NEW YORK (TheStreet) -- Shares of Ikonics Corp.
(IKNX - Get Report) are up 5.55% to $25.40 after it announced plans to expand use of its composite machining capabilities for the aerospace industry.
Ikonics, which currently makes electronic wafers for Airbus (EADSY) and Bombardier (BDRBF), said its board approved a capital expenditure for for automated equipment involved in the expansion.
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Separately, TheStreet Ratings team rates IKONICS CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate IKONICS CORP (IKNX) 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, compelling growth in net income, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- IKNX's revenue growth has slightly outpaced the industry average of 7.1%. Since the same quarter one year prior, revenues rose by 11.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- IKNX 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 4.05, 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 Chemicals industry. The net income increased by 332.9% when compared to the same quarter one year prior, rising from -$0.09 million to $0.21 million.
- Net operating cash flow has significantly increased by 243.31% to $0.35 million when compared to the same quarter last year. In addition, IKONICS CORP has also vastly surpassed the industry average cash flow growth rate of -1.65%.
- 43.09% is the gross profit margin for IKONICS CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.59% trails the industry average.
- You can view the full analysis from the report here: IKNX Ratings Report