Neustar, Inc. (NYSE:NSR)(Trend analysis) is a company worth to look into from a fundamental point of view. Indeed the company has a return on equity of 28.3% compared to 20.8% for the Telecom Services sector. You can also note that earnings per share (EPS) has grown by 15.9% on average for the last 5 years, indicative of consistent growth in earnings.
The price-earnings ratio of Neustar, Inc. (NYSE:NSR) stands at 9.2, which is lower than the sector average of 51.9, a good point for the company. Indeed it is better to compare price-earnings ratio to the sector P/E as this ratio can change significantly from one sector to another, making the comparison less relevant.
Also it is interesting to look into the ratio of debt to equity ratio to check if the company is not too much reliant on the outside funding to finance its growth. Neustar, Inc. (NSR) has a debt to equity ratio of 128% which is a reasonable figure and is below the Telecom Services sector average of 147.8%. The company has a current ratio of 2.62. This ratio should be higher than one (ideally two) and is an indicator to show if the company is able to finance its short term obligations. Indeed it should have higher short term assets to dispose in order to cover for its short term liabilities.
For reference, it is important to look at these two ratios as important debt can lead to artificially high profitability ratios and company can get into trouble when a drop in sales occurs and/or higher financing costs when interest rate go upwards.
NSR has a Market Cap of $1.22 billion. The company’s stock year-to-date perfomance is in negative territory, at -13.13% versus an industry average positive performance of 3.72%.
Neustar, Inc. (NSR) reported last quarter earnings on February 03. The Telecom Services company announced earning per share of $1.01 against a consensus Street estimate of $0.84, beating the average estimate by $0.17. This corresponds to an increase of $0.15 compared to the same quarter of the previous fiscal year.
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There are currently eight analysts that cover NSR stock. Of those eight, one has a Buy rating, seven have a Hold rating. On a consensus basis this yields to a Hold rating. The consensus target price stands at $26.75.
Neustar, Inc. Neustar, Inc. Cla (NYSE:NSR) looks to be a ‘Buy’ from a fundamental perspective.
NeuStar, Inc. provides technology and directory services to its communications service provider (carrier) and non-carrier, commercial business customers worldwide. The company operates in three segments: Carrier Services, Enterprise Services, and Information Services. The Carrier Services segment offers numbering, order management, and Internet Protocol (IP) services through its set of databases and system infrastructure in geographically dispersed data centers. It also facilitates order management and work flow processing among carriers, and allows operators to manage and optimize the addressing and routing of IP communications. The Enterprise Services segment provides Internet infrastructure and registry services. It offers a suite of domain name system services to enterprise customers through its global directory platform, including registry services; and manages directories of similar resources, or addresses. This segment also provides fixed IP geolocation services that help enterprises identify the location of their online consumers for various purposes, such as fraud prevention and marketing. In addition, it offers directory services for the 5 and 6-digit number strings used for the U.S. common short codes, which is part of the short messaging service relied upon by the U.S. wireless industry. The Information Services segment provides on-demand solutions that help carriers and enterprises identify, verify, score, and locate customers and prospective customers. The company serves traditional providers of communications, including local exchange carriers, competitive local exchange carriers, wireless service providers, and long distance carriers. It also serves emerging communication service providers and providers of VoIP services, as well as customers who are either enablers of Internet services or providers of information and content to Internet and telephone users. The company was founded in 1996 and is headquartered in Sterling, Virginia.