McGraw-Hill Companies Inc. Stock Buy Recommendation Reiterated (MHP)
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- MCGRAW-HILL COMPANIES has improved earnings per share by 42.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MCGRAW-HILL COMPANIES increased its bottom line by earning $2.96 versus $2.75 in the prior year. This year, the market expects an improvement in earnings ($3.21 versus $2.96).
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Diversified Financial Services industry and the overall market, MCGRAW-HILL COMPANIES's return on equity significantly exceeds that of both the industry average and the S&P 500.
- MHP, with its decline in revenue, underperformed when compared the industry average of 7.9%. Since the same quarter one year prior, revenues fell by 19.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- Even though the current debt-to-equity ratio is 1.50, it is still below the industry average, suggesting that this level of debt is acceptable within the Diversified Financial Services industry.
- Net operating cash flow has decreased to $225.00 million or 26.56% when compared to the same quarter last year. Despite a decrease in cash flow of 26.56%, MCGRAW-HILL COMPANIES is still significantly exceeding the industry average of -99.74%.
--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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