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 increase in net income, increase in stock price during the past year and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow.
Highlights from the ratings report include:
- Net operating cash flow has significantly decreased to $9.28 million or 58.27% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The gross profit margin for O'CHARLEY'S INC is currently extremely low, coming in at 14.80%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.70% significantly trails the industry average.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 141.0% when compared to the same quarter one year prior, rising from -$4.34 million to $1.78 million.
O'Charley's Inc. engages in the ownership and operation of casual dining restaurants in the United States. The company operates restaurants under the O'Charley's, Ninety Nine, and Stoney River Legendary Steaks names. O'Charley's has a market cap of $156.6 million and is part of the
industry. Shares are up 0.4% year to date as of the close of trading on Tuesday.
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