Editor's Note: 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 NEW YORK ( TheStreet) -- Yandex (Nasdaq: YNDX) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.
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- Compared to other companies in the Internet Software & Services industry and the overall market, YANDEX NV's return on equity exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has improved to $82.38 million from having none in the same quarter last year. Since the company had no net operating cash flow for the prior period, we cannot calculate a percent change in order to compare its growth rate with that of its industry average.
- YNDX's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 26.46%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter.
- The gross profit margin for YANDEX NV is currently very high, coming in at 74.30%. Regardless of YNDX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, YNDX's net profit margin of 30.10% compares favorably to the industry average.
-- Written by a member of TheStreet Ratings Staff