NEW YORK (
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including generally poor debt management, poor profit margins and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 10.7%. Since the same quarter one year prior, revenues rose by 27.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, NORANDA ALUMINUM HOLDING CP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The debt-to-equity ratio of 1.18 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, NOR maintains a poor quick ratio of 0.98, which illustrates the inability to avoid short-term cash problems.
- The gross profit margin for NORANDA ALUMINUM HOLDING CP is rather low; currently it is at 18.70%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 7.70% significantly trails the industry average.
Noranda Aluminum Holding Corporation engages in the production and sale of primary aluminum products and rolled aluminum coils in the United States. It mines, produces, and sells bauxite used for alumina production. The company has a P/E ratio of 4.8, above the average metals & mining industry P/E ratio of 4.5 and below the S&P 500 P/E ratio of 17.7. Noranda Aluminum has a market cap of $707.3 million and is part of the
industry. Shares are up 36.5% year to date as of the close of trading on Thursday.
You can view the full
or get investment ideas from our
-- Written by a member of TheStreet RatingsStaff