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) -- Delphi Automotive (NYSE: DLPH) 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 notable return on equity and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and generally higher debt management risk.
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- Compared to other companies in the Auto Components industry and the overall market, DELPHI AUTOMOTIVE PLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Compared to its closing price of one year ago, DLPH's share price has jumped by 40.52%, exceeding the performance of the broader market during that same time frame. Although DLPH had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- DELPHI AUTOMOTIVE PLC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, DELPHI AUTOMOTIVE PLC increased its bottom line by earning $3.32 versus $1.69 in the prior year. This year, the market expects an improvement in earnings ($4.24 versus $3.32).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Auto Components industry. The net income has significantly decreased by 53.1% when compared to the same quarter one year ago, falling from $290.00 million to $136.00 million.
- Net operating cash flow has decreased to $310.00 million or 33.76% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
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