Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. NEW YORK ( TheStreet) -- LIN Media (NYSE: LIN) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, solid stock price performance and compelling growth in net income. 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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- Compared to other companies in the Media industry and the overall market, LIN MEDIA LLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Powered by its strong earnings growth of 107.33% and other important driving factors, this stock has surged by 86.56% 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 LIN MEDIA LLC is rather high; currently it is at 58.09%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.47% trails the industry average.
- The debt-to-equity ratio is very high at 10.60 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
- Net operating cash flow has significantly decreased to -$9.53 million or 115.49% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.