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"We rate EW SCRIPPS (SSP) a BUY. This is driven by several positive factors, 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- SSP's revenue growth has slightly outpaced the industry average of 9.1%. Since the same quarter one year prior, revenues slightly increased by 9.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, SSP has a quick ratio of 1.92, which demonstrates the ability of the company to cover short-term liquidity needs.
- 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 84.8% when compared to the same quarter one year prior, rising from -$8.85 million to -$1.34 million.
- Net operating cash flow has increased to $30.72 million or 45.98% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 16.34%.
- EW SCRIPPS reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EW SCRIPPS swung to a loss, reporting -$0.02 versus $0.69 in the prior year. This year, the market expects an improvement in earnings ($0.34 versus -$0.02).
- You can view the full analysis from the report here: SSP Ratings Report