NEW YORK (
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its revenue growth 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 poor profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 6.2%. Since the same quarter one year prior, revenues slightly increased by 4.9%. 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.
- PSS's debt-to-equity ratio of 0.81 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. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.87 is weak.
- COLLECTIVE BRANDS INC 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, COLLECTIVE BRANDS INC increased its bottom line by earning $1.74 versus $1.27 in the prior year. For the next year, the market is expecting a contraction of 50.6% in earnings ($0.86 versus $1.74).
- The gross profit margin for COLLECTIVE BRANDS INC is currently lower than what is desirable, coming in at 34.60%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -4.00% is significantly below that of the industry average.
- Net operating cash flow has decreased to $18.50 million or 23.86% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
Collective Brands, Inc. primarily engages in the wholesale and retail of footwear and related accessories worldwide. The company has a P/E ratio of 32.5, below the average retail industry P/E ratio of 33.9 and above the S&P 500 P/E ratio of 17.7. Collective has a market cap of $904.3 million and is part of the
industry. Shares are down 29.4% year to date as of the close of trading on Thursday.
You can view the full
or get investment ideas from our