Rating Change #5

Yandex NV ( 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.

Highlights from the ratings report include:
  • 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.

Yandex N.V., an Internet and technology company, operates an Internet search engine in Russia and internationally. It offers access to a range of information available online; localized homepages for specific geographic markets; and personalized and email services. The company has a P/E ratio of 36.6, above the average internet industry P/E ratio of 34.7 and above the S&P 500 P/E ratio of 17.7. Yandex has a market cap of $3.76 billion and is part of the technology sector and internet industry. Shares are up 2.5% year to date as of the close of trading on Friday.

You can view the full Yandex Ratings Report or get investment ideas from our investment research center.

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