NEW YORK (
-- ICF International
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
Highlights from the ratings report include:
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, ICFI has underperformed the S&P 500 Index, declining 18.99% 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.
- ICF INTERNATIONAL INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. However, the consensus estimates suggest that there will be an upward trend in the coming year. During the past fiscal year, ICF INTERNATIONAL INC reported lower earnings of $1.39 versus $1.40 in the prior year. This year, the market expects an improvement in earnings ($1.68 versus $1.39).
- 38.10% is the gross profit margin for ICF INTERNATIONAL INC which we consider to be strong. Regardless of ICFI's high profit margin, it has managed to decrease from the same period last year.
- Despite its growing revenue, the company underperformed as compared with the industry average of 11.4%. Since the same quarter one year prior, revenues rose by 10.8%. 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.
- The net income growth from the same quarter one year ago has significantly exceeded that of the Professional Services industry average, but is less than that of the S&P 500. The net income increased by 15.6% when compared to the same quarter one year prior, going from $6.19 million to $7.16 million.
ICF International, Inc. provides management, technology, and policy consulting and implementation services to government, commercial, and international clients worldwide. The company has a P/E ratio of 14.8, equal to the average diversified services industry P/E ratio and below the S&P 500 P/E ratio of 16.2. ICF International has a market cap of $399.7 million and is part of the
industry. Shares are down 20.2% year to date as of the close of trading on Wednesday.
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