What To Hold: Top 3 Hold-Rated Dividend Stocks: PMT, WIN, KMI
Windstream Holdings (NASDAQ: WIN) shares currently have a dividend yield of 12.00%. Windstream Holdings, Inc. provides communications and technology solutions in the United States. The company offers managed services and cloud computing services to businesses, as well as broadband, voice, and video services to consumers primarily in rural markets. The company has a P/E ratio of 39.67. The average volume for Windstream Holdings has been 5,660,300 shares per day over the past 30 days. Windstream Holdings has a market cap of $5.0 billion and is part of the telecommunications industry. Shares are up 0.6% year to date as of the close of trading on Wednesday. TheStreet Ratings rates Windstream Holdings as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and relatively poor performance when compared with the S&P 500 during the past year. Highlights from the ratings report include:
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Diversified Telecommunication Services industry and the overall market, WINDSTREAM HOLDINGS INC's return on equity exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has increased to $448.10 million or 10.15% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -8.79%.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 3.1%. Since the same quarter one year prior, revenues slightly dropped by 2.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Diversified Telecommunication Services industry. The net income has significantly decreased by 34.3% when compared to the same quarter one year ago, falling from $46.60 million to $30.60 million.
- The debt-to-equity ratio is very high at 10.35 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, WIN has a quick ratio of 0.50, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- You can view the full Windstream Holdings Ratings Report.
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