Analog Devices, AES: Ratings Changes - TheStreet

Analog Devices, AES: Ratings Changes

Analog Devices, AES, CB Richard Ellis, Fidelity National Information Services and Spectra Energy had their ratings changed at TheStreet.com.
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BOSTON (TheStreet) -- As quarterly earnings numbers roll in, our quantitative equity model, which rates stocks on fundamentals and performance, is separating the wheat from the chaff. Here are five significant rating changes.

5.

The model downgraded chipmaker

Analog Devices

(ADI) - Get Report

to "hold."

The numbers

: Fourth-quarter profit fell 27% to $106 million, or 36 cents a share, as revenue decreased 13% to $572 million. The company's operating margin narrowed from 25% to 22%. Analog Devices holds $1.8 billion of cash and $380 million of debt. The model awards the company a financial-strength score of 7.9 out of 10.

The stock

: Analog Devices advanced 22% during the past year, less than major U.S. indices. The stock trades at a price-to-earnings ratio of 32, a discount to semiconductor peers. The shares offer a 3% dividend yield.

4.

The model downgraded utility

AES

(AES) - Get Report

to "sell."

The numbers

: Third-quarter profit increased 28% to $185 million, or 28 cents a share, as revenue decreased 11% to $3.8 billion. The company's operating margin improved from 20% to 24%. AES possesses adequate liquidity, evident in its quick ratio of 1. Its 4.3 debt-to-equity ratio indicates excessive leverage.

The stock

: AES soared 42% during the past year, outpacing major U.S. indices. The stock trades at a price-to-earnings ratio of 12, a discount to energy peers. AES doesn't pay dividends.

3.

The model upgraded commercial real-estate firm

CB Richard Ellis

(CBG)

to "hold."

The numbers

: CB Richard Ellis swung to a fourth-quarter profit of $64 million, or 21 cents a share, from a loss of $1.1 billion, or $4.70 a share, in the year-earlier period. Revenue inched up 1% to $1.3 billion. The company's operating margin widened from 10% to 12%. Its 4.3 debt-to-equity ratio reflects a heavy debt burden.

The stock

: CB Richard Ellis soared 216% during the past year, easily outperforming major U.S. indices. The stock trades at a price-to-projected-earnings ratio of 13, a discount to real-estate peers. CB Richard Ellis doesn't pay dividends.

2.

The model downgraded data processor

Fidelity National Information Services

(FIS) - Get Report

to "sell."

The numbers

: Fidelity National swung to a fourth-quarter loss of $54 million, or 14 cents a share, from a profit of $29 million, or 26 cents a share, in the year-earlier period. Revenue increased 51% to $1.3 billion. The company's operating margin ascended from 15% to 17%. Its 0.4 debt-to-equity ratio indicates fiscal prudence.

The stock

: Fidelity National Information Services increased 35% during the past year, more than the

Dow Jones Industrial Average

and

S&P 500 Index

. The stock trades at a price-to-earnings ratio of 35, a premium to IT-service peers. The shares offer a 0.9% dividend yield.

1.

The model upgraded natural-gas storage and transportation company

Spectra Energy

(SE) - Get Report

to "buy."

The numbers

: Fourth-quarter net income rose 28% to $219 million, and earnings per share increased 22% to 33 cents, hurt by a higher share count. Revenue ascended 2.9% to $1.3 billion. The company's operating margin extended from 28% to 29%. Its 1.1 debt-to-equity ratio demonstrates sizable leverage.

The stock

: Spectra Energy climbed 40% during the past year, beating major U.S. indices. The stock trades at a price-to-earnings ratio of 16, a discount to oil and gas peers. The shares offer a 4.8% dividend yield.

-- Reported by Jake Lynch in Boston.