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, weak operating cash flow and poor profit margins.
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Highlights from the ratings report include:
- DELL, with its decline in revenue, underperformed when compared the industry average of 18.0%. Since the same quarter one year prior, revenues fell by 10.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Net operating cash flow has decreased to $1,441.00 million or 21.55% 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 significantly underperformed when compared to that of the S&P 500 and the Computers & Peripherals industry. The net income has significantly decreased by 30.6% when compared to the same quarter one year ago, falling from $764.00 million to $530.00 million.
Dell Inc., an information technology company, provides a range of technology solutions worldwide. Dell has a market cap of $25.35 billion and is part of the technology sector and computer hardware industry. The company has a P/E ratio of 10.7, below the S&P 500 P/E ratio of 17.7. Shares are up 42.9% year to date as of the close of trading on Tuesday.
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--Written by a member of TheStreet Ratings Staff.
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