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 (
(Nasdaq:) has been reiterated by TheStreet Ratings as a hold with a ratings score of C+ . The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.
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Highlights from the ratings report include:
- Although SNDK's debt-to-equity ratio of 0.23 is very low, it is currently higher than that of the industry average. To add to this, SNDK has a quick ratio of 1.72, which demonstrates the ability of the company to cover short-term liquidity needs.
- The revenue fell significantly faster than the industry average of 23.4%. Since the same quarter one year prior, revenues fell by 24.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for SANDISK CORP is currently lower than what is desirable, coming in at 31.60%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 1.30% significantly trails the industry average.
- Net operating cash flow has significantly decreased to $19.12 million or 92.90% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
Sandisk Corporation designs, develops, and manufactures NAND flash memory storage solutions that are used in various consumer electronics products. The company has a P/E ratio of 16.1, above the average computer hardware industry P/E ratio of 16 and below the S&P 500 P/E ratio of 17.7. SanDisk has a market cap of $10.07 billion and is part of the sector and industry. Shares are down 13.5% year to date as of the close of trading on Tuesday.
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--Written by a member of TheStreet Ratings Staff.