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"We rate LIBERTY GLOBAL PLC (LBTYB) a BUY. This is driven by multiple strengths, 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 solid stock price performance, compelling growth in net income, revenue growth, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- 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 118.9% when compared to the same quarter one year prior, rising from -$830.10 million to $157.10 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 8.9%. Since the same quarter one year prior, revenues slightly increased by 5.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for LIBERTY GLOBAL PLC is rather high; currently it is at 63.09%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 3.49% trails the industry average.
- Net operating cash flow has slightly increased to $1,153.40 million or 3.00% when compared to the same quarter last year. Despite an increase in cash flow, LIBERTY GLOBAL PLC's cash flow growth rate is still lower than the industry average growth rate of 16.30%.
- You can view the full analysis from the report here: LBTYB Ratings Report