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 buy with a ratings score of B- . The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
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Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 0.5%. Since the same quarter one year prior, revenues rose by 29.8%. 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 increased to $1,735.00 million or 42.21% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 5.98%.
- The debt-to-equity ratio is somewhat low, currently at 0.87, 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 0.72 is somewhat weak and could be cause for future problems.
- The share price of EXELON CORP has not done very well: it is down 11.13% 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, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
Exelon Corporation, a utility services holding company, engages in the generation of electricity in the United States. It generates electricity from nuclear, fossil, hydro, and renewable energy sources. The company has a P/E ratio of 15.4, below the average utilities industry P/E ratio of 15.8 and below the S&P 500 P/E ratio of 17.7. Exelon has a market cap of $32.56 billion and is part of the
industry. Shares are down 13.6% year to date as of the close of trading on Wednesday.
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--Written by a member of TheStreet Ratings Staff.