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) -- HCA Holdings (NYSE: HCA) has been reiterated by TheStreet Ratings as a sell with a ratings score of D+. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, poor profit margins and weak operating cash flow.
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- HCA HOLDINGS 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, HCA HOLDINGS INC reported lower earnings of $3.49 versus $5.31 in the prior year. For the next year, the market is expecting a contraction of 10.6% in earnings ($3.12 versus $3.49).
- 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 Health Care Providers & Services industry. The net income has significantly decreased by 83.8% when compared to the same quarter one year ago, falling from $1,935.00 million to $314.00 million.
- The gross profit margin for HCA HOLDINGS INC is rather low; currently it is at 18.00%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 3.72% is above that of the industry average.
- Net operating cash flow has declined marginally to $1,263.00 million or 8.94% when compared to the same quarter last year. Despite a decrease in cash flow of 8.94%, HCA HOLDINGS INC is in line with the industry average cash flow growth rate of -17.45%.
- Despite its growing revenue, the company underperformed as compared with the industry average of 16.3%. Since the same quarter one year prior, revenues slightly increased by 8.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
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