The analyst firm reiterated its "buy" rating for the company. McGraw Hill Financial management appears highly committed to delivering margin upside from several initiatives according to UBS analysts.
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Separately, TheStreet Ratings team rates MCGRAW HILL FINANCIAL as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MCGRAW HILL FINANCIAL (MHFI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, notable return on equity and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- MHFI's revenue growth has slightly outpaced the industry average of 3.6%. Since the same quarter one year prior, revenues slightly increased by 4.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 64.81% and other important driving factors, this stock has surged by 37.23% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MHFI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- MCGRAW HILL FINANCIAL 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. We feel that this trend should continue. During the past fiscal year, MCGRAW HILL FINANCIAL increased its bottom line by earning $2.90 versus $2.38 in the prior year. This year, the market expects an improvement in earnings ($3.79 versus $2.90).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Diversified Financial Services industry and the overall market, MCGRAW HILL FINANCIAL's return on equity significantly exceeds that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: MHFI Ratings Report