Goldcorp Inc. Stock Hold Recommendation Reiterated (GG)

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) -- Goldcorp (NYSE: GG) 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 largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, weak operating cash flow and a generally disappointing performance in the stock itself.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass

Highlights from the ratings report include:
  • GG's debt-to-equity ratio is very low at 0.10 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, GG has a quick ratio of 2.04, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for GOLDCORP INC is rather high; currently it is at 50.40%. Regardless of GG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GG's net profit margin of 30.44% significantly outperformed against the industry.
  • GG, with its decline in revenue, underperformed when compared the industry average of 3.3%. Since the same quarter one year prior, revenues fell by 16.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Net operating cash flow has declined marginally to $294.00 million or 8.69% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • GOLDCORP INC's earnings per share declined by 35.3% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, GOLDCORP INC reported lower earnings of $1.85 versus $2.13 in the prior year.

Goldcorp Inc. engages in the acquisition, development, exploration, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. It primarily explores for gold ores, as well as for silver, copper, lead, and zinc ores. Goldcorp has a market cap of $21.8 billion and is part of the basic materials sector and metals & mining industry. The company has a P/E ratio of 15.00, below the S&P 500 P/E ratio of 18.00. Shares are down 29.6% year to date as of the close of trading on Friday.

You can view the full Goldcorp Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
null

If you liked this article you might like

These Stocks Have Changed Direction

These Stocks Have Changed Direction

Intermediate Trade: Goldcorp

Intermediate Trade: Goldcorp

5 Precious Metals Plays on the 'Trumpcare' Fallout

5 Precious Metals Plays on the 'Trumpcare' Fallout

Gold and Gold Stocks Lost Their Luster Since Post-Election Highs

Gold and Gold Stocks Lost Their Luster Since Post-Election Highs

Bullish and Bearish Reversals in the Market

Bullish and Bearish Reversals in the Market