NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. 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, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 38.3%. Since the same quarter one year prior, revenues slightly increased by 8.7%. 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.
- DUF has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.27, which clearly demonstrates the ability to cover short-term cash needs.
- 41.60% is the gross profit margin for DUFF & PHELPS CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.30% trails the industry average.
- Net operating cash flow has increased to $27.14 million or 27.39% when compared to the same quarter last year. Despite an increase in cash flow of 27.39%, DUFF & PHELPS CORP is still growing at a significantly lower rate than the industry average of 109.80%.
- DUFF & PHELPS CORP's earnings per share declined by 6.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DUFF & PHELPS CORP increased its bottom line by earning $0.60 versus $0.52 in the prior year. This year, the market expects an improvement in earnings ($0.79 versus $0.60).
Duff & Phelps Corporation provides independent financial advisory and investment banking services worldwide. The company operates in three segments: Financial Advisory, Alternative Asset Advisory, and Investment Banking. The company has a P/E ratio of 24.9, equal to the average financial services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Duff & Phelps has a market cap of $453.5 million and is part of the
industry. Shares are down 12% year to date as of the close of trading on Wednesday.
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