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 hold with a ratings score of C+ . The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.
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Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 4.6%. Since the same quarter one year prior, revenues slightly increased by 0.9%. 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.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Software industry and the overall market, SYMANTEC CORP's return on equity exceeds that of both the industry average and the S&P 500.
- 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 change in net income from the same quarter one year ago has significantly exceeded that of the Software industry average, but is less than that of the S&P 500. The net income has decreased by 9.9% when compared to the same quarter one year ago, dropping from $191.00 million to $172.00 million.
- Net operating cash flow has decreased to $340.00 million or 32.40% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
Symantec Corporation provides security, storage, and systems management solutions to various organization and consumers worldwide. It operates in four segments: Consumer, Security and Compliance, Storage and Server Management, and Services. The company has a P/E ratio of 11.5, above the average computer software & services industry P/E ratio of 11 and below the S&P 500 P/E ratio of 17.7. Symantec has a market cap of $12.02 billion and is part of the
industry. Shares are up 15% year to date as of the close of trading on Wednesday.
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--Written by a member of TheStreet Ratings Staff.