Rating Change #3
Bolt Technology Corporation (BOLT) 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, increase in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 11.1%. Since the same quarter one year prior, revenues rose by 49.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- BOLT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.61, which clearly demonstrates the ability to cover short-term cash needs.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 136.7% when compared to the same quarter one year prior, rising from $0.72 million to $1.70 million.
- Net operating cash flow has increased to $2.46 million or 44.03% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 15.88%.
- Powered by its strong earnings growth of 150.00% and other important driving factors, this stock has surged by 34.06% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.