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"We rate YY INC -ADR (YY) a BUY. This is driven by some important positives, 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 robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- YY's very impressive revenue growth greatly exceeded the industry average of 28.1%. Since the same quarter one year prior, revenues leaped by 107.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- YY INC -ADR 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 year. We feel that this trend should continue. During the past fiscal year, YY INC -ADR increased its bottom line by earning $1.34 versus $0.21 in the prior year. This year, the market expects an improvement in earnings ($2.98 versus $1.34).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 123.8% when compared to the same quarter one year prior, rising from $21.15 million to $47.33 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, YY INC -ADR's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for YY INC -ADR is rather high; currently it is at 51.71%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 28.58% significantly outperformed against the industry average.
- You can view the full analysis from the report here: YY Ratings Report