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 revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
Highlights from the ratings report include:
- Net operating cash flow has significantly decreased to -$6.48 million or 103.69% 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. When compared to other companies in the Beverages industry and the overall market, COCA-COLA HELLENIC BOTTLING's return on equity is below that of both the industry average and the S&P 500.
- CCH's debt-to-equity ratio of 0.83 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further.
- CCH's revenue growth trails the industry average of 18.2%. Since the same quarter one year prior, revenues slightly increased by 6.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
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 14.9, below the average food & beverage industry P/E ratio of 15.5 and below the S&P 500 P/E ratio of 17.7. Coca-Cola Hellenic has a market cap of $8.8 billion and is part of the
industry. Shares are down 2.6% year to date as of the close of trading on Wednesday.
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