Revett Minerals Inc. Stock Upgraded (RVM)

NEW YORK (TheStreet) -- Revett Minerals (AMEX:RVM) 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, notable return on equity, attractive valuation levels and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

• RVM's very impressive revenue growth greatly exceeded the industry average of 1.1%. Since the same quarter one year prior, revenues leaped by 50.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
• RVM's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.92, which clearly demonstrates the ability to cover short-term cash needs.
• The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Metals & Mining industry and the overall market, REVETT MINERALS INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
• REVETT MINERALS 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 two years. During the past fiscal year, REVETT MINERALS INC increased its bottom line by earning $0.27 versus $0.12 in the prior year.

Revett Minerals Inc., through its subsidiaries, engages in the exploration of copper and silver properties in the United States. The company has a P/E ratio of 6.2, below the average metals & mining industry P/E ratio of 7.2 and below the S&P 500 P/E ratio of 17.7. Revett has a market cap of $112.8 million and is part of the basic materials sector and metals & mining industry. Shares are down 29.9% year to date as of the close of trading on Tuesday.

You can view the full Revett Ratings Report or get investment ideas from our investment research center.

-- Written by a member of TheStreet Ratings Staff

TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

 

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• Revett Minerals Inc. Income Statement