NEW YORK (
) has been downgraded by TheStreet Ratings from buy to hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- KYO's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, KYO has a quick ratio of 2.47, which demonstrates the ability of the company to cover short-term liquidity needs.
- KYO, with its decline in revenue, slightly underperformed the industry average of 8.9%. Since the same quarter one year prior, revenues fell by 17.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The share price of KYOCERA CORP has not done very well: it is down 23.14% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.
- The gross profit margin for KYOCERA CORP is rather low; currently it is at 21.70%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 2.30% trails that of the industry average.
- Net operating cash flow has declined marginally to $515.26 million or 5.75% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, KYOCERA CORP has marginally lower results.
Kyocera Corporation develops, produces, and distributes ceramic, semiconductor, and electronic products for the information and communications markets, and environment and energy markets worldwide. The company has a P/E ratio of 51.9, above the average electronics industry P/E ratio of 15.7 and above the S&P 500 P/E ratio of 17.7. Kyocera has a market cap of $15.13 billion and is part of the
industry. Shares are up 3.4% year to date as of the close of trading on Monday.
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-- Written by a member of TheStreet Ratings Staff
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.