Journal Communications Inc. Stock Upgraded (JRN)

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) -- Journal Communications (NYSE: JRN) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, revenue growth, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Media industry average. The net income increased by 23.9% when compared to the same quarter one year prior, going from $6.14 million to $7.61 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.4%. Since the same quarter one year prior, revenues slightly increased by 6.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Powered by its strong earnings growth of 30.00% and other important driving factors, this stock has surged by 68.65% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, JRN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Net operating cash flow has increased to $18.88 million or 34.33% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 14.17%.

Journal Communications, Inc. operates as a media company in the United States. As of March 7, 2012, its Broadcasting segment operated approximately 33 radio stations and 13 television stations in 12 states; and one television station under marketing agreement. The company has a P/E ratio of 14.6, below the average media industry P/E ratio of 14.8 and below the S&P 500 P/E ratio of 17.7. Journal has a market cap of $251.3 million and is part of the services sector and media industry. Shares are up 28.4% year to date as of the close of trading on Thursday.

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

-- Written by a member of TheStreet Ratings Staff

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
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