The firm believes increased completion concerns and a lack of improvement in fundamentals, corresponding with improved labor market conditions, call for a downgrade.
Shares of Monster Worldwide are down -0.36% to $5.57 in pre-market trade.
Separately, TheStreet Ratings team rates MONSTER WORLDWIDE INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate MONSTER WORLDWIDE INC (MWW) 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 good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Net operating cash flow has significantly increased by 318.90% to $18.91 million when compared to the same quarter last year. In addition, MONSTER WORLDWIDE INC has also vastly surpassed the industry average cash flow growth rate of 17.57%.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. 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.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Internet Software & Services industry and the overall market, MONSTER WORLDWIDE INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for MONSTER WORLDWIDE INC is currently extremely low, coming in at 9.28%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.04% significantly trails the industry average.
- You can view the full analysis from the report here: MWW Ratings Report