NEW YORK ( TheStreet) -- Grupo Televisa S.A (NYSE: TV) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, good cash flow from operations, notable return on equity, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- The gross profit margin for GRUPO TELEVISA SAB is rather high; currently it is at 56.20%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.30% is above that of the industry average.
- Net operating cash flow has significantly increased by 74.49% to $258.57 million when compared to the same quarter last year. In addition, GRUPO TELEVISA SAB has also vastly surpassed the industry average cash flow growth rate of 13.45%.
- 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, GRUPO TELEVISA SAB has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- The revenue fell significantly faster than the industry average of 20.4%. Since the same quarter one year prior, revenues fell by 33.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.