NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 8.2%. Since the same quarter one year prior, revenues rose by 35.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for PVH CORP is rather high; currently it is at 57.40%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -1.03% is in-line with the industry average.
- Compared to its closing price of one year ago, PVH's share price has jumped by 51.38%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- PVH CORP 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. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PVH CORP increased its bottom line by earning $5.87 versus $4.36 in the prior year. This year, the market expects an improvement in earnings ($7.10 versus $5.87).
- The debt-to-equity ratio of 1.09 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, PVH's quick ratio is somewhat strong at 1.22, demonstrating the ability to handle short-term liquidity needs.
PVH Corp. operates as an apparel company in the United States and internationally. PVH has a market cap of $10.0 billion and is part of the consumer goods sector and consumer non-durables industry. The company has a P/E ratio of 32.00, above the S&P 500 P/E ratio of 18.00. Shares are up 7.7% year to date as of the close of trading on Wednesday.
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--Written by a member of TheStreet Ratings Staff.