NEW YORK (

TheStreet

)

-- Washington Post Company

(NYSE:

WPO

) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • Net operating cash flow has significantly decreased to $49.36 million or 73.32% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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 Media industry. The net income has significantly decreased by 65.9% when compared to the same quarter one year ago, falling from $45.84 million to $15.62 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Media industry and the overall market on the basis of return on equity, WASHINGTON POST has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Although WPO's debt-to-equity ratio of 0.15 is very low, it is currently higher than that of the industry average. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.10, which illustrates the ability to avoid short-term cash problems.

The Washington Post Company, together with its subsidiaries, operates as a diversified education and media company in the United States and internationally. Washington Post has a market cap of $2.8 billion and is part of the

TheStreet Recommends

services

sector and

media

industry.

You can view the full

Washington Post Ratings Report

or get investment ideas from our

investment research center

.

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