Grupo Televisa S.A. Stock Upgraded (TV)

NEW YORK ( TheStreet) -- Grupo Televisa S.A (NYSE: TV) has been upgraded by TheStreet Ratings from hold to buy. Among the primary strengths of the company is its expanding profit margins over time. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • 44.70% is the gross profit margin for GRUPO TELEVISA SAB which we consider to be strong. Regardless of TV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 8.10% trails the industry average.
  • GRUPO TELEVISA SAB's earnings per share declined by 36.4% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, GRUPO TELEVISA SAB reported lower earnings of $1.05 versus $1.32 in the prior year. This year, the market expects an improvement in earnings ($1.12 versus $1.05).
  • TV, with its decline in revenue, underperformed when compared the industry average of 13.4%. Since the same quarter one year prior, revenues slightly dropped by 7.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The debt-to-equity ratio of 1.01 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, TV's quick ratio is somewhat strong at 1.23, demonstrating the ability to handle short-term liquidity needs.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Media industry and the overall market on the basis of return on equity, GRUPO TELEVISA SAB has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

Grupo Televisa, S.A.B. operates as a media company. The company has a P/E ratio of 21.2, above the average media industry P/E ratio of 0.9 and above the S&P 500 P/E ratio of 17.7. Grupo Televisa S.A has a market cap of $12.21 billion and is part of the services sector and media industry. Shares are up 2.5% year to date as of the close of trading on Monday.

You can view the full Grupo Televisa S.A Ratings Report or get investment ideas from our investment research center.

-- Written by a member of TheStreet Ratings Staff

TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
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Strong On High Relative Volume: Grupo Televisa SAB (TV)