Portugal Telecom (NYSE: PT) shares currently have a dividend yield of 13.60%. Portugal Telecom, SGPS S.A., together with its subsidiaries, provides telecommunications services in Portugal, Brazil, sub-Saharan Africa, and Asia. The company has a P/E ratio of 11.15. The average volume for Portugal Telecom has been 296,000 shares per day over the past 30 days. Portugal Telecom has a market cap of $4.5 billion and is part of the telecommunications industry. Shares are up 5.2% year to date as of the close of trading on Wednesday. TheStreet Ratings rates Portugal Telecom as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and increase in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and generally higher debt management risk. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 2.2%. Since the same quarter one year prior, revenues rose by 12.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Diversified Telecommunication Services industry and the overall market on the basis of return on equity, PORTUGAL TELECOM SGPS SA has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- Net operating cash flow has declined marginally to $582.08 million or 1.20% 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 Portugal Telecom Ratings Report.
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