NEW YORK ( TheStreet) -- Carmike Cinemas (Nasdaq: CKEC) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall. Highlights from the ratings report include:
- Powered by its strong earnings growth of 160.86% and other important driving factors, this stock has surged by 92.75% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- CARMIKE CINEMAS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, CARMIKE CINEMAS INC continued to lose money by earning -$0.58 versus -$0.97 in the prior year. This year, the market expects an improvement in earnings ($0.80 versus -$0.58).
- Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.29 is very low and demonstrates very weak liquidity.
- The gross profit margin for CARMIKE CINEMAS INC is rather low; currently it is at 20.30%. Regardless of CKEC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.40% trails the industry average.
-- Written by a member of TheStreet RatingsStaff