NYSE Euronext Inc. Stock Buy Recommendation Reiterated (NYX)
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- Compared to its closing price of one year ago, NYX's share price has jumped by 31.29%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that NYX's debt-to-equity ratio is low, the quick ratio, which is currently 0.52, displays a potential problem in covering short-term cash needs.
- NYSE EURONEXT 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. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, NYSE EURONEXT reported lower earnings of $1.39 versus $2.37 in the prior year. This year, the market expects an improvement in earnings ($2.32 versus $1.39).
- NYX, with its decline in revenue, underperformed when compared the industry average of 7.0%. Since the same quarter one year prior, revenues fell by 13.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Net operating cash flow has decreased to $278.00 million or 14.46% when compared to the same quarter last year. Despite a decrease in cash flow of 14.46%, NYSE EURONEXT is still significantly exceeding the industry average of -111.82%.
--Written by a member of TheStreet Ratings Staff. Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
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