NEW YORK ( TheStreet) -- Coeur D'Alene Mines Corporation (NYSE: CDE) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 5.5%. Since the same quarter one year prior, revenues rose by 18.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CDE's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.11, which illustrates the ability to avoid short-term cash problems.
- The gross profit margin for COEUR D'ALENE MINES CORP is rather high; currently it is at 55.80%. Regardless of CDE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CDE's net profit margin of 4.60% is significantly lower than the same period one year prior.
- Net operating cash flow has decreased to $87.41 million or 32.44% when compared to the same quarter last year. Despite a decrease in cash flow COEUR D'ALENE MINES CORP is still fairing well by exceeding its industry average cash flow growth rate of -52.84%.
- CDE's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 25.51%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
-- Written by a member of TheStreet Ratings Staff