NEW YORK (
-- ICG Group
) 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, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 22.5%. Since the same quarter one year prior, revenues slightly increased by 7.9%. 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.
- ICGE's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.79, which clearly demonstrates the ability to cover short-term cash needs.
- ICG GROUP INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, ICG GROUP INC reported lower earnings of $0.74 versus $1.26 in the prior year. For the next year, the market is expecting a contraction of 150.0% in earnings (-$0.37 versus $0.74).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Capital Markets industry. The net income has significantly decreased by 144.2% when compared to the same quarter one year ago, falling from $15.89 million to -$7.02 million.
ICG Group, Inc. is a private equity and venture capital firm specializing in patient capital, growth capital, acquisitions, and mid and late venture investments in public and private companies. The company has a P/E ratio of 13.1, equal to the average internet industry P/E ratio and below the S&P 500 P/E ratio of 17.7. ICG Group has a market cap of $356.3 million and is part of the
industry. Shares are up 17.7% year to date as of the close of trading on Friday.
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-- Written by a member of TheStreet Ratings Staff