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"We rate KYOCERA CORP (KYO) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
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. To add to this, KYO has a quick ratio of 2.43, which demonstrates the ability of the company to cover short-term liquidity needs.
- KYOCERA CORP reported flat earnings per share in the most recent quarter. 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 8.3% in earnings ($2.15 versus $2.35).
- KYO, with its decline in revenue, underperformed when compared the industry average of 3.7%. Since the same quarter one year prior, revenues fell by 15.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The company's current return on equity has remained constant since the same quarter one year prior. When compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, KYOCERA CORP's return on equity is below that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: KYO Ratings Report