Earnings Quality

Sky Deutschland, which offers pay-TV subscription programming in Germany, has lots of viewers – and lots of debt. It’s paying top dollar for must-see events and its debt/equity ratio shows it is highly levered. The StarMine SmartRatios Credit Risk Model implied rating of CCC indicates that the company’s balance sheet may need strengthening. Media companies [...]

Faced with a growing debt burden, agricultural supplier Olam is facing increased interest costs and continued poor cash flows — factors that affect earnings quality. Olam International Limited (OLAM.SI) is a Singapore-based supplier of agricultural products such as nuts, coffee, spices and cotton. It also provides commodity financial services and risk management solutions. In November [...]

Based in Jiaxing, China, the 19-year-old Haining China Leather Market sells leather and fur products – and acts as a pricing and fashion center. Enjoying revenue and earnings growth powered by strong cash flows and expanding margins, Haining is exhibiting signs of excellent earnings quality. China’s economy may be cooling down, but its people are [...]

Europe’s sputtering economy and a competitive market in China are stalling earnings and revenues at car and truck manufacturer Daimler AG. Furthermore, weak cash flows and falling margins are contributing to poor earnings quality. The European economic slowdown slashed demand for cars and trucks. Germany’s Daimler AG (DAIGn.DE) — maker of Mercedes Benz luxury cars [...]

China’s economic growth is decelerating and that’s applying the brakes to the automobile sector. Brilliance China Automotive is faced with weak cash flows and falling margins. A Thomson Reuters StarMine Earnings Quality analysis indicates the company’s earnings may encounter bumps in the road ahead. As China’s economy slows down (relatively speaking) and as the new [...]

Hanesbrands struggled when cotton prices spiked dramatically a little over a year ago; now that they have come back to earth, the company appears to be reaping the benefits of its efforts to improve operating efficiency as well as the lower raw materials costs, in the shape of what may be higher profits and appear [...]

Panera Bread Company’s customers like its fresh soups and sandwiches; its investors may find its high earnings quality equally tasty. Given the choice, there are plenty of time-pressed commuters and frazzled parents who would prefer a healthier, fresher or more flavorful alternative to the burgers and chicken nuggets offered by the likes of Yum Brands [...]

Cisco’s leavings appear to be quite appealing enough for F5 Networks: the company shows signs of being able to generate healthy and sustainable earnings from a business that Cisco abandoned as too competitive. Whenever a big competitor abandons a product line, the other players in the space tend to benefit and that is exactly what [...]

Tesla Motors has outsize goals for 2013, including selling ten times as many cars as it did in 2012 and transforming its 2012 loss into a profit. But the company’s earnings quality remains weak. It may be a while before you spot a Tesla Motors (TSLA.O) automobile driving down your street or parked in your [...]

Haemonetics’ products may be able to get your blood donation moving swiftly to where it is most needed, but the company’s flow of earnings isn’t quite as impressive, especially on a GAAP basis. The next time that you donate blood, odds are that somewhere along the way, whoever is collecting it or using it will [...]