NEW YORK (TheStreet) -- Shares of P&F Industries Inc.
(PFIN - Get Report) are up 1.43% to $7.74 after it announced it acquired all of the outstanding equity interests of Exhaust Technologies, Inc.
(EXHS) with a total purchase price of approximately $10.37 million in cash, effective July 1.
P&F said it believes that this acquisition will be immediately accretive to earnings.
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Separately, TheStreet Ratings team rates P & F INDUSTRIES as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate P & F INDUSTRIES (PFIN) a BUY. This is driven by multiple strengths, 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 largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- PFIN's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.40, which illustrates the ability to avoid short-term cash problems.
- 40.59% is the gross profit margin for P & F INDUSTRIES which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 2.89% is above that of the industry average.
- Net operating cash flow has significantly increased by 81.62% to -$1.42 million when compared to the same quarter last year. Despite an increase in cash flow of 81.62%, P & F INDUSTRIES is still growing at a significantly lower rate than the industry average of 251.66%.
- The revenue fell significantly faster than the industry average of 17.4%. Since the same quarter one year prior, revenues fell by 23.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: PFIN Ratings Report