NEW YORK (TheStreet) -- Empresas ICA SA de CV (NYSE:ICA) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally poor debt management, weak operating cash flow and a generally disappointing performance in the stock itself. Highlights from the ratings report include:
- Currently the debt-to-equity ratio of 1.86 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with the unfavorable debt-to-equity ratio, ICA maintains a poor quick ratio of 0.84, which illustrates the inability to avoid short-term cash problems.
- Net operating cash flow has significantly decreased to -$99.85 million or 191.41% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- EMPRESAS ICA SAB DE CV reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, EMPRESAS ICA SAB DE CV increased its bottom line by earning $0.45 versus $0.35 in the prior year. This year, the market expects an improvement in earnings ($0.69 versus $0.45).
- ICA's revenue growth has slightly outpaced the industry average of 4.8%. Since the same quarter one year prior, revenues rose by 11.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
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