NEW YORK (
-- Coca-Cola Hellenic Bottling Company
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its increase in net income, increase in stock price during the past year and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, generally poor debt management and disappointing return on equity.
Highlights from the ratings report include:
- Net operating cash flow has significantly decreased to $81.86 million or 55.69% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- 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 Beverages industry and the overall market on the basis of return on equity, COCA-COLA HELLENIC BOTTLING has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- COCA-COLA HELLENIC BOTTLING reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. However, the consensus estimates suggest that there will be an upward trend in the coming year. During the past fiscal year, COCA-COLA HELLENIC BOTTLING reported lower earnings of $1.54 versus $1.55 in the prior year. This year, the market expects an improvement in earnings ($1.91 versus $1.54).
- After a year of stock price fluctuations, the net result is that CCH's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. 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.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Beverages industry. The net income increased by 280.5% when compared to the same quarter one year prior, rising from -$7.36 million to $13.29 million.
Coca-Cola Hellenic Bottling Company S.A. operates as a bottler and vendor of The Coca-Cola Company's products in Europe and internationally. It produces, sells, and distributes nonalcoholic ready-to-drink beverages. The company has a P/E ratio of 17.5, below the average food & beverage industry P/E ratio of 18.2 and above the S&P 500 P/E ratio of 16.4. Coca-Cola Hellenic has a market cap of $10.4 billion and is part of the
industry. Shares are up 10.7% year to date as of the close of trading on Wednesday.
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