Precision Castparts Corp. Stock Buy Recommendation Reiterated (PCP)
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- PCP's revenue growth has slightly outpaced the industry average of 6.7%. Since the same quarter one year prior, revenues rose by 13.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.21, which illustrates the ability to avoid short-term cash problems.
- PRECISION CASTPARTS CORP has improved earnings per share by 8.9% 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, PRECISION CASTPARTS CORP increased its bottom line by earning $8.45 versus $7.02 in the prior year. This year, the market expects an improvement in earnings ($9.71 versus $8.45).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Aerospace & Defense industry average. The net income increased by 10.0% when compared to the same quarter one year prior, going from $307.30 million to $338.00 million.
- Net operating cash flow has increased to $392.30 million or 28.87% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -10.50%.
--Written by a member of TheStreet Ratings Staff. Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
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