NEW YORK (
) -- 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 40 U.S. common stocks for week ending July 13, 2012. 24 stocks were upgraded and 16 stocks were downgraded by our stock model.
Rating Change #10
has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- Although SNDK's debt-to-equity ratio of 0.23 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 3.51, which clearly demonstrates the ability to cover short-term cash needs.
- 38.40% is the gross profit margin for SANDISK CORP which we consider to be strong. Regardless of SNDK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SNDK's net profit margin of 9.50% is significantly lower than the same period one year prior.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Computers & Peripherals industry and the overall market, SANDISK CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- Net operating cash flow has significantly decreased to $67.17 million or 83.14% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
Sandisk Corporation designs, develops, and manufactures NAND flash memory storage solutions that are used in various consumer electronics products. The company has a P/E ratio of 9.7, equal to the average computer hardware industry P/E ratio and below the S&P 500 P/E ratio of 17.7. SanDisk has a market cap of $8.44 billion and is part of the
industry. Shares are down 29.6% year to date as of the close of trading on Thursday.
You can view the full
SanDisk Ratings Report
or get investment ideas from our
investment research center