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) -- United Continental Holdings (NYSE: UAL) has been reiterated by TheStreet Ratings as a hold with a ratings score of C. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.
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- Compared to its closing price of one year ago, UAL's share price has jumped by 43.86%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- UAL, with its decline in revenue, underperformed when compared the industry average of 10.9%. Since the same quarter one year prior, revenues slightly dropped by 2.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- UNITED CONTINENTAL HLDGS INC 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, UNITED CONTINENTAL HLDGS INC swung to a loss, reporting -$2.32 versus $2.01 in the prior year. This year, the market expects an improvement in earnings ($3.75 versus -$2.32).
- The gross profit margin for UNITED CONTINENTAL HLDGS INC is rather low; currently it is at 18.10%. It has decreased from the same quarter the previous year.
- Net operating cash flow has significantly decreased to $90.00 million or 66.03% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, UNITED CONTINENTAL HLDGS INC has marginally lower results.
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