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 (
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow.
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Highlights from the ratings report include:
- LYV's revenue growth has slightly outpaced the industry average of 3.9%. Since the same quarter one year prior, revenues rose by 12.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 50.58% and other important driving factors, this stock has surged by 70.89% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- Even though the current debt-to-equity ratio is 1.28, it is still below the industry average, suggesting that this level of debt is acceptable within the Media industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.78 is weak.
- The gross profit margin for LIVE NATION ENTERTAINMENT is rather low; currently it is at 24.01%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -5.08% is significantly below that of the industry average.
- Net operating cash flow has decreased to $152.93 million or 44.99% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
Live Nation Entertainment, Inc. operates as a live entertainment company. The company operates through Concerts, Ticketing, Artist Nation, and Sponsorship & Advertising segments. Live Nation Entertainment has a market cap of $4.31 billion and is part of the services sector and media industry. Shares are up 9.7% year to date as of the close of trading on Monday.
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