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) -- Yandex (Nasdaq: 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, robust 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 company's profit margins have been poor overall.
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- 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.
- YNDX's very impressive revenue growth exceeded the industry average of 33.5%. Since the same quarter one year prior, revenues leaped by 52.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- YNDX has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, YNDX has a quick ratio of 2.08, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has increased to $126.23 million or 48.42% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 16.62%.
- The gross profit margin for YANDEX NV is currently very high, coming in at 76.40%. 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 30.37% significantly outperformed against the industry.
-- Written by a member of TheStreet Ratings Staff