EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

Reprint Email

Siliconware Precision Industries Co Ltd. Stock Downgraded (SPIL)

By TheStreet Wire 05/28/12 - 05:09 AM EDT

Find out if (SPIL) is in Cramer's Portfolio.

NEW YORK (TheStreet) -- Siliconware Precision Industries (Nasdaq:SPIL) 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, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from the ratings report include:

SPIL's revenue growth trails the industry average of 19.4%. Since the same quarter one year prior, revenues slightly increased by 4.1%. 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.
SPIL's debt-to-equity ratio is very low at 0.19 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SPIL has a quick ratio of 1.86, which demonstrates the ability of the company to cover short-term liquidity needs.
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 Semiconductors & Semiconductor Equipment industry and the overall market, SILICONWARE PRECISION INDS's return on equity is significantly below that of the industry average and is below that of the S&P 500.
The gross profit margin for SILICONWARE PRECISION INDS is currently lower than what is desirable, coming in at 30.30%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 5.90% significantly trails the industry average.

Siliconware Precision Industries Co., Ltd. provides semiconductor packaging and testing services worldwide. The company has a P/E ratio of 19.6, below the average electronics industry P/E ratio of 20.9 and above the S&P 500 P/E ratio of 17.7. Siliconware Precision has a market cap of $3.27 billion and is part of the technology sector and electronics industry. Shares are up 16.7% year to date as of the close of trading on Friday.

You can view the full Siliconware Precision Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet Ratings Staff

For more information on Siliconware Precision Industries Co Ltd. click any of the following:

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:

$2.5+ million portfolio
Large-cap and dividend focus
Intraday trade alerts from Cramer
Weekly roundups

TheStreet Quant Ratings

TRY IT FREE

New! $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:

Buy, hold, or sell recommendations for over 4,300 stocks
Unlimited research reports on your favorite stocks
A custom stock screener
Upgrade/downgrade alerts

Stocks Under $10

TRY IT FREE

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:

Model portfolio
Stocks trading below $10
Intraday trade alerts
Weekly roundups

Dividend Stock Advisor

TRY IT FREE

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:

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 Pro

TRY IT FREE

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:

Real Money + Doug Kass + 15 more Wall Street Pros
Intraday commentary & news
Ultra-actionable trading ideas

Options Profits

TRY IT FREE

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.