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) -- Goldcorp (NYSE: GG) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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- GG's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, GG has a quick ratio of 1.96, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly increased by 67.87% to $554.00 million when compared to the same quarter last year. In addition, GOLDCORP INC has also vastly surpassed the industry average cash flow growth rate of -26.34%.
- The gross profit margin for GOLDCORP INC is rather high; currently it is at 58.20%. Regardless of GG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GG's net profit margin of 24.10% compares favorably to the industry average.
- GOLDCORP INC's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, GOLDCORP INC increased its bottom line by earning $2.13 versus $1.85 in the prior year.
-- Written by a member of TheStreet Ratings Staff