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, good cash flow from operations, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
- EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 17.8%. Since the same quarter one year prior, revenues slightly increased by 9.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.08, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has significantly increased by 101.89% to $2.28 million when compared to the same quarter last year. In addition, TIFFANY & CO has also vastly surpassed the industry average cash flow growth rate of 11.24%.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 33.31% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- The gross profit margin for TIFFANY & CO is rather high; currently it is at 61.10%. Regardless of TIF's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TIF's net profit margin of 9.33% compares favorably to the industry average.
Tiffany & Co., through its subsidiaries, engages in the design, manufacture, and retail of jewelry worldwide. The company operates through Americas, Asia-Pacific, Japan, Europe, and Other segments. Tiffany has a market cap of $9.2 billion and is part of the services sector and specialty retail industry. The company has a P/E ratio of 23.00, above the S&P 500 P/E ratio of 18.00. Shares are up 26.6% year to date as of the close of trading on Thursday.
You can view the full
or get investment ideas from our
--Written by a member of TheStreet Ratings Staff.