NEW YORK (TheStreet) -- Nielsen Holdings (NYSE:NLSN) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.
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- NIELSEN HOLDINGS NV has improved earnings per share by 47.4% in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($1.78 versus $0.18).
- The gross profit margin for NIELSEN HOLDINGS NV is rather high; currently it is at 59.30%. It has increased from the same quarter the previous year.
- Despite the weak revenue results, NLSN has outperformed against the industry average of 15.8%. Since the same quarter one year prior, revenues slightly dropped by 0.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- NLSN has underperformed the S&P 500 Index, declining 9.39% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- Net operating cash flow has declined marginally to $116.00 million or 4.91% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
-- Written by a member of TheStreet Ratings Staff
TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
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