NEW YORK (TheStreet) -- Barclays trimmed its price target on Corporate Executive Board (CEB - Get Report) to $80 and set an "overweight" rating. The firm said the company was unconvincing on stronger capital allocation plans.
The stock closed at $67.91 on Wednesday.
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- Despite its growing revenue, the company underperformed as compared with the industry average of 11.9%. Since the same quarter one year prior, revenues slightly increased by 8.2%. 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.
- Net operating cash flow has slightly increased to $114.52 million or 2.84% when compared to the same quarter last year. Despite an increase in cash flow, CORPORATE EXECUTIVE BRD CO's average is still marginally south of the industry average growth rate of 10.64%.
- The gross profit margin for CORPORATE EXECUTIVE BRD CO is rather high; currently it is at 62.90%. Regardless of CEB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.63% trails the industry average.
- CORPORATE EXECUTIVE BRD CO's earnings per share declined by 33.3% in the most recent quarter compared to 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, CORPORATE EXECUTIVE BRD CO reported lower earnings of $0.94 versus $1.10 in the prior year. This year, the market expects an improvement in earnings ($3.25 versus $0.94).
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: CEB Ratings Report