NEW YORK ( TheStreet) -- Liberty Global (Nasdaq: LBTYA) 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 revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow.
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- LBTYA's revenue growth has slightly outpaced the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 9.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 100.00% and other important driving factors, this stock has surged by 52.81% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.
- The gross profit margin for LIBERTY GLOBAL PLC is rather high; currently it is at 62.90%. Regardless of LBTYA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LBTYA's net profit margin of -0.03% significantly underperformed when compared to the industry average.
- The debt-to-equity ratio is very high at 19.20 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, LBTYA has a quick ratio of 0.64, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- Net operating cash flow has decreased to $557.70 million or 30.78% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
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