NEW YORK ( TheStreet) -- Concha y Toro Winery Inc (NYSE: VCO) has been downgraded by TheStreet Ratings from buy to hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity. Highlights from the ratings report include:
- The current debt-to-equity ratio, 0.44, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.75 is somewhat weak and could be cause for future problems.
- VINA CONCHA Y TORO SA's earnings per share declined by 45.8% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, VINA CONCHA Y TORO SA increased its bottom line by earning $2.43 versus $2.39 in the prior year.
- 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 Beverages industry and the overall market, VINA CONCHA Y TORO SA's return on equity is below that of both the industry average and the S&P 500.
- The gross profit margin for VINA CONCHA Y TORO SA is currently lower than what is desirable, coming in at 33.00%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 8.90% trails that of the industry average.