NEW YORK (
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally poor debt management and disappointing return on equity.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 60.9% when compared to the same quarter one year prior, rising from $73.06 million to $117.54 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 13.2%. Since the same quarter one year prior, revenues slightly increased by 6.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- GRUPO TELEVISA SAB reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GRUPO TELEVISA SAB reported lower earnings of $1.05 versus $1.32 in the prior year. This year, the market expects an improvement in earnings ($1.12 versus $1.05).
- 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. Compared to other companies in the Media industry and the overall market on the basis of return on equity, GRUPO TELEVISA SAB has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- TV has underperformed the S&P 500 Index, declining 13.22% from its price level of one year ago. 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.
Grupo Televisa, S.A.B., together with its subsidiaries, operates as a media company in Mexico and internationally. It operates in seven segments: Television Broadcasting, Pay Television Networks, Programming Exports, Publishing, Sky, Cable and Telecom, and Other Businesses. The company has a P/E ratio of 21.2, above the average media industry P/E ratio of 0.9 and above the S&P 500 P/E ratio of 17.7. Grupo Televisa S.A has a market cap of $11.35 billion and is part of the
industry. Shares are down 5.2% year to date as of the close of trading on Thursday.
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-- Written by a member of TheStreet Ratings Staff