NEW YORK ( TheStreet) -- SanDisk (Nasdaq: SNDK) has been reiterated by TheStreet Ratings as a hold with a ratings score of C+ . 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 a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.
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- Although SNDK's debt-to-equity ratio of 0.23 is very low, it is currently higher than that of the industry average.
- The revenue fell significantly faster than the industry average of 23.4%. Since the same quarter one year prior, revenues fell by 24.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The share price of SANDISK CORP has not done very well: it is down 5.35% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- The gross profit margin for SANDISK CORP is currently lower than what is desirable, coming in at 31.60%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 1.30% significantly trails the industry average.
- Net operating cash flow has significantly decreased to $19.12 million or 92.90% 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 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.