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 robust revenue growth, expanding profit margins, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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Highlights from the ratings report include:
- LDR's revenue growth has slightly outpaced the industry average of 13.1%. 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 113.47%.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness 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.
- LANDAUER INC's earnings per share declined by 11.8% 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, 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 6.9% in earnings ($2.42 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 24.1, 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 $541.9 million and is part of the
industry. Shares are up 14.3% year to date as of the close of trading on Tuesday.
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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.