Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link
NEW YORK (
-- LIN Media
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth, increase in net income, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
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Highlights from the ratings report include:
- Compared to other companies in the Media industry and the overall market, LIN MEDIA LLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The revenue growth greatly exceeded the industry average of 8.4%. Since the same quarter one year prior, revenues rose by 22.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 630.55% and other important driving factors, this stock has surged by 349.27% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LIN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 647.4% when compared to the same quarter one year prior, rising from $19.66 million to $146.94 million.
- The gross profit margin for LIN MEDIA LLC is rather high; currently it is at 57.02%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, LIN's net profit margin of 90.08% significantly outperformed against the industry.
LIN Media LLC, together with its subsidiaries, operates as a local multimedia company in the United States. LIN Media has a market cap of $824.1 million and is part of the services sector and media industry. Shares are unchanged year to date as of the close of trading on Friday.
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