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 compelling growth in net income, revenue growth and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Food & Staples Retailing industry average. The net income increased by 25.1% when compared to the same quarter one year prior, rising from -$24.01 million to -$17.99 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 4.4%. Since the same quarter one year prior, revenues slightly increased by 2.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- WINN-DIXIE STORES INC has improved earnings per share by 15.4% in the most recent quarter compared to 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, WINN-DIXIE STORES INC swung to a loss, reporting -$0.53 versus $0.67 in the prior year. This year, the market expects an improvement in earnings (-$0.17 versus -$0.53).
- 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 Food & Staples Retailing industry and the overall market, WINN-DIXIE STORES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for WINN-DIXIE STORES INC is currently lower than what is desirable, coming in at 29.10%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.80% trails that of the industry average.
Winn-Dixie Stores, Inc. operates as a food retailing company primarily under the Winn-Dixie banner. The company's stores offer grocery, dairy, frozen food, meat, seafood, produce, deli, bakery, floral, health and beauty, and other general merchandise items. Winn-Dixie Stores has a market cap of $531.9 million and is part of the
industry. Shares are up 1.1% year to date as of the close of trading on Friday.
You can view the full
or get investment ideas from our
-- Written by a member of TheStreet RatingsStaff