NEW YORK (TheStreet) -- Shares of Cash America International (CSH) are down -5.35% to $43.33 after FBR Capital Markets downgraded its rating to "market perform" from "outperform" and lowered its price target to $46. from $48
Separately, TheStreet Ratings team rates CASH AMERICA INTL INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CASH AMERICA INTL INC (CSH) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CSH's revenue growth has slightly outpaced the industry average and have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.57, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 4.46, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for CASH AMERICA INTL INC is rather high; currently it is at 59.83%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.27% trails the industry average.
- CASH AMERICA INTL INC has improved earnings per share by 10.7% 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, CASH AMERICA INTL INC increased its bottom line by earning $4.64 versus $3.40 in the prior year. For the next year, the market is expecting a contraction of 5.2% in earnings ($4.40 versus $4.64).
- You can view the full analysis from the report here: CSH Ratings Report