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 largely solid financial position with reasonable debt levels by most measures, 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, disappointing return on equity and deteriorating net income.
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Highlights from the ratings report include:
- GG's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, GG has a quick ratio of 1.96, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly increased by 67.87% to $554.00 million when compared to the same quarter last year. In addition, GOLDCORP INC has also vastly surpassed the industry average cash flow growth rate of -15.99%.
- The gross profit margin for GOLDCORP INC is rather high; currently it is at 58.20%. Regardless of GG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GG's net profit margin of 24.10% compares favorably to the industry average.
- The share price of GOLDCORP INC has not done very well: it is down 21.79% 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.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Metals & Mining industry and the overall market, GOLDCORP INC's return on equity is below that of both the industry average and the S&P 500.
Goldcorp Inc. engages in the acquisition, development, exploration, and operation of precious metal properties. It primarily explores gold, silver, copper, lead, and zinc. The company has a P/E ratio of 24.9, above the average metals & mining industry P/E ratio of 23.6 and above the S&P 500 P/E ratio of 17.7. Goldcorp has a market cap of $29.9 billion and is part of the
industry. Shares are down 8.7% year to date as of the close of trading on Friday.
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--Written by a member of TheStreet Ratings Staff.