The firm said it lowered its rating on the company, which manufactures and markets analog, mixed signal, and power managed integrated circuits, based on a valuation call.
"We rate INTERSIL CORP (ISIL) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
Separately, TheStreet Ratings team rates INTERSIL CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
- ISIL's revenue growth has slightly outpaced the industry average of 3.4%. Since the same quarter one year prior, revenues slightly increased by 6.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- ISIL 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. To add to this, ISIL has a quick ratio of 2.03, which demonstrates the ability of the company to cover short-term liquidity needs.
- INTERSIL CORP 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. We feel that this trend should continue. During the past fiscal year, INTERSIL CORP turned its bottom line around by earning $0.03 versus -$0.29 in the prior year. This year, the market expects an improvement in earnings ($0.73 versus $0.03).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 296.7% when compared to the same quarter one year prior, rising from $2.52 million to $10.01 million.
- Net operating cash flow has increased to $17.86 million or 10.56% when compared to the same quarter last year. In addition, INTERSIL CORP has also modestly surpassed the industry average cash flow growth rate of 4.17%.
- You can view the full analysis from the report here: ISIL Ratings Report