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NEW YORK (TheStreet) -- National Research (NRCIA) has been upgraded by TheStreet Ratings from Sell to Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate NATIONAL RESEARCH CORP (NRCIA) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Health Care Providers & Services industry average. The net income increased by 18.0% when compared to the same quarter one year prior, going from $3.43 million to $4.05 million.
- NRCIA's revenue growth trails the industry average of 19.9%. Since the same quarter one year prior, revenues slightly increased by 7.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The gross profit margin for NATIONAL RESEARCH CORP is rather high; currently it is at 55.11%. Regardless of NRCIA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NRCIA's net profit margin of 16.88% significantly outperformed against the industry.
- NATIONAL RESEARCH CORP has improved earnings per share by 14.3% 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, NATIONAL RESEARCH CORP reported lower earnings of $1.08 versus $2.17 in the prior year. For the next year, the market is expecting a contraction of 31.5% in earnings ($0.74 versus $1.08).
- NRCIA has underperformed the S&P 500 Index, declining 21.97% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- You can view the full analysis from the report here: NRCIA Ratings Report