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 revenue growth, notable return on equity, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.1%. Since the same quarter one year prior, revenues slightly increased by 5.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Health Care Providers & Services industry and the overall market, LANDAUER INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- The gross profit margin for LANDAUER INC is rather high; currently it is at 65.60%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.00% significantly outperformed against the industry average.
- LDR's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that LDR's debt-to-equity ratio is low, the quick ratio, which is currently 0.58, displays a potential problem in covering short-term cash needs.
- LANDAUER INC has improved earnings per share by 12.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, LANDAUER INC increased its bottom line by earning $2.60 versus $2.52 in the prior year. For the next year, the market is expecting a contraction of 1.1% in earnings ($2.57 versus $2.60).
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 22.8, above the average electronics industry P/E ratio of 22.3 and above the S&P 500 P/E ratio of 17.7. Landauer has a market cap of $542 million and is part of the
industry. Shares are up 16.3% year to date as of the close of trading on Monday.
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-- Written by a member of TheStreet RatingsStaff