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 reiterated by TheStreet Ratings as a hold with a ratings score of C . 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 deteriorating net income, poor profit margins and weak operating cash flow.
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Highlights from the ratings report include:
- The revenue fell significantly faster than the industry average of 23.3%. Since the same quarter one year prior, revenues slightly dropped by 7.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- Net operating cash flow has significantly decreased to $637.00 million or 73.16% 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 company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Computers & Peripherals industry average. The net income has decreased by 17.8% when compared to the same quarter one year ago, dropping from $890.00 million to $732.00 million.
Dell Inc. provides integrated technology solutions in the information technology (IT) industry worldwide. Dell has a market cap of $17 billion and is part of the technology sector and computer hardware industry. The company has a P/E ratio of 5.8, below the S&P 500 P/E ratio of 17.7. Shares are down 34.7% 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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