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NEW YORK (TheStreet) -- Clear Channel Outdoor (CCO) - Get Report has been downgraded by TheStreet Ratings from Hold to Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate CLEAR CHANNEL OUTDOOR HLDGS (CCO) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Media industry. The net income has significantly decreased by 267.4% when compared to the same quarter one year ago, falling from $4.22 million to -$7.06 million.
- Net operating cash flow has decreased to $108.33 million or 26.43% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- The share price of CLEAR CHANNEL OUTDOOR HLDGS has not done very well: it is down 23.31% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- CLEAR CHANNEL OUTDOOR HLDGS has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, CLEAR CHANNEL OUTDOOR HLDGS continued to lose money by earning -$0.15 versus -$0.53 in the prior year. This year, the market expects an improvement in earnings (-$0.07 versus -$0.15).
- 46.19% is the gross profit margin for CLEAR CHANNEL OUTDOOR HLDGS which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -0.95% is in-line with the industry average.
- You can view the full analysis from the report here: CCO Ratings Report