Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model
NEW YORK (
) 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, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
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Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 2.5%. Since the same quarter one year prior, revenues rose by 32.7%. 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.
- 42.20% is the gross profit margin for COCA-COLA HELLENIC BOTTLING 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 -2.29% is in-line with the industry average.
- CCH's debt-to-equity ratio of 0.72 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.
- 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.
- Net operating cash flow has decreased to $125.53 million or 11.07% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, COCA-COLA HELLENIC BOTTLING has marginally lower results.
Coca-Cola Hellenic Bottling Company S.A. produces, sells, and distributes non-alcoholic ready-to-drink beverages primarily in Europe. It principally operates as a bottler of The Coca-Cola Company's products. The company has a P/E ratio of 26.6, above the S&P 500 P/E ratio of 17.7. Coca-Cola Hellenic Bottling Company S.A has a market cap of $9.46 billion and is part of the consumer goods sector and food & beverage industry. Shares are up 9.5% year to date as of the close of trading on Friday.
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-- Written by a member of TheStreet Ratings Staff
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