EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Delphi Automotive as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- Compared to its closing price of one year ago, DLPH's share price has jumped by 29.23%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DLPH should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- 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 Auto Components industry and the overall market, DELPHI AUTOMOTIVE PLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- DELPHI AUTOMOTIVE PLC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. 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, DELPHI AUTOMOTIVE PLC increased its bottom line by earning $4.43 versus $3.89 in the prior year. This year, the market expects an improvement in earnings ($5.36 versus $4.43).
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 4.2%. Since the same quarter one year prior, revenues slightly dropped by 2.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The gross profit margin for DELPHI AUTOMOTIVE PLC is rather low; currently it is at 22.25%. Regardless of DLPH's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.50% trails the industry average.
- You can view the full Delphi Automotive Ratings Report.