NEW YORK (TheStreet) -- SodaStream International (SODA) shares are up 1.4% to $31.91 on Tuesday following reports that the company was in talks to sell itself for $40 per share, sources told the Israeli newspaper TheMarker.
The $40 per share purchase price values the beverage carbonation systems manufacturer at about $830 million.
SodaStream went public in 2010 at $20 per share before reaching an all time high of $78 per share in 2011.
Watch the video below for more on SodaStream's possible sale:
TheStreet Ratings team rates SODASTREAM INTERNATIONAL LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SODASTREAM INTERNATIONAL LTD (SODA) 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 revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 5.9%. Since the same quarter one year prior, revenues slightly increased by 6.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- SODA's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.02, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has significantly increased by 105.09% to $0.64 million when compared to the same quarter last year. Despite an increase in cash flow of 105.09%, SODASTREAM INTERNATIONAL LTD is still growing at a significantly lower rate than the industry average of 247.68%.
- SODASTREAM INTERNATIONAL LTD's earnings per share declined by 28.3% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, SODASTREAM INTERNATIONAL LTD reported lower earnings of $1.96 versus $2.09 in the prior year. For the next year, the market is expecting a contraction of 5.1% in earnings ($1.86 versus $1.96).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Household Durables industry. The net income has significantly decreased by 28.1% when compared to the same quarter one year ago, falling from $12.86 million to $9.24 million.
- You can view the full analysis from the report here: SODA Ratings Report
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