NEW YORK (TheStreet) -- Steelcase (NYSE:SCS) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, attractive valuation levels, good cash flow from operations and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins. Highlights from the ratings report include:
- SCS's revenue growth has slightly outpaced the industry average of 1.6%. Since the same quarter one year prior, revenues slightly increased by 7.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- STEELCASE INC has improved earnings per share by 21.4% 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. During the past fiscal year, STEELCASE INC turned its bottom line around by earning $0.16 versus -$0.10 in the prior year. This year, the market expects an improvement in earnings ($0.61 versus $0.16).
- Net operating cash flow has slightly increased to $51.00 million or 5.59% when compared to the same quarter last year. In addition, STEELCASE INC has also modestly surpassed the industry average cash flow growth rate of 2.29%.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Commercial Services & Supplies industry average. The net income increased by 22.4% when compared to the same quarter one year prior, going from $18.30 million to $22.40 million.
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