NEW YORK ( TheStreet) -- Liberty Global (Nasdaq: LBTYK) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, expanding profit margins, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
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- LBTYK's revenue growth has slightly outpaced the industry average of 1.2%. 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 47.67% 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, LBTYK should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- LIBERTY GLOBAL PLC 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, LIBERTY GLOBAL PLC continued to lose money by earning -$2.33 versus -$3.18 in the prior year. This year, the market expects an improvement in earnings ($1.90 versus -$2.33).
- The gross profit margin for LIBERTY GLOBAL PLC is rather high; currently it is at 62.89%. Regardless of LBTYK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LBTYK's net profit margin of -0.03% significantly underperformed when compared to the industry average.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Media industry and the overall market, LIBERTY GLOBAL PLC's return on equity significantly trails that of both the industry average and the S&P 500.