Progressive Waste Solutions Ltd Stock Upgraded (BIN)

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) -- Progressive Waste Solutions (NYSE: BIN) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and a generally disappointing performance in the stock itself.

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Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 11.3%. Since the same quarter one year prior, revenues slightly increased by 8.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Services & Supplies industry. The net income increased by 104.0% when compared to the same quarter one year prior, rising from -$296.19 million to $11.75 million.
  • 38.70% is the gross profit margin for PROGRESSIVE WASTE SOLUTIONS which we consider to be strong. Regardless of BIN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.37% trails the industry average.
  • The debt-to-equity ratio of 1.33 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, BIN maintains a poor quick ratio of 0.89, which illustrates the inability to avoid short-term cash problems.
  • Net operating cash flow has decreased to $74.18 million or 35.61% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
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Progressive Waste Solutions Ltd. operates as a vertically integrated waste management company in North America. The company provides non-hazardous solid waste collection, recycling, and disposal services to commercial, industrial, municipal, and residential customers in 12 U.S. The company has a P/E ratio of 22.3, above the S&P 500 P/E ratio of 17.7. Progressive Waste has a market cap of $2.57 billion and is part of the industrial goods sector and materials & construction industry. Shares are up 3.4% year to date as of the close of trading on Friday.

You can view the full Progressive Waste 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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