Seacor Holdings Inc Stock Downgraded (CKH)
NEW YORK (TheStreet) -- Seacor Holdings (NYSE:CKH) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its increase in net income, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow.
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- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Energy Equipment & Services industry average. The net income increased by 24.6% when compared to the same quarter one year prior, going from $9.03 million to $11.25 million.
- SEACOR HOLDINGS INC has improved earnings per share by 30.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SEACOR HOLDINGS INC reported lower earnings of $1.57 versus $11.50 in the prior year. This year, the market expects an improvement in earnings ($3.85 versus $1.57).
- 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. Compared to other companies in the Energy Equipment & Services industry and the overall market, SEACOR HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for SEACOR HOLDINGS INC is rather low; currently it is at 18.50%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.30% significantly trails the industry average.
-- 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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