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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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Highlights from the ratings report include:
- GMCR's revenue growth trails the industry average of 42.4%. Since the same quarter one year prior, revenues rose by 15.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- GMCR's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.02, which illustrates the ability to avoid short-term cash problems.
- GREEN MTN COFFEE ROASTERS has improved earnings per share by 6.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GREEN MTN COFFEE ROASTERS increased its bottom line by earning $2.28 versus $1.30 in the prior year. This year, the market expects an improvement in earnings ($2.83 versus $2.28).
- Net operating cash flow has significantly increased by 141.05% to $337.14 million when compared to the same quarter last year. In addition, GREEN MTN COFFEE ROASTERS has also vastly surpassed the industry average cash flow growth rate of -9.70%.
- 35.40% is the gross profit margin for GREEN MTN COFFEE ROASTERS 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 8.03% trails the industry average.
Green Mountain Coffee Roasters, Inc. engages in the specialty coffee and coffeemaker businesses in the United States and Canada. Green Mountain Coffee Roasters has a market cap of $8.25 billion and is part of the consumer goods sector and food & beverage industry. The company has a P/E ratio of 23.9, above the S&P 500 P/E ratio of 17.7. Shares are up 34.5% year to date as of the close of trading on Monday.
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--Written by a member of TheStreet Ratings Staff.
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