Rangold Resources Downgraded From Buy to Hold
Randgold Resources (GOLD) has been
downgraded by TheStreet Ratings from Buy to Hold with a ratings
score of C. TheStreet Ratings Team has this to say about their
"We rate RANDGOLD RESOURCES LTD
(GOLD) 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 expanding profit margins. However,
as a counter to these strengths, we also find weaknesses including
a generally disappointing performance in the stock itself and
disappointing return on equity."
Highlights from the analysis by
TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of
0.7%. Since the same quarter one year prior, revenues rose by
27.9%. This growth in revenue appears to have trickled down to the
company's bottom line, improving the earnings per share.
- GOLD's debt-to-equity ratio is very low at 0.02 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 1.10, which illustrates the ability to avoid
short-term cash problems.
- RANDGOLD RESOURCES LTD has improved earnings per share by 12.0%
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, RANDGOLD RESOURCES LTD reported lower earnings of
$2.99 versus $4.65 in the prior year. This year, the market expects
an improvement in earnings ($3.02 versus $2.99).
- The company's current return on equity has slightly decreased
from the same quarter one year prior. This implies a minor weakness
in the organization. Compared to other companies in the Metals
& Mining industry and the overall market on the basis of return
on equity, RANDGOLD RESOURCES LTD has outperformed in comparison
with the industry average, but has underperformed when compared to
that of the S&P 500.
- GOLD has underperformed the S&P 500 Index, declining 5.51%
from its price level of one year ago. The fact that the stock is
now selling for less than others in its industry in relation to its
current earnings is not reason enough to justify a buy rating at