Charm Communications (NASDAQ: CHRM) shares currently have a dividend yield of 8.90%. Charm Communications Inc. operates as an integrated advertising agency in the People's Republic of China. It operates in three segments: Media Investment Management, Advertising Agency, and Branding and Identity Services. The average volume for Charm Communications has been 6,300 shares per day over the past 30 days. Charm Communications has a market cap of $214.3 million and is part of the media industry. Shares are up 38.4% year to date as of the close of trading on Friday. TheStreet Ratings rates Charm Communications as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 1.2%. Since the same quarter one year prior, revenues rose by 13.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- CHRM has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.48, which illustrates the ability to avoid short-term cash problems.
- CHARM COMMUNICATIONS 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 reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CHARM COMMUNICATIONS INC swung to a loss, reporting -$0.12 versus $1.12 in the prior year. This year, the market expects an improvement in earnings ($0.28 versus -$0.12).
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Media industry and the overall market, CHARM COMMUNICATIONS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for CHARM COMMUNICATIONS INC is currently lower than what is desirable, coming in at 25.20%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -4.58% is significantly below that of the industry average.
- You can view the full Charm Communications Ratings Report.
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