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, 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, weak operating cash flow and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- EXBD's revenue growth trails the industry average of 19.6%. Since the same quarter one year prior, revenues slightly increased by 8.8%. 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.
- Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.76 is weak.
- The gross profit margin for CORPORATE EXECUTIVE BRD CO is rather high; currently it is at 63.20%. Regardless of EXBD's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EXBD's net profit margin of 8.70% compares favorably to the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Professional Services industry. The net income has decreased by 5.8% when compared to the same quarter one year ago, dropping from $10.98 million to $10.34 million.
- Net operating cash flow has significantly decreased to -$30.69 million or 95.87% 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 Corporate Executive Board Company provides business insights, data, and tools to business executives and professionals in the United States, Europe, and internationally. The company has a P/E ratio of 26.7, above the average diversified services industry P/E ratio of 26.5 and above the S&P 500 P/E ratio of 17.7. Corporate Executive Board has a market cap of $1 billion and is part of the
industry. Shares are down 17.8% year to date as of the close of trading on Wednesday.
You can view the full
or get investment ideas from our