DineEquity Inc Stock Upgraded (DIN)
NEW YORK (TheStreet) -- DineEquity (NYSE:DIN) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, notable return on equity, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated. Highlights from the ratings report include:
- DINEEQUITY INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, DINEEQUITY INC turned its bottom line around by earning $3.87 versus -$1.72 in the prior year. This year, the market expects an improvement in earnings ($4.12 versus $3.87).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 156.3% when compared to the same quarter one year prior, rising from -$50.83 million to $28.62 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, DINEEQUITY INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- 43.20% is the gross profit margin for DINEEQUITY INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 11.80% trails the industry average.
-- Written by a member of TheStreet RatingsStaff
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