NEW YORK (
-- Weight Watchers International
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- Net operating cash flow has significantly increased by 186.41% to $184.06 million when compared to the same quarter last year. Despite an increase in cash flow of 186.41%, WEIGHT WATCHERS INTL INC is still growing at a significantly lower rate than the industry average of 349.73%.
- The gross profit margin for WEIGHT WATCHERS INTL INC is rather high; currently it is at 58.00%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.60% is above that of the industry average.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Diversified Consumer Services industry. The net income increased by 65.1% when compared to the same quarter one year prior, rising from $44.58 million to $73.59 million.
- WEIGHT WATCHERS INTL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, WEIGHT WATCHERS INTL INC increased its bottom line by earning $2.56 versus $2.29 in the prior year. This year, the market expects an improvement in earnings ($4.00 versus $2.56).
- The revenue growth came in higher than the industry average of 0.3%. Since the same quarter one year prior, revenues rose by 29.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
Weight Watchers International, Inc. provides weight management services worldwide. It offers various services and products that are built upon weight management plans comprising nutritional, exercise, and behavioral tools and approaches. The company has a P/E ratio of 28.2, equal to the average diversified services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Weight Watchers International has a market cap of $6.1 billion and is part of the
industry. Shares are up 122.9% year to date as of the close of trading on Wednesday.
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