Clear Channel Outdoor Holdings Inc Stock Upgraded (CCO)

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) -- Clear Channel Outdoor Holdings (NYSE: CCO) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and expanding profit margins. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

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Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 472.9% when compared to the same quarter one year prior, rising from $8.91 million to $51.04 million.
  • CCO's revenue growth trails the industry average of 12.4%. Since the same quarter one year prior, revenues slightly increased by 1.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 47.23% is the gross profit margin for CLEAR CHANNEL OUTDOOR HLDGS which we consider to be strong. Regardless of CCO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.53% trails the industry average.
  • In its most recent trading session, CCO has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • Net operating cash flow has decreased to $52.48 million or 25.66% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

Clear Channel Outdoor Holdings, Inc., an outdoor advertising company, owns or operates advertising display faces worldwide. It operates in two segments, Americas and International. Clear Channel Outdoor has a market cap of $343.1 million and is part of the services sector and media industry. Shares are down 24.2% year to date as of the close of trading on Friday.

You can view the full Clear Channel Outdoor Ratings Report or get investment ideas from our investment research center.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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