Harmony Gold Mining Co. Ltd. Stock Downgraded (HMY)
- The revenue growth came in higher than the industry average of 2.0%. Since the same quarter one year prior, revenues rose by 27.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- HMY's debt-to-equity ratio is very low at 0.04 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.25, which illustrates the ability to avoid short-term cash problems.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Metals & Mining industry and the overall market, HARMONY GOLD MINING CO LTD's return on equity is below that of both the industry average and the S&P 500.
- HMY's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 31.69%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, HMY is still more expensive than most of the other companies in its industry.
-- Written by a member of TheStreet Ratings Staff
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