NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat 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. Along with this, the company maintains a quick ratio of 2.54, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has significantly increased by 249.75% to $134.39 million when compared to the same quarter last year. In addition, KYOCERA CORP has also vastly surpassed the industry average cash flow growth rate of -41.31%.
- KYO, with its decline in revenue, underperformed when compared the industry average of 5.7%. Since the same quarter one year prior, revenues fell by 10.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- KYOCERA CORP's earnings per share declined by 18.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, KYOCERA CORP increased its bottom line by earning $8.06 versus $2.34 in the prior year. For the next year, the market is expecting a contraction of 34.2% in earnings ($5.30 versus $8.06).
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 56.2, above the average electronics industry P/E ratio of 11.8 and above the S&P 500 P/E ratio of 17.7. Kyocera has a market cap of $15.46 billion and is part of the
industry. Shares are up 13% year to date as of the close of trading on Friday.
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-- Written by a member of TheStreet RatingsStaff