Story updated at 9:55 a.m. to reflect market activity.
TiVo fell -0.2% to $11.96 in morning trading.
According to B. Riley analysts TiVO is leveraged to improving domestic trends, and is keeping a tight lid on costs. The company could also see future growth overseas according to the analysts.
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TheStreet Ratings team rates TIVO INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TIVO INC (TIVO) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and notable return on equity. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 7.5%. Since the same quarter one year prior, revenues rose by 29.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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 Software industry and the overall market, TIVO INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has slightly increased to -$23.11 million or 4.17% when compared to the same quarter last year. Despite an increase in cash flow, TIVO INC's average is still marginally south of the industry average growth rate of 10.35%.
- TIVO INC 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 two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, TIVO INC turned its bottom line around by earning $1.98 versus -$0.09 in the prior year. For the next year, the market is expecting a contraction of 85.8% in earnings ($0.28 versus $1.98).
- TIVO has underperformed the S&P 500 Index, declining 7.54% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- You can view the full analysis from the report here: TIVO Ratings Report