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Delphi Automotive PLC Stock Hold Recommendation Reiterated (DLPH)

Editor's Note: 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.

NEW YORK ( TheStreet) -- Delphi Automotive (NYSE: DLPH) has been reiterated by TheStreet Ratings as a hold with a ratings score of C- . The company's strengths can be seen in multiple areas, such as its notable return on equity and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and generally higher debt management risk.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass

Highlights from the ratings report include:

  • Compared to other companies in the Auto Components industry and the overall market, DELPHI AUTOMOTIVE PLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Compared to its closing price of one year ago, DLPH's share price has jumped by 36.09%, exceeding the performance of the broader market during that same time frame. Although DLPH had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
  • DELPHI AUTOMOTIVE PLC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, DELPHI AUTOMOTIVE PLC increased its bottom line by earning $3.32 versus $1.69 in the prior year. This year, the market expects an improvement in earnings ($4.22 versus $3.32).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Auto Components industry. The net income has significantly decreased by 53.1% when compared to the same quarter one year ago, falling from $290.00 million to $136.00 million.
  • Net operating cash flow has decreased to $310.00 million or 33.76% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

Delphi Automotive PLC, together with its subsidiaries, manufactures vehicle components; and provides electrical and electronic, powertrain, safety, and thermal technology solutions for the automotive and commercial vehicle markets worldwide. Delphi Automotive has a market cap of $13.64 billion and is part of the consumer goods sector and automotive industry. The company has a P/E ratio of 13, below the S&P 500 P/E ratio of 17.7. Shares are up 13.2% year to date as of the close of trading on Friday.

You can view the full Delphi Automotive Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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