NEW YORK (
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and premium valuation.
Highlights from the ratings report include:
- LDR's revenue growth has slightly outpaced the industry average of 12.7%. Since the same quarter one year prior, revenues rose by 20.9%. 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.
- The gross profit margin for LANDAUER INC is rather high; currently it is at 65.80%. Regardless of LDR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LDR's net profit margin of 18.20% significantly outperformed against the industry.
- Net operating cash flow has slightly increased to $8.05 million or 1.69% when compared to the same quarter last year. Despite an increase in cash flow of 1.69%, LANDAUER INC is still growing at a significantly lower rate than the industry average of 114.15%.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, LDR has underperformed the S&P 500 Index, declining 16.18% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
Landauer, Inc., together with its subsidiaries, provides technical and analytical services to determine occupational and environmental radiation exposure primarily in the United States and Europe. The company operates in two segments, Radiation Monitoring and Medical Physics. The company has a P/E ratio of 20.7, equal to the average electronics industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Landauer has a market cap of $465.7 million and is part of the
industry. Shares are down 3.4% year to date as of the close of trading on Wednesday.
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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.