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 revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.
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Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 9.7%. Since the same quarter one year prior, revenues slightly increased by 9.8%. 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.
- Net operating cash flow has significantly increased by 983.63% to $10.26 million when compared to the same quarter last year. In addition, VIASYSTEMS GROUP INC has also vastly surpassed the industry average cash flow growth rate of -0.80%.
- VIASYSTEMS GROUP INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, VIASYSTEMS GROUP INC increased its bottom line by earning $1.41 versus $0.68 in the prior year. This year, the market expects an improvement in earnings ($1.53 versus $1.41).
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, VIASYSTEMS GROUP INC's return on equity is below that of both the industry average and the S&P 500.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 233.9% when compared to the same quarter one year ago, falling from $3.47 million to -$4.64 million.
Viasystems Group, Inc. provides multi-layer printed circuit boards (PCBs) and electro-mechanical solutions worldwide. The company has a P/E ratio of 10, below the average electronics industry P/E ratio of 16.3 and below the S&P 500 P/E ratio of 17.7. Viasystems Group has a market cap of $342.6 million and is part of the
industry. Shares are down 1.5% year to date as of the close of trading on Thursday.
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-- Written by a member of TheStreet Ratings Staff
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.