NEW YORK (TheStreet) -- Ritchie Bros. Auctioneers (NYSE:RBA) 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, compelling growth in net income, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 1.4%. Since the same quarter one year prior, revenues rose by 28.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for RITCHIE BROS AUCTIONEERS INC is currently very high, coming in at 88.10%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 23.60% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 68.01% to -$22.45 million when compared to the same quarter last year. In addition, RITCHIE BROS AUCTIONEERS INC has also vastly surpassed the industry average cash flow growth rate of -0.45%.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Services & Supplies industry. The net income increased by 98.0% when compared to the same quarter one year prior, rising from $13.52 million to $26.77 million.
- RITCHIE BROS AUCTIONEERS INC 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 year. During the past fiscal year, RITCHIE BROS AUCTIONEERS INC increased its bottom line by earning $0.72 versus $0.63 in the prior year.
-- Written by a member of TheStreet RatingsStaff
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