NEW YORK (
-- Coca-Cola Hellenic Bottling Company
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- 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 Beverages industry. The net income has significantly decreased by 104.1% when compared to the same quarter one year ago, falling from $33.79 million to -$1.38 million.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- COCA-COLA HELLENIC BOTTLING has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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. We anticipate these figures will begin to experience more growth 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 ($1.94 versus $1.54).
- 36.80% is the gross profit margin for COCA-COLA HELLENIC BOTTLING which we consider to be strong. Regardless of CCH's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CCH's net profit margin of -0.10% significantly underperformed when compared to the industry average.
- CCH's revenue growth trails the industry average of 16.6%. 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 16.1, below the average food & beverage industry P/E ratio of 16.8 and below the S&P 500 P/E ratio of 17.7. Coca-Cola Hellenic has a market cap of $9.6 billion and is part of the
industry. Shares are up 0.6% year to date as of the close of trading on Wednesday.
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