Is Time Warner Cable’s Stock a Buy Now?

E = Equity to Debt Ratio Is Weak

The debt-to-equity ratio for Time Warner Cable is high. It’s much higher than the debt-to-equity ratio for Comcast Corporation (NASDAQ:CMCSA). The balance sheet isn’t pretty, either.

Debt-To-Equity

Cash

Long-Term Debt

TWC

3.55

$3.88 Billion

$27.36 Billion

CMCSA

.78

$10.30 Billion

$38.59 Million

CVC

N/A

$822.79 Million

$11.30 Billion

 

T = Technicals on the Stock Chart Are Strong

Time Warner Cable’s stock has performed extremely well over the past three years. It has outperformed Cablevision Systems Corporation (NYSE:CVC) by a significant margin.

1 Month

Year-To-Date

1 Year

3 Year

TWC

6.85%

55.28%

58.67%

148.70%

CMCSA

7.11%

62.60%

66.03%

133.80%

CVC

6.99%

9.96%

22.63%

-37.29%

 

At $95.98, Time Warner Cable is currently trading above all its averages.    

50-Day SMA

95.40

100-Day SMA

92.81

200-Day SMA

86.17

 

E = Earnings and Revenue Have Been Poor

Revenue has been steadily improving over the years. Earnings have been impressive over the past three years.

2007

2008

2009

2010

2011

Revenue ($)in billions

15.96

17.20

17.87

18.87

19.68

Diluted EPS ($)

3.45

-22.55

3.05

3.64

4.97

 

Looking at the last quarter on a YoY basis, we see a nice increase in revenue and earnings.   

9/2011

12/2011

3/2012

6/2012

9/2012

Revenue ($)in billions

4.91

4.99

5.13

5.40

5.36

Diluted EPS ($)

1.08

1.72

1.20

1.43

2.60