SINA Corporation Stock Hold Recommendation Reiterated (SINA)

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) -- SINA Corporation (Nasdaq: SINA) has been reiterated by TheStreet Ratings as a hold with a ratings score of C- . The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

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Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 102.9% when compared to the same quarter one year prior, rising from -$336.34 million to $9.88 million.
  • SINA's revenue growth trails the industry average of 33.2%. Since the same quarter one year prior, revenues rose by 16.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • SINA CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SINA CORP reported poor results of -$4.58 versus -$0.39 in the prior year. This year, the market expects an improvement in earnings ($0.08 versus -$4.58).
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Internet Software & Services industry and the overall market, SINA CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • SINA has underperformed the S&P 500 Index, declining 18.30% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

SINA Corporation provides online media and mobile value-added services (MVAS) in the People's Republic of China. It provides advertising, non-advertising, and free services through SINA.com, Weibo.com, and SINA Mobile. SINA has a market cap of $3.74 billion and is part of the technology sector and internet industry. The company has a P/E ratio of 375.7, above the S&P 500 P/E ratio of 17.7. Shares are up 12.2% year to date as of the close of trading on Thursday.

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

--Written by a member of TheStreet Ratings Staff.

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