Mead Johnson Nutrition Company Stock Upgraded (MJN)
NEW YORK (
)
-- Mead Johnson Nutrition Company
(NYSE:
) has been upgraded by TheStreet Ratings from sell to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- MJN's revenue growth trails the industry average of 25.5%. Since the same quarter one year prior, revenues rose by 13.4%. 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.
- Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.00 is weak.
- MEAD JOHNSON NUTRITION CO's earnings per share declined by 12.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MEAD JOHNSON NUTRITION CO increased its bottom line by earning $2.47 versus $2.20 in the prior year. This year, the market expects an improvement in earnings ($3.10 versus $2.47).
- Net operating cash flow has slightly increased to $172.90 million or 4.59% when compared to the same quarter last year. Despite an increase in cash flow of 4.59%, MEAD JOHNSON NUTRITION CO is still growing at a significantly lower rate than the industry average of 18938.52%.
- The gross profit margin for MEAD JOHNSON NUTRITION CO is rather high; currently it is at 63.10%. Regardless of MJN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 9.40% trails the industry average.
.
Mead Johnson Nutrition Company manufactures, distributes, and sells infant formulas, children's nutritional products, and other nutritional products in Asia, Europe, Latin America, and North America. The company has a P/E ratio of 27, below the average food & beverage industry P/E ratio of 28 and above the S&P 500 P/E ratio of 17.7. Mead Johnson Nutrition has a market cap of $14.4 billion and is part of the
sector and
industry. Shares are up 8% year to date as of the close of trading on Monday.
You can view the full
Mead Johnson Nutrition Ratings Report
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-- Written by a member of TheStreet RatingsStaff
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