McGraw Hill Financial (MHFI) Stock Started With 'Buy' Rating at Cantor Fitzgerald
NEW YORK (TheStreet) -- Cantor Fitzgerald initiated coverage on McGraw Hill Financial (MHFI) stock with a "buy" rating on Tuesday. The firm set a price target of $111 on the stock.
The New York City-based financial research company has an advantageous market position, margin expansion opportunities and steady growth, Cantor Fitzgerald said.
McGraw Hill is a leading player in the ratings business, with 40% of the market share, the firm added.
Cantor Fitzgerald analysts projected McGraw Hill's 2015 earnings at $4.50 per share on revenue of $5.37 billion.
Shares of McGraw Hill were down by 0.21% to $96.07 in early-morning trading on Tuesday.
Separately, TheStreet Ratings team rates MCGRAW HILL FINANCIAL as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
We rate MCGRAW HILL FINANCIAL (MHFI) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and disappointing return on equity.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- MHFI's revenue growth has slightly outpaced the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 4.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- MCGRAW HILL FINANCIAL has improved earnings per share by 35.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MCGRAW HILL FINANCIAL swung to a loss, reporting -$1.12 versus $2.80 in the prior year. This year, the market expects an improvement in earnings ($4.49 versus -$1.12).
- The debt-to-equity ratio is very high at 5.30 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, MHFI maintains a poor quick ratio of 0.97, which illustrates the inability to avoid short-term cash problems.
- 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 Diversified Financial Services industry and the overall market, MCGRAW HILL FINANCIAL's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: MHFI
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.