NEW YORK (TheStreet) -- Winner Medical Group (Nasdaq:WWIN) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 8.6%. Since the same quarter one year prior, revenues rose by 22.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- WWIN's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, WWIN has a quick ratio of 1.66, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly increased by 93.01% to -$0.54 million when compared to the same quarter last year. In addition, WINNER MEDICAL GROUP INC has also vastly surpassed the industry average cash flow growth rate of -5.41%.
- WINNER MEDICAL GROUP INC's earnings per share declined by 28.6% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, WINNER MEDICAL GROUP INC reported lower earnings of $0.48 versus $0.56 in the prior year. This year, the market expects an improvement in earnings ($0.56 versus $0.48).
-- Written by a member of TheStreet RatingsStaff
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