decreased by 7.6% when compared to the same quarter one year ago, dropping from $3.54 million to $3.27 million.
- 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 Personal Products industry and the overall market, NUTRACEUTICAL INTL CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.