NEW YORK ( TheStreet) -- TTM Technologies (Nasdaq: TTMI) has been downgraded by TheStreet Ratings from buy to hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins. Highlights from the ratings report include:
- TTMI, with its decline in revenue, slightly underperformed the industry average of 9.1%. Since the same quarter one year prior, revenues fell by 12.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- TTMI's debt-to-equity ratio of 0.62 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.24 is sturdy.
- TTM TECHNOLOGIES INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, TTM TECHNOLOGIES INC reported lower earnings of $0.51 versus $0.93 in the prior year. This year, the market expects an improvement in earnings ($1.23 versus $0.51).
- The gross profit margin for TTM TECHNOLOGIES INC is currently lower than what is desirable, coming in at 25.20%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.20% trails that of the industry average.
- Net operating cash flow has declined marginally to $33.50 million or 9.65% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, TTM TECHNOLOGIES INC has marginally lower results.
-- Written by a member of TheStreet Ratings Staff