NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 25.7%. Since the same quarter one year prior, revenues slightly increased by 3.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the Household Durables industry average, but is less than that of the S&P 500. The net income increased by 6.2% when compared to the same quarter one year prior, going from $75.70 million to $80.40 million.
- Net operating cash flow has increased to $281.50 million or 37.51% when compared to the same quarter last year. In addition, NEWELL RUBBERMAID INC has also vastly surpassed the industry average cash flow growth rate of -32.39%.
- 39.90% is the gross profit margin for NEWELL RUBBERMAID INC which we consider to be strong. Regardless of NWL's high profit margin, it has managed to decrease from the same period last year.
- NEWELL RUBBERMAID INC has improved earnings per share by 12.0% 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, NEWELL RUBBERMAID INC reported lower earnings of $0.44 versus $0.94 in the prior year. This year, the market expects an improvement in earnings ($1.69 versus $0.44).
Newell Rubbermaid Inc., together with its subsidiaries, designs, manufactures, packages, and distributes consumer and commercial products. It operates in three segments: Home and Family; Office Products; and Tools, Hardware, and Commercial Products. The company has a P/E ratio of 39.6, below the average consumer durables industry P/E ratio of 43.8 and above the S&P 500 P/E ratio of 17.7. Newell Rubbermaid has a market cap of $4.94 billion and is part of the
industry. Shares are up 16.5% year to date as of the close of trading on Monday.
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