The Norwegian seafood company reported Q1 operating results that it says were the best the company has ever seen.
Marine Harvest earned 1.08 billion in Norwegian kroner or $181 million in operating profits for the quarter.
The number surpassed analyst expectations and more than doubled the 482 million kroner the company earned in the same quarter last year.
TheStreet Ratings team rates MARINE HARVEST ASA as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate MARINE HARVEST ASA (MHG) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been premium valuation based on our review of its current price compared to such things as earnings and book value."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The current debt-to-equity ratio, 0.51, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.87 is somewhat weak and could be cause for future problems.
- 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 Food Products industry and the overall market on the basis of return on equity, MARINE HARVEST ASA has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- Compared to where it was a year ago today, the stock is now trading at a higher level, and has traded in line with the S&P 500. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry, implying reduced upside potential.
- Net operating cash flow has increased to -$11.45 million or 46.28% when compared to the same quarter last year. Despite an increase in cash flow, MARINE HARVEST ASA's average is still marginally south of the industry average growth rate of 50.07%.
- You can view the full analysis from the report here: MHG Ratings Report