Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link
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 robust revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
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Highlights from the ratings report include:
- TC's very impressive revenue growth greatly exceeded the industry average of 3.2%. Since the same quarter one year prior, revenues leaped by 110.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 40.34% is the gross profit margin for THOMPSON CREEK METALS CO INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 24.79% is above that of the industry average.
- TC's debt-to-equity ratio of 0.87 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that TC's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.98 is high and demonstrates strong liquidity.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Metals & Mining industry average, but is greater than that of the S&P 500. The net income increased by 420.8% when compared to the same quarter one year prior, rising from -$19.20 million to $61.60 million.
- TC has underperformed the S&P 500 Index, declining 18.40% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
Thompson Creek Metals Company Inc. is engaged in mining, milling, processing, and marketing of copper, gold and molybdenum products in the United States and Canada. The company operates in three segments: Copper-Gold, US Operations Molybdenum, and Canadian Operations Molybdenum. Thompson Creek has a market cap of $607.4 million and is part of the basic materials sector and metals & mining industry. Shares are up 30.3% year to date as of the close of trading on Friday.
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