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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet, Inc., or any of its contributors.  TheStreet Ratings quantitative algorithm evaluates over 4,300 stocks on a daily basis by 32 different data factors and assigns a unique buy, sell, or hold recommendation on each stock.  Click here to learn more.

NEW YORK (TheStreet) -- Global Eagle Entertainment (ENT) has been upgraded by TheStreet Ratings from Sell to Hold with a ratings score of C.  TheStreet Ratings Team has this to say about their recommendation:

TheStreet Ratings team rates GLOBAL EAGLE ENTERTAINMENT as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate GLOBAL EAGLE ENTERTAINMENT (ENT) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 7.4%. Since the same quarter one year prior, revenues rose by 26.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ENT's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • ENT has underperformed the S&P 500 Index, declining 24.59% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The gross profit margin for GLOBAL EAGLE ENTERTAINMENT is currently lower than what is desirable, coming in at 26.27%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, ENT's net profit margin of -24.80% significantly underperformed when compared to the industry average.
  • You can view the full analysis from the report here: ENT Ratings Report