Thursday, May 22, 2014

How Will Sodastream (SODA) Stock React To This Downgrade?

5 Best Transportation Stocks To Own For 2015

NEW YORK (TheStreet) -- Shares of Sodastream International Ltd. (SODA) were downgraded to "underweight" from "equal weight" at Barclays (BCS) with a $35.00 price target. 

The stock is down -1.19% to $39.15 in pre-market trade.

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Separately, TheStreet Ratings team rates SODASTREAM INTERNATIONAL LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: "We rate SODASTREAM INTERNATIONAL LTD (SODA) 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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income." Highlights from the analysis by TheStreet Ratings Team goes as follows: SODA's revenue growth trails the industry average of 19.0%. Since the same quarter one year prior, revenues slightly increased by 0.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. SODA's debt-to-equity ratio is very low at 0.07 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 1.05, which illustrates the ability to avoid short-term cash problems. The gross profit margin for SODASTREAM INTERNATIONAL LTD is rather high; currently it is at 55.84%. Regardless of SODA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.50% trails the industry average. SODASTREAM INTERNATIONAL LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, SODASTREAM INTERNATIONAL LTD reported lower earnings of $1.96 versus $2.09 in the prior year. For the next year, the market is expecting a contraction of 1.0% in earnings ($1.94 versus $1.96). The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Household Durables industry. The net income has significantly decreased by 85.3% when compared to the same quarter one year ago, falling from $12.08 million to $1.78 million. You can view the full analysis from the report here: SODA Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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