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 attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and poor profit margins.
Highlights from the ratings report include:
- The revenue fell significantly faster than the industry average of 5.2%. Since the same quarter one year prior, revenues fell by 29.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- 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 Food & Staples Retailing industry. The net income has significantly decreased by 31.3% when compared to the same quarter one year ago, falling from $222.38 million to $152.77 million.
- 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 Food & Staples Retailing industry and the overall market, DELHAIZE GROUP - ETS DLHZ FR's return on equity is below that of both the industry average and the S&P 500.
Etablissements Delhaize Freres et Cie Le Lion (Groupe Delhaize) S.A., together with its subsidiaries, engages in the operations of food supermarkets in North America, Europe, and southeast Asia. The company has a P/E ratio of 6.8, below the average retail industry P/E ratio of 7.2 and below the S&P 500 P/E ratio of 17.7. Delhaize Group has a market cap of $5.53 billion and is part of the
industry. Shares are down 25.7% year to date as of the close of trading on Tuesday.
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