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"We rate KYOCERA CORP (KYO) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 deteriorating net income, disappointing return on equity and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 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 2.63, which clearly demonstrates the ability to cover short-term cash needs.
- KYO, with its decline in revenue, slightly underperformed the industry average of 5.7%. Since the same quarter one year prior, revenues slightly dropped by 1.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- KYOCERA CORP's earnings per share declined by 16.1% 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 $2.35 versus $1.93 in the prior year. For the next year, the market is expecting a contraction of 8.7% in earnings ($2.14 versus $2.35).
- The gross profit margin for KYOCERA CORP is currently lower than what is desirable, coming in at 31.02%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 5.81% trails that of the industry average.
- Net operating cash flow has decreased to $194.71 million or 30.47% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, KYOCERA CORP has marginally lower results.
- You can view the full analysis from the report here: KYO Ratings Report