NEW YORK ( TheStreet) -- Corinthian Colleges (Nasdaq: COCO) 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, good cash flow from operations and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year. Highlights from the ratings report include:
- 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 101.1% when compared to the same quarter one year prior, rising from -$163.71 million to $1.79 million.
- Net operating cash flow has significantly increased by 15541.44% to $83.08 million when compared to the same quarter last year. In addition, CORINTHIAN COLLEGES INC has also vastly surpassed the industry average cash flow growth rate of -10.85%.
- Although COCO's debt-to-equity ratio of 0.24 is very low, it is currently higher than that of the industry average. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.27 is very weak and demonstrates a lack of ability to pay short-term obligations.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Diversified Consumer Services industry and the overall market, CORINTHIAN COLLEGES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- COCO has underperformed the S&P 500 Index, declining 9.83% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
-- Written by a member of TheStreet RatingsStaff