NEW YORK ( TheStreet) -- LIN TV Corporation (NYSE: TVL) 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, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself. 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 Media industry. The net income increased by 103.8% when compared to the same quarter one year prior, rising from $21.08 million to $42.96 million.
- Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.15 is sturdy.
- The gross profit margin for LIN TV CORP is rather high; currently it is at 63.90%. Regardless of TVL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TVL's net profit margin of 38.50% significantly outperformed against the industry.
- TVL has underperformed the S&P 500 Index, declining 17.19% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- Net operating cash flow has significantly decreased to $7.99 million or 69.89% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
-- Written by a member of TheStreet RatingsStaff