Editor's Note: 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
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 solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and feeble growth in the company's earnings per share.
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Highlights from the ratings report include:
- Compared to its closing price of one year ago, NYT's share price has jumped by 46.05%, exceeding the performance of the broader market during that same time frame. Although NYT had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- The gross profit margin for NEW YORK TIMES CO is rather high; currently it is at 57.80%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, NYT's net profit margin of 0.67% significantly trails the industry average.
- NYT, with its decline in revenue, underperformed when compared the industry average of 8.3%. Since the same quarter one year prior, revenues slightly dropped by 2.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- NEW YORK TIMES CO has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, NEW YORK TIMES CO increased its bottom line by earning $1.05 versus $0.34 in the prior year. For the next year, the market is expecting a contraction of 55.2% in earnings ($0.47 versus $1.05).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Media industry. The net income has significantly decreased by 92.5% when compared to the same quarter one year ago, falling from $42.13 million to $3.14 million.
The New York Times Company operates as a multimedia news and information company worldwide. The company operates in two segments, The New York Times Media Group and the New England Media Group. The company has a P/E ratio of 8.7, below the S&P 500 P/E ratio of 17.7. New York Times has a market cap of $1.33 billion and is part of the services sector and media industry. Shares are up 10.8% year to date as of the close of trading on Friday.
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-- Written by a member of TheStreet Ratings Staff
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