NEW YORK (TheStreet) -- Shares of Profire Energy Inc. (PFIE - Get Report) are up 5.32% to $4.75 on Tuesday afternoon following the company's 2014 fiscal year earnings results showing a record increase in net income to $5.6 million, or 12 cents per share, compared to $1.4 million, or 3 cents per share for the 2013 fiscal year.
The company, which develops combustion management technologies for the oil and gas industry, posted a record rise in revenue to $35.4 million, from $16.9 million for the previous year.
Gross profit increased to $20 million, or 56% of the total revenue in fiscal 2014, versus $8.8 million, or 52.6% of fiscal 2013's total revenue.
Separately, TheStreet Ratings team rates PROFIRE ENERGY INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate PROFIRE ENERGY INC (PFIE) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- When compared to other companies in the Energy Equipment & Services industry and the overall market, PROFIRE ENERGY INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- PFIE's very impressive revenue growth greatly exceeded the industry average of 11.1%. Since the same quarter one year prior, revenues leaped by 169.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Powered by its strong earnings growth of 400.00% and other important driving factors, this stock has surged by 256.61% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
- The gross profit margin for PROFIRE ENERGY INC is rather high; currently it is at 54.75%. Regardless of PFIE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 12.65% trails the industry average.
- You can view the full analysis from the report here: PFIE Ratings Report