Skip to main content

NEW YORK (

TheStreet

)

-- Enpro Industries

(NYSE:

NPO

) 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, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • The revenue growth significantly trails the industry average of 36.3%. Since the same quarter one year prior, revenues slightly increased by 5.1%. 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.
  • Net operating cash flow has significantly increased by 313.44% to $25.40 million when compared to the same quarter last year. In addition, ENPRO INDUSTRIES INC has also vastly surpassed the industry average cash flow growth rate of 87.01%.
  • The debt-to-equity ratio is somewhat low, currently at 0.74, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.73 is somewhat weak and could be cause for future problems.
  • 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 Machinery industry. The net income has significantly decreased by 73.0% when compared to the same quarter one year ago, falling from $45.20 million to $12.20 million.
  • The share price of ENPRO INDUSTRIES INC has not done very well: it is down 5.86% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

EnPro Industries, Inc., together with its subsidiaries, engages in the design, development, manufacture, and marketing of engineered industrial products primarily in the United States and Europe. It operates in three segments: Sealing Products, Engineered Products, and Engine Products. The company has a P/E ratio of 16.9, equal to the average industrial industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Enpro has a market cap of $623.8 million and is part of the

TheStreet Recommends

industrial goods

sector and

industrial

industry. Shares are down 25.8% year to date as of the close of trading on Monday.

You can view the full

Enpro Ratings Report

or get investment ideas from our

investment research center

.

null