The firm said it lowered its rating on the company, which designs, engineers, manufacturers, repairs, and distributes aerostructure, and aircraft components, based on its concern Triumph will not be able to meet its targeted EPS growth.
RBC cut its price target on the stock to $67 from $73.
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- The debt-to-equity ratio is somewhat low, currently at 0.68, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.85 is somewhat weak and could be cause for future problems.
- Net operating cash flow has increased to $101.79 million or 12.73% when compared to the same quarter last year. Despite an increase in cash flow, TRIUMPH GROUP INC's cash flow growth rate is still lower than the industry average growth rate of 43.95%.
- TRIUMPH GROUP INC's earnings per share declined by 35.5% 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, TRIUMPH GROUP INC reported lower earnings of $3.91 versus $5.66 in the prior year. This year, the market expects an improvement in earnings ($5.84 versus $3.91).
- TGI, with its decline in revenue, slightly underperformed the industry average of 3.1%. Since the same quarter one year prior, revenues slightly dropped by 5.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: TGI Ratings Report