NEW YORK (
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and good cash flow from operations. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
Highlights from the ratings report include:
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Media industry and the overall market, CKX INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Despite currently having a low debt-to-equity ratio of 0.36, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.91 is weak.
- CKX INC reported significant earnings per share improvement 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, CKX INC swung to a loss, reporting -$0.17 versus $0.25 in the prior year. This year, the market expects an improvement in earnings ($0.34 versus -$0.17).
- Powered by its strong earnings growth of 260.00% and other important driving factors, this stock has surged by 35.39% over the past year, outperforming the rise in the S&P 500 Index during the same period. Although CKXE had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 267.0% when compared to the same quarter one year prior, rising from -$4.58 million to $7.65 million.
CKX, Inc., together with its subsidiaries, engages in the ownership, development, and commercial utilization of entertainment content worldwide. CKX has a market cap of $507.5 million and is part of the
industry. Shares are up 35.7% year to date as of the close of trading on Wednesday.
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