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) -- Whirlpool Corporation (NYSE: WHR) has been reiterated by TheStreet Ratings as a buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.
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- Powered by its strong earnings growth of 166.66% and other important driving factors, this stock has surged by 70.37% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WHR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- WHIRLPOOL CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, WHIRLPOOL CORP increased its bottom line by earning $5.06 versus $4.96 in the prior year. This year, the market expects an improvement in earnings ($9.68 versus $5.06).
- Net operating cash flow has increased to -$305.00 million or 27.89% when compared to the same quarter last year. In addition, WHIRLPOOL CORP has also vastly surpassed the industry average cash flow growth rate of -99.12%.
- The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.49 is very weak and demonstrates a lack of ability to pay short-term obligations.
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