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 revenue growth, impressive record of earnings per share growth and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 10.3%. Since the same quarter one year prior, revenues rose by 16.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- ICF INTERNATIONAL INC has improved earnings per share by 15.4% 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. This trend suggests that the performance of the business is improving. During the past fiscal year, ICF INTERNATIONAL INC increased its bottom line by earning $1.75 versus $1.39 in the prior year. This year, the market expects an improvement in earnings ($2.08 versus $1.75).
- Despite currently having a low debt-to-equity ratio of 0.38, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that ICFI's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.70 is high and demonstrates strong liquidity.
- ICFI has underperformed the S&P 500 Index, declining 6.13% 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.
- Net operating cash flow has decreased to $11.00 million or 20.41% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
ICF International Inc. provides management, technology, and policy professional services to government, commercial, and international clients. The company has a P/E ratio of 12.6, equal to the average diversified services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. ICF International has a market cap of $453.8 million and is part of the
industry. Shares are down 8% year to date as of the close of trading on Thursday.
You can view the full
or get investment ideas from our
-- Written by a member of TheStreet Ratings Staff