Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. NEW YORK (TheStreet) -- Lihua International (Nasdaq:LIWA) 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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins.
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- The revenue growth came in higher than the industry average of 8.6%. Since the same quarter one year prior, revenues rose by 28.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- LIWA 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 12.50, which clearly demonstrates the ability to cover short-term cash needs.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 38.96% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LIWA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- LIHUA INTERNATIONAL INC has improved earnings per share by 15.6% 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, LIHUA INTERNATIONAL INC increased its bottom line by earning $1.94 versus $1.76 in the prior year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the Electrical Equipment industry average, but is less than that of the S&P 500. The net income increased by 16.6% when compared to the same quarter one year prior, going from $13.45 million to $15.68 million.
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