3 Buy-Rated Dividend Stocks
Lexmark International (NYSE: LXK) shares currently have a dividend yield of 4.60%. Lexmark International, Inc. develops, manufactures, and supplies printing and imaging solutions for offices. It offers laser printers, inkjet printers, and multifunction devices, as well as cartridges and other supplies, services, and solutions. The company has a P/E ratio of 17.24. Currently there are no analysts that rate Lexmark International a buy, 5 analysts rate it a sell, and 3 rate it a hold. The average volume for Lexmark International has been 1,120,400 shares per day over the past 30 days. Lexmark International has a market cap of $1.7 billion and is part of the computer hardware industry. Shares are up 13.8% year to date as of the close of trading on Wednesday. TheStreet Ratings rates Lexmark International as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- LEXMARK INTL INC 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, LEXMARK INTL INC reported lower earnings of $1.49 versus $4.11 in the prior year. This year, the market expects an improvement in earnings ($3.84 versus $1.49).
- LXK, with its decline in revenue, underperformed when compared the industry average of 18.0%. Since the same quarter one year prior, revenues slightly dropped by 8.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Despite currently having a low debt-to-equity ratio of 0.51, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.99 is weak.
- 43.90% is the gross profit margin for LEXMARK INTL INC which we consider to be strong. Regardless of LXK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LXK's net profit margin of 0.65% is significantly lower than the industry average.
- Net operating cash flow has decreased to $138.40 million or 15.60% 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.
- You can view the full Lexmark International Ratings Report.
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