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 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, largely solid financial position with reasonable debt levels by most measures, increase in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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Highlights from the ratings report include:
- SNDK's revenue growth has slightly outpaced the industry average of 10.4%. Since the same quarter one year prior, revenues rose by 11.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Although SNDK's debt-to-equity ratio of 0.24 is very low, it is currently higher than that of the industry average.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Computers & Peripherals industry. The net income increased by 45.3% when compared to the same quarter one year prior, rising from $114.39 million to $166.23 million.
- Net operating cash flow has significantly increased by 605.11% to $473.65 million when compared to the same quarter last year. In addition, SANDISK CORP has also vastly surpassed the industry average cash flow growth rate of -11.05%.
- 44.30% is the gross profit margin for SANDISK CORP which we consider to be strong. 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 12.39% trails the industry average.
Sandisk Corporation designs, develops, manufactures, and markets flash storage card products that are used in various consumer electronics products. SanDisk has a market cap of $13.0 billion and is part of the technology sector and computer hardware industry. The company has a P/E ratio of 28.00, above the S&P 500 P/E ratio of 18.00. Shares are up 23.4% 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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